Colombo, May 14, 2009: Eagle Insurance PLC’s second-largest shareholder NDB Bank, through its subsidiary Capital Development & Investment Company (CDIC) will acquire the controlling stake in Eagle Insurance’s fully owned subsidiary, Eagle NDB Fund Management Company (ENDB) subject to receiving relevant regulatory approvals. Aviva International Holdings through Aviva NDB Finance Lanka Private Limited (ANFL) will remain as ENDB’s indirect shareholding partner with a stake of 49%.
With this acquisition CDIC will own a direct and indirect shareholding representing 51% of the issued share capital of ENDB, on the basis that CDIC shall have the effective control of ENDB. CDIC, a subsidiary of NDB, is the NDB Group’s strategic investment arm.
The Eagle NDB Fund Management Company has been in existence since 1991 and is one of the largest licensed asset management companies in the country which manages insurance funds, provident funds, pension funds, endowment funds, and unit trusts with investments in equity and fixed income instruments. Through this acquisition it is believed that the ENDB clientele will now be well positioned to benefit from the synergies of the NDB Group, one of the fastest growing financial conglomerates in Sri Lanka and Aviva’s expertise which draws on the best of products, technologies and capabilities globally.
"Prudent wealth management is the foundation of a healthy economy, may it be of a company or of an individual." said Eran Wickramaratne, Chief Executive – NDB Bank. "Rather than encouraging the pursuit of short-term benefits, our wealth management solutions will offer a range of products that will encourage long-term benefits. We at NDB Group through wealth management solutions aspire to offer our customers a wider selection of products that are designed specially for the local market, using global expertise, innovation and technology"
Managing Director, Eagle Insurance, Deepal Sooriyaarachchi stated "This arrangement shows the greater commitment of our principal shareholders towards infusing their expertise to further develop and provide greater impetus to the Asset Management Business. This in turn, will benefit the valued clientele of ENDB and primarily the Eagle Insurance policyholders and provide the opportunity for the NDB Group to offer wealth management solutions to the Sri Lankan Market."
Aviva is the world’s fifth largest insurance group, serving over 50 million customers across Europe, North America and the Asia Pacific and has formidable expertise in the areas of asset management. Aviva’s main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £51.4 billion and funds under management of £381 billion as at 31 December 2008. Aviva is the largest insurance services provider in the UK and one of the leading providers of life and pensions products in Europe.
Aviva entered into the Sri Lankan market by acquiring the controlling stake in Eagle Insurance. The Fund Management arm of NDB Group (ENDB) will be able to leverage the global expertise of Aviva and deliver innovative services and investment solutions. It will continue to be managed by a team of highly qualified professionals who are among the most experienced in the industry, backed by one of the most sophisticated fund management systems in the country.,