NITF swings to loss in 1H as reinsurance subsector weakens: CBSL

Friday, 14 November 2025 00:00 - - {{hitsCtrl.values.hits}}

Sri Lanka’s reinsurance sector posted a sharp reversal in performance in the first half of 2025, driven by a deterioration in the financial results of the National Insurance Trust Fund (NITF), the Central Bank said in its Financial Stability Review 2025 released in October.

According to the report, NITF, the sole entity representing the reinsurance segment, moved from a profit before tax (PBT) of Rs. 1 billion in the first half of 2024 to a loss of Rs. 361.92 million in the corresponding period of 2025. The decline was reflected across core underwriting operations as well.

Underwriting profit of Rs. 746.4 million recorded in the first half of 2024 fell to a loss of Rs. 538.3 million by end-June 2025, the Central Bank said. The review notes that this deterioration signals stress within the reinsurance segment, which plays a critical role in absorbing large-scale risks across the insurance industry.

The Central Bank’s findings come amid broader efforts to strengthen sector-wide resilience and ensure adequate capital buffers across insurers, as underwriting and investment conditions continue to shift. The report said the performance of the reinsurance subsector will remain an important factor in assessing the overall stability of Sri Lanka’s insurance industry in the period ahead.