Aviva has bought a 51% stake in Eagle Insurance, the third largest insurer in Sri Lanka for £15m.
Eagle is a composite insurer, with life, general insurance and asset management operations and a 20% share of the Sri Lankan life insurance market on a gross written premium basis, Aviva said.
In addition, Aviva said Eagle has entered into a bancassurance agreement with National Development Bank, Sri Lanka's biggest development bank and Eagle's other major shareholder.
The bancassurance agreement with NDB is for both life and general insurance.
Aviva has acquired its stake by buying a majority shareholding in Eagle's immediate holding company, NDB Finance Lanka (Pvt) from Capital Development & Investment Co.
Philip Scott, executive director of Aviva International, said: "This strengthens our position in the Indian sub-continent and offers good opportunities for growth... We will bring our bancassurance experience from India to become the pioneer for bancassurance in Sri Lanka, with the consequent first-mover advantage."
