SL Insurance receives Fitch Rating upgrade to AAA (lka) for strong financial stability
View(s):Fitch, endorsing Sri Lanka Insurance (SLI) as the trusted insurer of the nation, has upgraded Sri Lanka Insurance’s Insurer Financial Strength (IFS) 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. AAA (lka) rating is the highest score in the national rating scale.
“SLI is the only insurer in Sri Lankan insurance industry to secure this highest achievement in terms of financial stability. This is a reflection of its superior ability to meet the long term insurance obligations to its policyholders,” the company said in a media release.
SLI’s business profile comprised with leading business franchise, well-diversified participation in business lines across life and non-life insurance sectors, stable business focus on established product lines and its favourable domestic operating scale makes the company the only insurer with the robust financial rating. SLI is on an accelerated work plan according to its 3 year strategic plan, which is in process improvement and product innovation.
It has continued to maintain its Life and General regulatory risk-based capital (RBC) ratios (a measurement of its capitalisation) at 437 per cent and 200 per cent respectively, which is well over the industry average and also above regulatory minimum of 120 per cent.
“SLI is further strengthened by the excellent financial outlook and continues to serve the nation with the most experienced technical knowledgebase in the country, an asset base of Rs. 197 billion and a life fund of Rs.105 billion which is the largest in the industry,” it said.