Lankapage Logo CP 22 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Fitch affirms People’s Insurance at ‘A+(lka)’; Outlook Stable
Mon, Oct 25, 2021, 10:09 am SL Time, ColomboPage News Desk, Sri Lanka.

Oct 25, Colombo: Fitch Ratings has affirmed Sri Lanka-based People’s Insurance PLC’s National Insurer Financial Strength (IFS) Rating at ‘A+(lka)’. The Outlook is Stable.

KEY RATING DRIVERS

The affirmation reflects the insurer’s ‘Moderate’ business profile compared with other Fitch-rated insurers in Sri Lanka and its satisfactory capital position as well as financial performance. The Stable Outlook reflects our expectation of a normalisation in the insurer’s capital and earnings metrics after benefiting from low insurance claims due to mobility restrictions caused by the Covid-19 pandemic.

People’s Insurance’s regulatory risk-based capital (RBC) adequacy ratio strengthened to 282% in 1H21 and 304% in 2020, from 248% in 2019 (2018: 237%), buoyed mainly by the low motor insurance claims following Covid lockdowns. The agency expects People’s Insurance to maintain the RBC ratio above 220%, well above the regulatory minimum of 120%. Even so, the ratio will moderate gradually from current levels over the medium term as insurance claims recover from the atypically low levels in 2020.

Financial performance, measured by the combined ratio, improved to 83% in 2020 from 97% in 2019 (2018: 96%), resulting mainly from the reduced motor claims following Covid lockdowns. The combined ratio moderated gradually to around 91% in 1H21, and we expect a further normalization in the near term, as the frequency of motor claims is likely to increase with the relaxation of travel restrictions.

Fitch expects People’s Insurance to maintain the combined ratio below that of the industry in the medium term, helped by a low-cost window-office distribution strategy that keeps the expense ratio well under control. People’s Insurance operates mainly through more than 140 window offices placed inside the branches of its immediate parent, People’s Leasing & Finance PLC (PLC, A+(lka)/Stable), and its ultimate parent, People’s Bank (Sri Lanka) (AA-(lka)/Stable).

Full Report

 

ColomboPage - Recent 10 Stories ::
STF launches special 24-hour operation island wide to nab organized criminals and drug traffickers
-- [2 minutes ago]
The car toppled into the Mahaweli River recovered after a 14 hour operation
A special flight to bring home the Sri Lanka women’s cricket team stuck in Zimbabwe
Coronavirus update: 742 new COVID-19 cases identified Sunday, total rises to 562,520
Sri Lanka should be prepared to face the omicron coronavirus, SLMA warns
Bread prices up by Rs. 10 from midnight today
India, Sri Lanka, Maldives navies conduct joint exercise on maritime security
Foreign Minister reiterates Sri Lanka’s commitment to combat Gender-Based Violence
Sri Lanka reports 27 Covid-19 deaths on Sunday, toll rises to 14,305
Tourists from six banned countries have not arrived in Sri Lanka, Minister affirms

Copyright © 2000, 2020 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.