Pakistan:German development finance institution takes stake in direct insurer

Deutsche Investitions und EntwicklungsgesellschaftmbH (DEG), a German development finance institution, has acquired a 19.9% equity stake in TPL Insurance, by investing PKR466.5m ($3m) in the InsurTech company.

This foreign collaboration will help TPL Insurance, which is Pakistan's first direct insurer, to develop its agriculture and microinsurance segments, thereby increasing penetration of insurance in Pakistan.

TPL Insurance intends to further develop its digital assets and bring efficiencies through digitisation of business processes.

The acquisition by DEG follows TPL Insurance’s announcement made in June last year to the Pakistan Stock Exchange on DEG’s interest in acquiring an equity stake in the company subject to approval from the board of directors, shareholders, the Securities and Exchange Commission of Pakistan and other regulatory bodies.

With the experience and expertise of DEG as a major institutional investor, TPL Insurance will benefit in terms of custom-shaped solutions in several areas including corporate governance practices, business support, risk management and environmental and social matters.

DEG is a wholly owned subsidiary of the German state-owned investment and development bank KfW Group.

Source: Asia Insurance Review