Asian Alliance terminates Fitch rating agency agreement

Wednesday, 31 December 2014 00:22 -     - {{hitsCtrl.values.hits}}

Asian Alliance Insurance Plc terminated its rating agency agreement with Fitch Ratings Lanka Ltd. on 28 October 2014 as Fitch insisted on reviewing Asian Alliance’s rating due to a rating revision of ultimate parent Softlogic Holdings Plc (SHL). SHL was subsequently rated A- by Lanka Rating Agency Ltd, formerly RAM Ratings (Lanka) Ltd. A rating is not a mandatory requirement for insurance companies in Sri Lanka and Asian Alliance had obtained both local and international ratings in order to demonstrate best practice. Asian Alliance is in contact with leading international rating agencies to obtain an international rating, a process which is scheduled to be completed in four months. Asian Alliance is enjoying a hugely successful year and is set to close 2014 on a high note. The company recorded PAT of Rs. 532 million as at end September 2014 with the impressive result coming about on the back of Life premiums growth of 21% for the period at Rs. 2.2 billion, with the absolute increase of Rs. 374 million being amongst the highest in the industry. Total premiums for the first nine months of the year were Rs. 3.4 billion with General insurance premiums at Rs 1.3 billion and profits after tax were Rs. 511 million for Life business and Rs. 21 million for the General insurance business. The first half performance of the company stands out from the rest of the industry that saw overall growth rates of 8% for Life and 2% for General.