Sri Lanka Insurance rating upgraded

Sri Lanka Insurance, (SLIC) the largest and strongest composite insurer in Sri Lanka has been affirmed by Fitch Ratings at AA-(lka) in the National Insurer Financial Strength(IFS) ratings and at A+(lka) in the National Long-term rating.

The outlooks for both ratings have been changed to positive from stable. Chief Executive Officer Sri Lanka Insurance Nalaka Godahewa said, "The rating and positive outlook we have received is a direct result of the efforts SLIC has taken over the past few years to transform the company into an efficient and well-managed corporate entity. The strength we inherited when the company was privatised has now been converted into stability which has gained us a clear competitive advantage.

We have seen tangible benefits of the post-privatisation restructuring exercise, with intense focus, international standards and robust processes being a hallmark of who we are today."

The positive outlook was the result of Fitch Rating's tracking of Sri Lanka Insurance progress in reforming the company since privatisation in 2003.In its commentary on the rating action, Fitch said "The changes made to company's systems, products, controls and management during this time have allowed SLIC to better exploit its good market position in Sri Lanka.

The agency considers that premia and claims processes and management have improved over this period, as have accounting systems and controls, management structures and corporate efficiency."