25 June 2019 12:02 am
Fitch Rating has upgraded state-owned insurance giant Sri Lanka Insurance’s (SLI) national Insurer Financial Strength rating to ‘AAA(lka)’, from ‘AA+ (lka)’, with a
Stable Outlook.
The upgraded rating reflects the favourable business profile, strong financial performance and capitalisation of the company maintained over time, within a challenging business environment.The AAA(lka) rating is the highest score in the national rating scale.
SLI is the only insurer in the Sri Lankan insurance industry to secure this highest achievement in terms of financial stability.
SLI said this is a reflection of its superior ability to meet the long-term insurance obligations to its policyholders.
SLI is currently on an accelerated work plan in line with its three-year strategic plan, which is aimed at process improvement and product innovation.
SLIC has continued to maintain its life and general regulatory risk-based capital ratios (a measurement of its capitalisation) at 437 percent and 200 percent, respectively, well over the industry average and also above the regulatory minimum of 120 percent.
SLI has also maintained its non-life combined ratio below 100 percent, which attributes to the company’s prudent underwriting practices.
SLI has an asset base of Rs.197 billion and a life fund of Rs.105 billion, which is the largest in the industry.