Sri Lankan conglomerate Softlogic Group is set to acquire Diamond Life Insurance, marking what could become the largest foreign investment in Bangladesh’s life insurance sector in recent years, according to people familiar with the matter.
Softlogic Chairman Ashok Pathirage confirmed to TIMES of Bangladesh that Colombo-based Softlogic Life has agreed to acquire a life insurance company in Bangladesh but declined to identify the target, citing price-sensitive considerations.
“We expect to share an update next month,” he said on Wednesday.
Three people with knowledge of the developing deal said Dhaka-based Diamond Life Insurance is the company being acquired.
Founded in 2014 with paid-up capital of Tk18 crore, the non-listed insurer earned more than Tk14 crore in premium income in 2025.
Total assets stood at Tk16.54 crore at the end of December, according to the Insurance Development and Regulatory Authority.
People familiar with the negotiations said the promoters are seeking a return comparable to fixed-income investments over the past decade, implying a valuation of more than Tk50 crore.
Without commenting on the transaction, Pathirage said Bangladesh’s low insurance penetration presents a significant long-term growth opportunity.
“Bangladesh has a growing economy and a large population, but insurance penetration remains very low,” he said.
Less than 5 per cent of Bangladesh’s population has life insurance coverage, while insurance penetration remains between 0.4 per cent and 0.5 per cent of gross domestic product.
Comparable figures in India range from 2.8 per cent to 4.2 per cent of GDP, with life insurance coverage estimated at 25 per cent to 30 per cent of the population.
Softlogic Life has emerged as one of Sri Lanka’s fastest-growing insurers, occupying the second position in its domestic market, and its technology-driven operating model could be replicated in Bangladesh.
Diamond Life Insurance Chairman Riad Mahmud declined to comment on the proposed acquisition.
He, however, said the company has operated in compliance with regulations for more than a decade, at a time when parts of Bangladesh’s life insurance industry have been affected by irregularities and fund misappropriation.
The planned acquisition would mark Softlogic’s second major attempt to expand into Bangladesh.
In 2022, the group moved to acquire retail chain Agora, but the transaction did not proceed as Bangladesh faced an acute foreign exchange shortage during the economic crisis.
Founded in 1991, Softlogic Holdings PLC is one of Sri Lanka’s largest diversified conglomerates with operations spanning insurance, healthcare, retail, financial services, technology, hospitality and automotive distribution.
Its healthcare arm operates the Asiri hospital network, while its retail business includes the Glomark supermarket chain and franchise rights for international brands including Nike, Levi’s, Burger King and Baskin-Robbins.
Beyond Sri Lanka, the group has investments in healthcare technology in Australia and operates selected technology and retail distribution businesses across South Asia.
Pathirage said Bangladesh remains a strategic market for the group beyond insurance.
His company wants to attract Bangladeshi patients, who are spending several billion dollars abroad for treatment, to Sri Lanka.
“We also want to acquire a top hospital in Bangladesh,” he added.
