Sri Lanka Insurance Corporation ‘AAA’ rating confirmed: RAM

Oct 24, 2012 (LBO) – RAM Ratings has confirmed an ‘AAA’ rating for Sri Lanka Insurance Corporation, on its competitive position, state ownership and its systemic importance as the second largest premium collector.

RAM Ratings Lanka reaffirms Sri Lanka Insurance Corporation
Ltd’s ratings at AAA/P1

RAM Ratings Lanka has reaffirmed Sri Lanka Insurance Corporation Ltd’s
(SLIC or the Company) long- and short-term claims-paying ability ratings at
AAA and P1 respectively; the outlook on the long-term rating is stable. SLIC’s
ratings are upheld by it’s strong competitive position, financial flexibility derived
from state ownership, systemic importance as the country’s second largest
premium underwriter, and healthy capitalisation levels
SLIC is the oldest insurer in Sri Lanka and the second-largest in terms of
premiums underwritten; the Company accounted for 23% of the industry’s
composite gross written premiums (GWP) as at end-December 2011. Further,
it is the largest insurer in terms of assets, accounting for 39% of the industry’s
asset base at the same date. Given SLIC’s systemic importance and its
ownership by the Government of Sri Lanka (GOSL), RAM Rati