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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.