Fitch upgrades four insurers

Fitch Ratings has upgraded the National Insurer Financial Strength (IFS) Ratings of four Sri Lankan insurers following the recent sovereign upgrade and recalibration of the agency’s Sri Lankan national rating scale. At the same time, Fitch has affirmed the National IFS of three Sri Lankan insurers.

The recalibration reflects changes in the relative creditworthiness of Sri Lankan issuers after Fitch upgraded Sri Lanka’s Long-Term Local-Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘CCC-’ on 20 December 2024. Fitch typically does not assign Outlooks to sovereigns with a rating of ‘CCC+’ or below.

National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk. Sri Lanka’s national scale ratings are denoted by the unique identifier ‘(lka)’. Fitch adds this identifier to reflect the unique nature of the Sri Lankan national scale.

National scales are not comparable with Fitch’s international rating scales or with other countries’ national rating scales.

Insurers upgraded

• Continental Insurance Lanka Limited (CILL) to ‘A(lka)’/Positive from ‘A-(lka)’/Positive;
• People’s Insurance PLC to ‘A(lka)’/Stable from ‘A-(lka)’/Stable;
• HNB Assurance PLC to ‘A(lka)’/Stable from ‘A-(lka)’/Stable;
• HNB General Insurance Limited to ‘A(lka)’/Stable from ‘A-(lka)’/Stable; 

Insurers with affirmed National IFS

• RatingsNational Insurance Trust Fund Board (NITF) at ‘BBB(lka)’/Stable
• Co-operative Insurance Company PLC (CICPLC) at ‘BB(lka)’/Stable;
• Construction Guarantee Fund (CGF) at ‘BB(lka)’/Stable.