Sri Lanka reinsurer rated ‘AAA’ by RAM

Ishara S. Kodikara | AFP | Getty Images Sri Lanka Prime Minister Ranil Wickremesinghe, center, speaks to supporters at the prime minister's official residence in Colombo on December 16, 2018, after he was reappointed as prime minister by Sri Lanka's president, the same man who fired him from the job nearly two months ago.

Nov 08, 2010 (LBO) – Sri Lanka’s state-run National Insurance Trust Fund has been given a ‘claims paying ability’ rating of ‘AAA’ with a ‘stable’ outlook by RAM Ratings on the strength of state ownership and government related business. NITF had an expense ratio of 11.09 percent in 2009 which was the lowest in the industry.

It made profits of 3.3 billion rupees in 2009, up 15.32 percent from a year earlier.

The Company’s investments remain conservative and are deemed low risk in line with its governing law which requires money to be put in government securities or equity in companies in the health sector.

RAM said 99.89 percent of investments were in securities by end August 2010.

NTIF’s investment income ratio hit 34.60 percent in 2009 but RAM said with a lower inetrest rate regime, investment income will slow in the future.

The NITF is the only reinsurance company in the country and had 5.61 percent of insurance assets by end December 2009 and comes under the ministry of finance.

“The rating is firmly supported by business NITF derives from its state ownership, including mandatory reinsurance and the provision of General Insurance to public servants and government bodies,” RAM said.

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