Sri Lanka’s Softlogic to acquire Diamond Life Insurance

Softlogic Life Insurance PLC, the second-largest life insurer in Sri Lanka, is set to acquire Diamond Life Insurance Company, a relatively new player in Bangladesh’s life insurance market, which generates more than Tk 12,000 crore in annual gross premiums.

The Sri Lankan company has signed a share purchase agreement to acquire a 60 percent stake in Diamond Life Insurance for nearly $1.9 million (Tk 23.4 crore), according to a disclosure filed with the Colombo Stock Exchange on June 18.

On the matter, Diamond Life Insurance Chairman Riad Mahmud said discussions were still ongoing and that the deal had not yet been finalised.

“We are still at the negotiation stage. We expect to finalise it by July 2,” he said.

“We have received a decent valuation from our perspective,” said Riad, who is also president of the Bangladesh Association of Publicly Listed Companies (BAPLC), explaining the rationale behind the sale. However, he declined to disclose the amount.

Diamond Life Insurance began operations in 2014 with an authorised capital of Tk 100 crore and a paid-up capital of Tk 18 crore.

If completed, Softlogic will become the third foreign insurer in Bangladesh’s life insurance market, after MetLife and LIC.

Meanwhile, the sector continues to face weak public trust, largely due to poor claims settlement.

Life insurance accounted for only 0.24 percent of Bangladesh’s GDP in 2024, down from 0.27 percent a year earlier. The number of life insurance policies also fell 6 percent year-on-year to 70.89 lakh in 2024, according to the Insurance Development and Regulatory Authority.

Softlogic began operations in 1999 and is now the second-largest life insurer in Sri Lanka, holding an 18.4 percent market share.

Formerly known as Asian Alliance Insurance PLC, the company reported gross premiums of Rs 40.1 billion (Tk 1,467 crore) at the end of 2025, according to its annual report.

“Softlogic is technology-focused and has a strong track record in service quality. It uses artificial intelligence to issue policies and can settle claims within minutes. That will likely be its key strength in Bangladesh as well,” said Deshan Pushparajah, country head of CAL Bangladesh, the investment bank acting as Softlogic’s investment adviser.

Softlogic plans to expand in Bangladesh by developing its health insurance business, Bloomberg reported, quoting Managing Director Iftikar Ahamed.

Health insurance, where Softlogic already has expertise, remains largely underdeveloped in Bangladesh, indicating significant untapped potential. The company will rely on its fast claims settlement system to attract customers in Bangladesh, Ahamed added.