"We also want to increase our capital to meet Insurance Board of Sri Lanka (IBSL) rules."

Gunewardene said Ceylinco Insurance was already selling in Maldives, Oman, Kuwait, Dubai, Bahrain, Saudi Arabia, Qatar, Nepal, Bangladesh, Mauritius and Philippines.

Its overseas insurance business was done with local partners in each country who knew the ground conditions well and had individual strengths.

Gunewardene said Ceylinco Insurance's 'on the spot' claim payments which started with its motor business had transformed the industry, and foreign insurers were inviting the firm to share its experience.

Under the 'on the spot' scheme, a claims assessor visits the scene of the accident and immediately offers compensation cutting out the need for time consuming police reports.

Ceylinco would also use funds raised from the share issue to float its new general insurance health scheme which allows policy holders get unlimited out-patient medical advice by paying 500 rupees a year at centres to be set up nation-wide.

Gunewardene said Ceylinco now had 37 percent of the insurance business in the country. In 2007, the firm reported 17.5 billion rupees in gross written premiums.

Finance director Nihal Pieris said the non-voting shares were offered at 175 rupees while the market price of an ordinary share was 220 rupees and net asset value of a share was 224 rupees.

"The new shares are coming at a discount to net assets," he said.

The firm had 4.5 billion in net assets and 32 billion in gross assets. It was issuing 8.5 million new shares to existing and new shareholders with the subscription list opening on June 20.

The company now had 20 million shares outstanding and 1,013 million in net profits in 2007, with earnings per share of 50.78 rupees before the issue.