The insurance firm’s rating also takes into account Fitch's expectation of support from Hatton National Bank PLC ('AA-(lka)'/Stable), if required.
HNB Assurance is 60.0 percent owned by HNB and is strategically important to its parent in providing additional product range to its customer base and expanding its bancassurance channel.
Regulatory solvency ratios improved to 2.89x and 3.15x for life and non-life businesses, respectively, in 2011 (2010: 1.13x and 2.01x) following a rights issue during the year.
These ratios are in line with peers and supported by the company's healthy profitability and conservative investment policies, Fitch said in a release.
Although the solvency ratios are likely t