Sri Lanka Insurance Corporation sees steep upturn

Oct 06, 2010 (LBO) – State-run Sri Lanka Insurance Corporation (SLIC), the island’s largest insurer by assets is seeing a steep increase in life and motor insurance premium collection and it is also expanding in to the former war-torn north and east of the island. SLIC has collected 9.5 billion rupees in gross written premium in the 9-months to September 2010 compared to 8.5 billion rupees for the entire year ending December 2009, chief executive Mohan de Alwis told LBO.

The firm made after tax profits of 890 million in 2009 and may earn about 1.5 billion in the current financial year, director Piyadasa Kudabalage said.

The unlisted firm has a large stock portfolio. By end December 2009 the firm was managing 72 billion rupees in assets. Its life insurance fund was 43 billion rupees.

But stock values have risen over 100 percent so far this year and SLIC is a key shareholder of major banks including Commercial Bank. SLIC has an insurance rating of AA- by Fitch and AAA by RAM Ratings.

Sri Lanka’s economy is estimated to have grown 8.5 percent in the second quarter of 2010.

SLIC said its life insurance business is growing around 24 percent this year and is on track to post premium of 6.0 billion rupees for 2010 up from 4.8 billion last year.