Fitch withdraws Sri Lankan Insurers’ National Long-Term Ratings

Nov 30, 2018 (LBO) – Fitch Ratings has affirmed and simultaneously withdrawn the National Long-Term Ratings of all rated Sri Lankan insurers as the ratings are no longer considered by Fitch to be relevant to the agency’s coverage because the entities have not issued any debt.

The rating agency, however, said the issuers’ existing National Insurer Financial Strength (IFS) Ratings are unaffected.

KEY RATING DRIVERS

Prior to the withdrawal, the National Long-Term Ratings were affirmed with Stable Outlooks as there have been no significant changes in the credit profiles of the rated insurers in Sri Lanka since the previous rating actions on the insurers in 2018.

Fitch, however, said it continues to rate the insurers with the following IFS Ratings:
– Sri Lanka Insurance Corporation Limited:
IFS Rating ‘B+’, National IFS Rating ‘AA+(lka)’ with Stable Outlooks affirmed on 9 July 2018
– National Insurance Trust Fund Board:
National IFS Rating ‘AA-(lka)’ with Stable Outlook affirmed on 6 September 2018
– People’s Insurance PLC:
National IFS Rating ‘A+(lka)’ with Stable Outlook assigned on 28 February 2018
– HNB Assurance PLC:
National IFS Rating ‘A(lka)’ with Stable Outlook affirmed on 19 March 2018
– HNB General Insurance Limited:
National IFS Rating ‘A(lka)’ with Stable Outlook affirmed on 19 March 2018
– Continental Insurance Lanka Limited:
National IFS Rating ‘A(lka)’ with Stable Outlook affirmed on 27 March 2018
– Co-Operative Insurance Company Limited:
National IFS Rating ‘BBB+(lka)’ with Stable Outlook assigned on 6 September 2018

RATING SENSITIVITIES
Not applicable as the ratings have been withdrawn.

FULL LIST OF RATING ACTIONS
Fitch has affirmed and withdrawn the following ratings:
Sri Lanka Insurance Corporation Limited
– National Long-Term Rating at ‘AA+(lka)’
National Insurance Trust Fund Board
– National Long-Term Rating at ‘AA-(lka)’
People’s Insurance PLC
– National Long-Term Rating at ‘A+(lka)’

HNB Assurance PLC
– National Long-Term Rating at ‘A(lka)’
HNB General Insurance Limited
– National Long-term Rating at ‘A(lka)’
Continental Insurance Lanka Limited
– National Long-Term Rating at ‘A(lka)’
Co-Operative Insurance Company Limited
– National Long-term Rating at ‘BBB+(lka)’

The Rating Outlooks are Stable.