June 24, Colombo: Endorsing Sri Lanka Insurance Corporation (SLIC) as the trusted insurer of the nation Fitch Rating Services has upgraded SLIC's national Insurer Financial Strength (IFS) rating to 'AAA(lka)' from 'AA+ (lka)' with a Stable Outlook.
The upgraded rating reflects the favorable business profile, strong financial performance and capitalization of the company maintained over time within a challenging business environment. AAA (lka) rating is the highest score in the national rating scale.
SLIC is the only insurer in the Sri Lankan Insurance industry to secure this highest achievement in terms of financial stability. This is a reflection of SLIC's superior ability to meet the long-term insurance obligations to its policyholders.
SLIC's impeccable business profile comprised with leading business franchise, well-diversified participation in business lines across life and non-life insurance sectors, stable business focus on established product lines and its favourable domestic operating scale making SLIC the only insurer with the robust financial rating. SLIC is on an accelerated work plan according to its three-year strategic plan, which in process improvement and product innovation.
SLIC has continued to maintain its life and general regulatory risk-based capital (RBC) ratios (A measurement of its capitalization) at 437% and 200% respectively, which is well over the industry average and also above regulatory minimum of 120%. The company has also maintained its non-life combined ratio below 100% which attributes to the company's prudent underwriting practices.
SLIC, the State-owned insurance giant, is further strengthened by the excellent financial outlook and continues to serve the nation with the most experienced technical knowledgebase in the country, an asset base of Rs. 197 billion and a life fund of Rs.105 billion which is the largest in the industry.