Lahore, April 22, 2021: DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a wholly owned subsidiary of KfW Group based in Cologne, Germany, has acquired a 19.9% equity stake in TPL Insurance by investing PKR 466.5 million on a fully diluted basis. The acquisition 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, Securities and Exchange Commission of Pakistan and other regulatory bodies.
This foreign collaboration will help TPL Insurance to develop its Agriculture and Micro Insurance segments, thereby increasing penetration of insurance in Pakistan. 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.
Founded in 1962, DEG is one of Europe’s largest development financial institutions for private companies. DEG’s interest in TPL Insurance is backed by their vision to support impactful investments that drive financial inclusion. The Company’s long-term strategy is to support insurance companies in regions with low insurance penetration and promote economic growth. The development financier will appoint a member on the Board of Directors of TPL Insurance.
With a technologically-driven business model supplemented by DEG’s global experience and knowledge, TPL Insurance aims to enhance its CSR footprint by introducing new product lines. Last year, the Company joined the United Nations Environment Program Finance Initiative (UNEP FI) by signing its Principles of Sustainable Insurance (PSI), and became the first Insurance Member of the UNEP FI from Pakistan.
Commenting on the occasion, Muhammad Aminuddin, CEO, TPL Insurance, said, “I take deep pride in welcoming DEG on board at a time when the global economy is facing extremely challenging times. Working with the experience and expertise of DEG, one of Europe’s largest private-sector development financiers, will help us accelerate our growth and make a larger impact in developing the insurance sector in Pakistan. I am confident that DEG’s re-entry to the Pakistani market will provide an impetus to foreign investments in the country and boost economic growth.”