June 06, Colombo: Fitch Ratings Lanka has upgraded Sri Lanka Insurance Corporation’s (SLIC’s) national long-term rating and national insurer financial strength ratings to ‘AA(lka)’ from ‘AA-(lka)’, and the outlooks are stable, StockMarketWire reported.
According to Fitch, the ratings reflect SLIC’s improved risk-based capital position over the last two years, benefited by the improved operating and macro-economic environment as well as its improved profitability in 2010.
The ratings further reflect SLIC’s large asset base, strong presence in life and non-life markets and expected future equity gains. The ratings factor in Fitch’s expectations of continued support from the Sri Lankan government (GOSL), specifically in the event of capital requirement, given its 99.9% ownership in SLIC and SLIC’s perceived strategic importance.
Fitch expects that SLIC will maintain its strong operational and financial performance with emphasis on profitability, as well as the company’s ability to gradually crystallize the unrealized equity gains on its balance sheet over the medium term while maintaining market share.