Sri Lanka's Softlogic Life buys 60% stake in Diamond Life

Sri Lanka's Softlogic Life has acquired a 60 percent stake in Bangladesh's Diamond Life Insurance, marking the country's first-ever life insurance acquisition.

The deal also marks Softlogic's first international expansion, according to a press release issued today.

Tap Here to Add The Daily Star As A Trusted Source

The Sri Lankan company signed a share purchase agreement to acquire the stake for nearly $1.9 million (Tk 23.4 crore), according to a disclosure filed with the Colombo Stock Exchange on June 18. 

Softlogic Life said the deal marks its entry into one of the region's fastest-growing insurance markets.

It said insurance penetration in Bangladesh remains low relative to the size and potential of its economy, even as a rapidly expanding middle class and rising financial awareness create growing demand for products that protect families and build long-term financial security.

Life insurance accounted for only 0.24 percent of Bangladesh's GDP in 2024, down from 0.27 percent a year earlier. The number of life insurance policies also fell 6 percent year-on-year to 70.89 lakh in 2024, according to the Insurance Development and Regulatory Authority (IDRA).

Diamond Life Insurance began operations in 2014 with an authorised capital of Tk 100 crore and a paid-up capital of Tk 18 crore.

Softlogic began operations in 1999 and is now the second-largest life insurer in Sri Lanka, holding an 18.4 percent market share. Formerly known as Asian Alliance Insurance PLC, the company reported gross premiums of Rs 40.1 billion (Tk 1,467 crore) at the end of 2025, according to its annual report.

The company is now the third foreign insurer in Bangladesh, after the US-based MetLife and India’s Life Insurance Corporation (LIC).