Finnfund set to expand Pakistan’s Insurance Industry through a stake in TPL Insurance Limited
Finnfund set to expand Pakistan’s Insurance Industry through a stake in TPL Insurance Limited
Karachi– 21 July, Finnfund, a major development financier and impact investor in Finland, investing in responsible and profitable businesses in developing countries, has invested by acquiring 17.59% shareholding in TPL Insurance Limited. The acquisition follows TPL Insurance Limited’s earlier disclosure, dated April 15, 2022, to the Pakistan Stock Exchange concerning the execution of the Share Subscription Agreement and a Shareholders Agreement with Finnfund.
This foreign collaboration will enable TPL Insurance Limited to introduce innovative and tech-driven products, such as yield-based crop and livestock insurance, as well as women-specific insurance programs, thereby increasing the penetration of insurance in Pakistan in diverse segments. TPL Insurance Limited 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 Limited.
Finnfund is a Finnish development financier and impact investor. They build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. Finnfund invests 200–250 million euros in 20–30 companies in developing countries each year. The focus sectors include renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today Finnfund’s investments, commitments, and investment decisions total about 1.12 billion euros, half of them in Africa. The company has 90 employees.
With a technologically-driven business model supplemented by Finnfund’s global experience and knowledge, TPL Insurance Limited 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, of TPL Insurance Limited, said, “I take deep pride in welcoming Finnfund on board at a time when the global economy is facing extremely challenging times. I am confident that Finnfund’s entry into the Pakistani market will provide impetus to more foreign investments in the country and boost the economic growth of Pakistan. For us, working with the experience and expertise of Finnfund will help accelerate our growth and make a larger impact in developing the insurance sector in 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 Limited, 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.”