LAHORE: A European investment fund has entered into an agreement to acquire a significant minority stake in a Lahorebased general insurance company offering agriculture insurance to over 100,000 farmers in Pakistan.

An announcement issued on Saturday said the InsuResilience Investment Fund, set up by the German Development Bank Kf W and managed by Switzerlandbased Impact Investment Manager BlueOrchard Finance, will acquire 25 per cent stake in Asia Insurance Company Ltd.

According to the agreement, the fund will subscribe to a rights issue in the insurance company for acquiring equity stake in the company post-equity injection, taking the company`s total equity to approximately Rs1.04 billion (approx $9.7 million).

Asia Insurance operates in agriculture, livestock and farm implements micro-insurance with about 44pc of its gross written premium in 2016 coming f rom these areas.