26 September 2016 12:02 am
The board of directors of Merchant Bank of Sri Lanka & Finance PLC (MBSL) has decided to divest its interest in composite insurer, MBSL Insurance Company Limited, in full, MBSL said in a stock exchange filing.
As at June 30, 2016, MBSL held 84.12 percent of MBSL Insurance. MBSL Insurance provides general and life insurance solutions. But the company is currently in non-compliance with the solvency margin (non-life insurance), segregation of life and non-life business and the listing requirements stipulated by the industry regulator, the Insurance Board of Sri Lanka through the Insurance Industry Act No 43 of 2000.
According to MBSL annual report, MBSL Insurance incurred a loss of Rs.109 million for the year ended December 31, 2015 against a loss of Rs.53 million in the previous year.
The accumulated losses of the company as at December 31, 2015 stood at Rs.743 million against Rs.633 million a year ago.
The company’s net assets and stated capital as at December 31, 2015 were Rs.333.5 million and Rs.1.08 billion, respectively.
According to the statement of solvency prepared by the management of MBSL Insurance, the solvency ratios of non-life Insurance business as at December 31, 2015 stood at 0.41 against previous year’s 1.18.