Unit Trust of Fiji has secured a 10 percent stake in Sun Insurance Company Limited, valued at $12 million.
UTOF CEO Vilash Chand told FijiLive that this strategic move aims to enhance the trust’s investment portfolio and strengthen its diversification efforts. The acquisition was carried out through a private placement of shares to institutional investors in anticipation of Sun Insurance’s forthcoming public listing.
Chand highlighted that Sun Insurance has been a strong player in the Fijian market for 25 years, providing comprehensive insurance services. The company aims to raise over $30 million through its private placement and subsequent public offering. The capital raised will be allocated to Sun’s property development projects, leveraging its extensive property portfolio in prime locations across the central and western regions.
UTOF Chairperson Lavinia Kaumaitotoya expressed enthusiasm about the investment, emphasizing that the inclusion of Sun Insurance in UTOF’s portfolio would strategically enhance diversification and contribute to long-term stability. She noted that the decision followed a thorough assessment of Sun Insurance’s performance over the past decade.
Kaumaitotoya also mentioned that Sun Insurance Limited is the third-largest general insurer in Fiji based on asset size and net earned premium.
Currently, UTOF manages a $450 million portfolio, which is expected to reach half a billion dollars by the end of this financial year.