TPL Insurance Limited, a subsidiary of TPL Corp Limited, is pleased to announce that the Company has entered into a Share Subscription Agreement and a Shareholders Agreement with Finnfund, a major development financier and impact investor, investing in responsible and profitable businesses in the developing countries.
The acquisition follows TPL Insurance’s earlier disclosure, dated October 26, 2021 to the Pakistan Stock Exchange on Finnfund’s interest in acquiring an equity stake in the company subject to approval from the Board of Directors, Shareholders, Securities and Exchange Commission of Pakistan and other regulatory bodies. Pursuant to the agreement, Finnfund will hold 14.97% of the then total issued share capital, on a fully diluted basis, subject to obtaining all regulatory approvals.
This foreign collaboration will enable TPL Insurance to introduce innovative and tech driven products, such as yield based crop and livestock insurance, as well as women specific insurance programs, thereby increasing penetration of insurance in Pakistan in diverse segments. TPL Insurance intends to further develop its digital assets and bring efficiencies through digitization of business processes. The equity injection will also improve the financial strength and underwriting capability of TPL Insurance.
Commenting on the occasion, Muhammad Aminuddin, CEO, TPL Insurance, said, “I take deep pride in welcoming Finnfund on board at a time when the global economy is facing extremely challenging times. Working with the experience and expertise of Finnfund will help us accelerate our growth and make a larger impact in developing the insurance sector in Pakistan. I am confident that Finnfund’s entry to the Pakistani market will provide impetus to more foreign investments in the country and boost the economic growth of Pakistan.”
Ulla-Maija Rantapuska, Investment Manager at Finnfund, said, “This investment strengthens our role and expertise as an impact investor in the insurance sector. We are happy to partner with TPL Insurance, a pioneer in Pakistan in developing online insurance services, and see a possibility to deliver significant development impacts by expanding the insurance industry in Pakistan. TPL’s ambitious development of new service channels and products will allow access to insurance for those previously underserved.”