Aug 22, Colombo: Fitch Ratings Lanka has published Sri Lanka-based Asian Alliance Insurance's (AAIP) Insurer Financial Strength (IFS) Rating of 'B' with a Stable Outlook.
The agency has also published the National Insurer Financial Strength Rating and the National Long-Term Rating of 'BBB+(lka)', respectively.
Fitch Ratings said in a release today that AAIP's ratings reflect Fitch's expectation of operational assistance and synergistic benefits from its ultimate parent, Softlogic Holdings Plc (SHP; A-(lka)/Stable) based on its 41.54% effective ownership.
The ratings also reflect AAIP's modest but growing market share and its somewhat weak capitalization due to aggressive top line growth.
The company has a competitive advantage in tapping SHP's customer base in healthcare and vehicle leasing and in accessing its retail outlets and branches across the country.
AAIP has 36 branches and supplements non-life distribution by leveraging off 19 SHP outlets. The company expects to enhance its reach in Sri Lanka with a further 30 to 50 outlets by 2015.
Established in 1999, AAIP is a composite insurer accounting for less than 3% of industry assets at end-2012. In 2011, the company became a part of SHP, a diversified conglomerate.
Full text of Fitch Ratings release on Asian Alliance Insurance