ISLAMABAD: VEON Group, Jazz’s parent company, has expressed its intentions to acquire TPL Insurance Limited to expand its footprint in Pakistan’s financial sector.
According to a notice to the Pakistan Stock Exchange (PSX) on Thursday, TPL announced that it has received an intention from VEON Group Holding Company to potentially acquire shares and control of the company beyond the threshold prescribed under section 111 of the Securities Act 2015.
“The intention remains subject to requisite regulatory approval, due diligence, negotiations with sellers, and execution of a definitive agreement. This notice has also been shared with the regulator, the Securities and Exchange Commission of Pakistan,” TPL’s notice read.
The development is consistent with recent statements by Jazz CEO Aamir Ibrahim. In the country’s financial sector landscape, the insurance sector is one of the potential areas that requires penetration to achieve full dividends, with the increasing trend of digitization in the case of Pakistan.
The government is executing an ambitious plan for promoting the digital economy in the country. Ibrahim has also been promoting digital payments in Pakistan through various initiatives, helping push the prime minister’s agenda of a digital economy through the adoption of Raast QR codes.
In Pakistan, VEON operates through Jazz, JazzCash and Mobilink Microfinance Bank, collectively serving more than 100 million customers across financial services, entertainment, connectivity and digital platforms.
In a country where traditional insurance is often viewed with scepticism and considered a luxury rather than a necessity, insurance penetration remains below 1.0 per cent of GDP. Jazz has been at the forefront of insurtech innovation in Pakistan. Its pioneering efforts have played a crucial role in bridging this insurance gap.
With 10.5 million active insurance policies, Jazz, through its FikrFree Insurance and Healthcare Marketplace, offers over 30 insurance products from multiple providers, ranging from health and handset insurance to bike coverage.
Industry experts estimate that Pakistan’s microinsurance market could exceed $2 billion if challenges related to awareness, trust and affordability are effectively addressed. The growth potential is enormous in a country with over 247 million people, the vast majority of whom have never had any form of insurance protection, they concluded.