Amana Takaful announces Rs. 1 bn rights issue to strengthen capital base

Amana Takaful PLC has announced plans to raise over Rs. 1 billion through a Rights Issue of shares to strengthen the company’s equity base and improve its Capital Adequacy Ratio (CAR). 

The Board of Directors, following a decision on February 5, 2026, recommended the issue to comply with the Risk-Based Capital framework introduced by the Insurance Regulatory Commission of Sri Lanka. The move is currently subject to approval in principle by the Colombo Stock Exchange (CSE) and shareholder approval at a General Meeting.

Under the proposed Rights Issue, the company intends to issue 52,854,857 new Ordinary Voting Shares. These shares will be offered to existing shareholders in the proportion of three new Ordinary Voting shares for every 14 existing Ordinary Voting shares held. The shares are priced at Rs. 19.00 each, with the total consideration expected to be approximately Rs. 1.004 billion.

This capital infusion comes against a backdrop of strong financial performance for the insurer. According to the interim financial statements for the nine months ended September 30, 2025, the Amana Takaful Group reported a net profit of Rs. 953 million, a 5 percent increase compared to the same period in the previous year. The Group’s total assets also witnessed significant growth, reaching Rs. 23 billion as of September 2025, up from Rs. 19.2 billion at the end of 2024. The company has been actively expanding its footprint, recently celebrating 25 years of operations.

The impact of this Rights Issue extends beyond immediate regulatory compliance. By bolstering its equity base, Amana Takaful PLC aims to solidify its financial standing within the competitive insurance landscape. The improved Capital Adequacy Ratio is expected to provide the necessary buffer to support the company’s strategic growth initiatives and enhance its ability to underwrite larger risks, ensuring long-term stability for its policyholders and stakeholders.