AIA Lanka to go private; seeks permission to delist from CSE

• AIA Lanka CEO says delisting in sync with operating model followed by AIA Group
• Chairman says delisting is a reaffirmation of AIA Group’s  commitment to Sri Lankan market
• AIA Company Limited to make an offer to purchase all remaining shares at Rs.1, 000 per share
• Company affirms policy holder liabilities will not be affected by the move

AIA Insurance Lanka PLC last Friday announced its intention to delist its securities from the Colombo Stock Exchange (CSE), subject to obtaining requisite approvals.
 AIA Insurance Lanka Director & Chief Officer Legal Chathuri Munaweera said the Regulation of Insurance Industry (Amendment) Act No.23 of 2017 enables local subsidiary insurance companies of foreign companies listed on a stock exchange outside Sri Lanka to be exempted from their obligation to be listed, if the Insurance Regulatory Commission of Sri Lanka is satisfied that such a subsidiary meets specified statutory criteria. 

“As already disclosed to the CSE on 20 July 2018, AIA Insurance Lanka’s application for exemption from being listed on a licensed stock exchange, (based on the strength of its ultimate holding / parent company AIA Group Limited (AIA Group), which is listed on the Hong Kong Stock Exchange Limited), has been approved by the Insurance Regulatory Commission of Sri Lanka,” Munaweera stated.

According to AIA Insurance Lanka CEO Pankaj Banerjee, it has been AIA Group’s ultimate objective to delist AIA Insurance Lanka from the CSE, subject to legal and regulatory requirements and having obtained all necessary regulatory approvals, as disclosed by AIA Group in its voluntary offer during 2013.

Banarjee said it is consistent with the target operating model followed by AIA Group, where its insurance operating units are held as wholly owned subsidiaries wherever possible and permissible, with the parent company being the only publicly listed entity. 

AIA Company Limited, the principal operating company of AIA Group and an existing shareholder of AIA Insurance Lanka, will make an offer to purchase all other existing shares at a price of Rs.1, 000 per share for purposes of the proposed delisting of AIA Insurance Lanka. 

Banarjee said the company will convene an Extraordinary General Meeting (AGM) in relation to this matter shortly.

Meanwhile, AIA Insurance Lanka Chairman William Lisle reiterated AIA Group’s commitment to Sri Lanka, saying thecompany is fully committed to continued growth and investment in Sri Lanka for the benefit of our customers, as well as for the local community and economy. 

“Our intent to delist is a reaffirmation of our commitment to the Sri Lankan market which has very good growth potential. We have invested heavily to provide our customers with leading products and services and we will continue to help many more people here live healthier, longer, better lives,” he said.

AIA Insurance Lanka’s licence to carry out life insurance business as granted by the Insurance Regulatory Commission of Sri Lanka will not be affected by the said proposed delisting of the company and the business will continue to be supervised by the Insurance Regulatory Commission of Sri Lanka.  

The company also said the policyholder liabilities will not be affected and AIA Insurance Lanka will continue to serve its customers and honour its obligations as the insurer for all customers for the risks duly underwritten per policy terms.

AIA Group Limited and its subsidiaries comprise the largest independent publicly listed pan-Asian life insurance group. 

It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97.16 per cent subsidiary in Sri Lanka, a 49 percent joint venture in India and a representative office in Myanmar.