Mitsui Sumitomo, of Japan enters the local market thro’ Ceylinco Insurance
Mitsui Sumitomo Insurance Co Ltd, the largest insurance company in Japan bought a stock of 1.2 million shares of CIESOT, the employee share ownership trust of Ceylinco Insurance PLC. The stock amounts to a stake of 6 % of Ceylinco Insurance PLC and the shares were sold at Rs 1,602/- per share whilst the total transaction amounted to Rs 1.92 billion ( JPY 1.7 billion).
Through a communiqué issued by Ceylinco Insurance regarding the transaction, the company said that they are quite pleased with Mitsui Sumitomo Insurance Ltd ( MSI ) entering the local market through Ceylinco Insurance. MSI is considered as the largest insurance company in Asia and holds a A+ rating. Further, the same communiqué said Ceylinco Insurance had maintained a strong business relationship with MSI for over 20 years fostering mutual trust and that Ceylinco Insurance will be able to offer an exemplary service with very competitive pricing particularly to the Japanese investors and projects here in Sri Lanka as well as others. Ceylinco Insurance is confident that this synergy will add further value and bring in more expertise to its activities and operations, it further stated.
This is the first ever investment by a Japanese insurance company in Sri Lanka and MSI is in the process of enhancing its business network in the South Asian region. Through a similar statement, MSI said that they will promote Ceylinco Insurance to increase penetration in Sri Lanka and that they will be able to work more closely with the Japanese corporates operating in Sri Lanka. It also added that Sri Lanka is attracting much attention from Japanese investors after the visit of Japanese Prime Minister, His Excellency Mr. Shinzo Abe, last September.