Sri Lanka’s Softlogic Life Insurance has entered Bangladesh by acquiring a 60 per cent stake in Diamond Life Insurance Company Ltd for $1.9 million, or more than Tk23 crore, marking what the companies described as the first foreign acquisition in Bangladesh’s life insurance sector and the acquirer’s first expansion outside Sri Lanka.
The acquisition, earlier disclosed on the Colombo Stock Exchange and announced in Dhaka on Sunday, gives Softlogic Life a controlling stake in Diamond Life as part of Softlogic’s regional expansion strategy and opens the door to one of South Asia’s least-penetrated life insurance markets.
Founded in 2014, Diamond Life operates in a market where life insurance covers less than 5 per cent of the population.
Overall insurance penetration stands at about 0.4-0.5 per cent of GDP despite Bangladesh’s population of more than 170 million, a growing middle class and rising financial awareness, leaving significant room for long-term industry growth.
Softlogic Life said it plans to strengthen Diamond Life by introducing its expertise in health insurance, claims management, digital operations, product innovation and customer service, positioning itself as a long-term strategic insurer rather than a financial investor seeking a quick return.
For Bangladesh, the transaction represents a rare cross-border strategic investment in financial services as regulators seek to improve governance and restore confidence in the insurance sector.
Softlogic Life has grown fast over the past decade into Sri Lanka’s second-largest life insurer, with a strategy centred on protection and health insurance, technology-led operations and customer-focused products.
The company said its gross written premium, profit before tax, profit after tax and earnings per share have all doubled over the past four years.
Over the past decade, it achieved a 26 per cent compound annual growth rate in gross written premium, compared with the Sri Lankan industry average of 16 per cent, while maintaining return on equity above 30 per cent.
The insurer also expanded through the acquisition of Allianz Life Insurance Lanka, formerly the Sri Lankan operation of global insurer Allianz, and attracted investments from Norwegian development finance institution Norfund and Finnish development financier OP Finnfund, strengthening its capital base and governance.
Softlogic Life said its operating model combines disciplined distribution, digital systems, artificial intelligence-enabled claims processing and faster claim settlements.
The company said the technology has helped it become Sri Lanka’s leader in health and protection claims by improving settlement speed and transparency, and it intends to introduce the same approach in Bangladesh, where delayed claim settlements have long weakened customer confidence.
Softlogic chairman Ashok Pathirage previously told TIMES of Bangladesh that Bangladesh is a strategic market for the group. He said Softlogic is also exploring opportunities in healthcare, including attracting Bangladeshi patients to Sri Lanka for treatment and potentially acquiring a hospital in Bangladesh.
The latest deal revives Softlogic Group’s Bangladesh expansion after an earlier plan to enter the market through retail chain Agora in 2022 was abandoned during Sri Lanka’s foreign exchange crisis.
Founded in 1991, Softlogic Holdings PLC is a diversified Sri Lankan conglomerate with businesses spanning insurance, healthcare, retail, technology, financial services and hospitality.
Its healthcare arm operates the Asiri hospital network, while its retail portfolio includes Glomark supermarkets and franchises such as Nike, Levi’s and Burger King.
Analysts said the Diamond Life acquisition signals renewed foreign strategic investment in Bangladesh’s financial services sector while highlighting growing confidence in the long-term potential of the country’s underdeveloped life insurance market.
