Nov 19, 2009 (LBO) – RAM Ratings Lanka said it has lifted the Rating Watch with a negative outlook on Janashakthi Insurance and confirmed its BBB+ rating with a stable outlook. It said in a statement Janashakthi had improved its solvency margins with better investments.
“The reaffirmation of the company’s rating is reflective of its strong competitive position, improving underwriting results and enhanced investment portfolio.”
Janashakthi had been placed on Rating Watch in May 2009, following the suspension of its licence by the Insurance Board of Sri Lanka (IBSL) as the company’s solvency margins had dipped below the regulatory minimums.
This had arisen because the IBSL had ceased to recognise certain assets as admissible, including mortgage-backed loans, unlisted or unguaranteed corporate debts, and non-interest-bearing bank deposits.
RAM Ratings said the Rating Watch has now been lifted as Janashakthi has managed to raise its solvency margins above the regulatory floors, through a shift in its investment portfolio.
Janashakthi’s three-week licence suspension, beginning from 12 May 2009, was resolved in 15 days.
The rating agency said