Sri Lanka Insurance once again secures AA+ (by) Fitch Ratings

Monday, 6 August 2018 00:00 -     - {{hitsCtrl.values.hits}}

  • The first and only local insurer to be affirmed by Fitch Ratings for its financial strength and national long-term rating at AA+ (lka) with a stable outlook
  • Life Fund tops Rs. 100 billion, the highest in industry

Sri Lanka Insurance, the leading state insurance company was once again affirmed by Fitch Ratings at ‘AA+ (lka)’, for the company’s long-term financial sustainability. Sri Lanka Insurance has the highest ranking bestowed by Fitch Ratings among the nearly 30 insurance companies operating in Sri Lanka, including the foreign companies. The pioneer in the insurance industry in the country opened its doors in 1962 and has stayed relevant and ahead of the competition ever since. 

The company’s Life Insurance Fund is the largest Life Fund in the local insurance industry to date, which has topped the Rs. 100 billion marking. The much-awarded brand was also most recently recognised as the ‘Most Loved Insurance Brand’ in the island, while also being ranked in the top five of Most Loved Brands in Sri Lanka in the recently published 2018 Brands Annual.

The digital age is rapidly transforming the way many industries do business and also how they communicate and interact with customers and employees. In order to stay relevant in a fast-changing environment, it is important that businesses adapt to these changes and adapt them in ways that can improve processes, product innovation and communication. 

“We are proud of the AA+ (lka) ratings appointed by Fitch Ratings, that factors in Sri Lanka Insurance’s long track record, which includes our strong business profile, excellent financial performance and stellar capital position. Sri Lanka Insurance has a rich heritage of serving the people of this country for over 55 years and have maintained our strengths in this area. We have always put our customers first and we are currently undergoing transformations to serve our customers better. This involves us realigning our processes to cater to customers’ convenience especially in the line of Motor and Non-motor insurance. We aim to enable our customers by having our products and processes online for greater customer convenience,” said Sri Lanka Insurance Chief Executive Officer Chandana Aluthgama.

“We see that there is still much potential in the insurance industry in the country, with there currently being only 32.6% penetration in the Life Insurance category. Our Life Insurance Fund, which is the largest Life Fund in the local insurance industry to date, has topped Rs. 100 billion, marking another historical milestone as the leading insurer. This enables us to declare the highest returns in the industry to its Life policyholders, we are the only company to declare a guaranteed bonus year on year which has been built over the past five-and-a-half decades. To date Sri Lanka Insurance has declared over Rs. 50 billion to its Life policyholders since 2006, making it the most attractive Life policy in the market. The Sri Lanka Insurance Life products portfolio has also been revamped to meet the needs of the modern consumer, bringing in flexibility to its portfolio,” Sri Lanka Insurance Chairman Hemaka Amarasuriya added.

It has also invested significantly to improve IT infrastructure so that processes can be made more efficient.

Established in 1962, the Sri Lanka Insurance Corporation is the largest government-owned insurance company in Sri Lanka, with a managed asset base of over Rs. 193 billion and a Life fund of Rs. 100 billion, the largest in the local insurance industry.