John Keells says that 78 per cent shares of the General Insurance business of Union Assurance Insurance Limited belonging to the John Keells Group has been sold for nearly Rs. 3.5 billion to Fairfax Asia Limited.

The company entered into this agreement last July.

Around 22 per cent of the balance insurance business of the company will be held by Union Assurance.

This agreement has been entered into in compliance to the regulatory conditions in Sri Lanka that an insurance company should segregate its Life and General insurance businesses.

Union Assurance’s overall valuation of the General Insurance business is approximately Rs. 4.5 billion.

Fairfax Asia Limited is a subsidiary of the Canadian financial services group Fairfax Financial Holdings Limited.

This transaction was expected to close by the first quarter of 2015, said Union Assurance.

Union Assurance adds that it would continue to retain ownership of its Life Insurance business in its entirety.