Fitch affirms Continental Insurance Lanka at ‘A’

Tuesday, 24 May 2016 00:04 - - {{hitsCtrl.values.hits}}

Move commensurable with its capitalisation, market position and performance

As the first insurance company to be assigned with a National Insurer Financial Strength Rating and National Long-Term Rating of ‘A-(lka)’ within the first five years of operations, Continental Insurance Lanka Ltd. (CILL) established itself as a force to reckon with, within the intensely competitive non-life insurance segment in 2014.

CILL announced that Fitch Rating Lanka has affirmed the A-(lka) rating on 18 May, with a stable outlook. The rating reflects CILL’s satisfactory capitalisation, relatively short operating history and modest market share. The recent capital infusion by its parent, Distilleries Company of Sri Lanka PLC (DCSL) has also been taken into account in affirming the rate.

Incorporated as a non-life insurer in 2010, CILL has recorded above sector growth consecutively in 2014 (31%) and 2015 (30%), claiming a approximate 4% of the segment’s Gross Written Premiums.

Commenting on the rating, CILL Managing Director Chaminda De Silva revealed that the company’s Risk Based Capital Ratio stands at 308%, in comparison to the regulatory minimum requirement of 120% and that the company expects to maintain the ratio at around 200%.

He also elaborated that the unprecedented growth and the service standards maintained by the company is a reflection of the financial strength, stability and the unwavering support extended by the parent company DCSL, which stands as a milepost of success, in its own right. The AAA (lka/Stable) rating of DCSL, has given CILL added strength and security to spearhead its ambitious goals, which would pave the way for the company to become the No. 1 insurance provider in South Asia.