Mar 26, 2014 (LBO) – Sri Lanka’s Janashakthi Insurance was ready to split its life and general businesses, later list the second unit and also move to a risk based capital regime (RBC), an official said. Managing Director Prakash Schaffter said the businesses will be split later this year.
The existing listed Janashakthi Insurance will be a holding company with general insurance to spun-off as a subsidiary. It will also be later listed in the stock market through a sell-down.
Sri Lanka’s insurance regulation will move into a risk based capital regime from the current solvency based rules by 2016. Janashakthi had already voluntarily participated in a ‘road test’ by the Insurance Board of Sri Lanka.
“We are more than confident that we will be able to meet the required standards when the RBC regime is implemented 2016,” Schaffter told reporters in Colombo.
Sri Lanka’s composite insurers are required to split their businesses and list under a regulatory direction.
Janashakthi itself started as 20 years ago with separate life and general unit and grew rapidly, also acquiring a smaller state insurer that was privatized to become a composite unit.
In 2013 the firm posted gross wr