Germany’s DEG re-enters Pakistan Insurance Market, invests over $3mn

DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, a wholly-owned subsidiary of KfW Group based in Cologne, Germany, has acquired a 19.9 percent equity stake in Pakistan’s TPL Insurance by investing Rs 466.5 million ($ 3mn) 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, (SECP) and other regulatory bodies.

As per details, this foreign collaboration will help TPL Insurance to develop its agriculture and micro-insurance segments, thereby increasing the penetration of insurance in Pakistan. TPL Insurance intends to further develop its digital assets and bring efficiencies through the 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.

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.”