In a recent public notice, Richard Pieris (RICH) group’s company secretaries Richard Pieris Group Services said that two new entities have been incorporated, named Arpico Insurance Ltd on June 22 and Arpico Financial Services Ltd on June 27.
The move came in the light of Softlogic Holdings PLC (SHL) announcing that its subsidiary Softlogic Capital was to acquire over 73% stake of Asian Alliance insurance PLC (AAIC) in which Richard Pieris group (RICH) also have a 25%, making it Richard Pieris’s associate insurance arm. Analysts point out that RICH will soon exit from AAIC if it starts operations of Arpico Insurance Ltd, whilst a major portion of Richard Pieris group’s insurance business that was placed at AAIC will now move to Arpico Insurance. In the lately released annual report of RICH, it was mentioned that the firm has subscribed for the rights issue of Asian Alliance Insurance PLC last year, making an additional investment of Rs.203 million to maintain its associate status in its insurance arm.
Market sources revealed that RICH Chairman Dr. Yaddehige incorporated an insurance arm titled “Arpico Insurance”, after losing the opportunity to buy a controlling stake of Asian Alliance Insurance (AAIC). It is also anticipated that Dr.Yaddehige will soon dispose Richard Pieris’ stake in AAIC.
Chairman Dr. Sena Yaddehige was not available to comment on Richard Pieris’s new move.