TPLI’s acquisition of target company approved

LAHORE: On April 26, the Pakistan Stock Exchange (PSX) announced that TPL Insurance Limited (“TPLI”), a subsidiary of TPL Corp Limited (“the Company”), had accorded its approval for the acquisition of operations of a significant insurance player in the Pakistani market, Target Company.

This will be done through the scheme of amalgamation, to be sanctioned through the High Court. After its sanctioning, the net assets of the Target Company will be merged into the TPLI. Both the sanction and transaction are expected to be completed by December 31, 2023. 

TPLI was launched  as a Life and Health insurance company in Pakistan. It launched innovative Insurance products to increase its market share all over the country through creative marketing tactics. 

TPL Insurance is also part of a larger corporation, TPL Corp, the holding company. (In 2017, TPL Trakker Limited was renamed TPL Corp Limited, which now controlled TPL Insurance and so on, while the data location and tracking services were incorporated into a separate company, called TPL Trakker Ltd.)

“TPL-Life seeks to confront deep-rooted hindrances in the sector – low public confidence, coupled with a deep-seated mistrust of insurance companies,” said its Chief Executive Officer (CEO) Faisal Shahzad Abbasi.  “The company seeks to change expectations of the public of insurers, and create greater awareness of how insurance operates elsewhere in the world,” he said in an exclusive interview with the Profit Magazine.

The group had acquired Asia Care Health & Life, a local insurance company, in July 2016 and since then to get penetration in the Pakistani market the management was working on different products for the customers.

“The company has launched health and life insurance products, and made these available in retail outlets, the company’s website/mobile app and banking channels etc. This is just the beginning of our efforts to bring in the much-needed change in life insurance sector. With time, we will gain healthy market share and carve a niche for ourselves with our exclusive offerings and services,” said the CEO to Profit in 2016.

Previously, in a notice issued to the Pakistan Stock Exchange (PSX) on October 20 2020, TPL Insurance said they had accorded their approval for an equity investment by DEG (a German development finance institution) of 19.9%, by way of fresh issuance of ordinary shares other than by way of rights issue.

TPLI’s acquisition of Target Company is another step ahead.

 

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