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Sri Lanka Insurance emerged as the only insurer in Sri Lanka to maintain National Insurer Financial Strength (IFS) rating of ‘AAA (lka) with a Stable Outlook amidst the turbulent times, proving the prowess and stature of the insurance giant.
The rating reflects the favourable business profile, strong financial performance and capitalisation of the company maintained over time within a challenging business environment. The pioneer of the insurance industry is shifting paradigms and setting benchmarks in the industry with AAA (lka) rating which is the highest score in the national rating scale.
Sri Lanka Insurance is the only insurer in Sri Lankan Insurance industry to secure this highest achievement in terms of financial stability which bear witness to the unmatched protection provided to the policyholders. This is a reflection of Sri Lanka Insurance’s superior ability to meet the long term insurance obligations to its policyholders despite challenges times.
Fitch assesses SLIC’s business profile as ‘Favourable’ compared with other Sri Lankan Insurance companies due to the impeccable business profile comprised with leading business franchise, well-diversified participation in business lines across life and non-life insurance sectors, stable business focus on established product lines and its favourable domestic operating scale making Sri Lanka Insurance the only Insurer to secure the robust financial rating and for the second consecutive time.
Sri Lanka Insurance Chairman Jagath Wellawatta said “Sri Lanka Insurance being backed up by the strong Government ownership has been in the industry for the last 58 years. Despite any negativity and challenges in the sector, the company has stood tall and managed to achieve resilient outcome while building trust among its customer base. For Sri Lanka insurance customers, the AAA (lka) rating is an affirmation to our unparalleled financial stability and impeccable insurance expertise which makes us superior in the industry.”
Sri Lanka Insurance CEO Chandana L. Aluthgama said: “In the light of the COVID-19 outbreak we were compelled to operate in a volatile economic environment. As the national insurer we had to come forward and fulfil our responsibility for this national emergency with our prudent risk management policies and strategic practices. Given the current economic outlook and market challenges, this is a great achievement and honour for the organisation.
“Fitch’s assessment is based on SLIC’s diverse portfolio across the life and non-life sectors, stable business focus and operating scale. This also comes down to our financial strength and fiduciary management practices.”
SLIC has continued to maintain its Life & General regulatory risk-based capital (RBC) ratios (A measurement of its capitalisation) were 434% and 208% respectively, which is well over the industry average and also above regulatory minimum of 120%. The company has also consistently maintained its non-life combined ratio below 100% for the previous 5 years which attributes to the Company’s scale advantage and prudent underwriting practices.
The State-owned insurance giant is further strengthened by the excellent financial outlook and continues to serve the nation with the most experienced technical knowledgebase in the country, the largest asset base of over Rs. 205 billion, the largest life fund of the industry in excess of Rs. 116 billion, Sri Lanka’s highest life insurance bonuses declared in every year and Rs. 1.5 billion Life and General Insurance claim settlement per month.
