Biz Briefs  

Fitch withdraws Asian Alliance rating

Fitch Ratings Lanka has withdrawn Asian Alliance Insurance PLC's National Insurer Financial Strength Rating and National Long-Term Rating of 'BBB(lka)'.

The company's Insurer Financial Strength Rating of 'B' has also been withdrawn. All the ratings were on Rating Watch Negative. The ratings have been withdrawn due to insufficient information to maintain it.

Ruble's slide adds pressure on Russian economy

A sharp depreciation in the value of the Russian ruble added further pressure on the country's economy already weakened by plunging oil prices and Western sanctions, leading US experts said.

The oil-dependent economy, they estimated, would contract about five percent next year if oil prices stay at around US $ 60 a barrel.

The ruble plunged to an all-time low in mid-December and had lost more than 45 percent of its value against the dollar since January, becoming one of the world's worst-performing currencies this year, as the gloomier Russia economic outlook drove investors to sell rubles.

Russia's Central Bank last week dramatically raised its key interest rate to 17 percent from 10.5 percent, to tamp down inflation and stem the currency's tumble. However, the surprise move, instead of reversing the downturn, only spooked markets further.

- Xinhua

Alliance Finance debentures oversubscribed

Alliance Finance Company's senior, unsecured, listed, redeemable, rated debt offer for Rs. 750 million was oversubscribed and closed on the same day.

The bank offered 7,500,000 debentures at Rs. 100 each with an option to issue a further 2,500,000 of the said debenture to raise Rs. 250 million in the event of oversubscription. The basis of allotment and final status of applications received will be notified to the CSE in due course.

Amãna Takaful to separate insurance businesses

Amãna Takaful PLC will transfer its life insurance business, Family Takaful to Amãna Takaful Life Limited from January 1, 2015, a company official said.

The separation of Amãna Takaful's life and general insurance businesses will enable the company to run the two categories of insurance as separate business entities.

The transfer takes place following a mandatory need by Section 53 of the Regulation of Insurance Industry Amendment, Act No. 3 of 2011 which requires all composite insurance providers to segregate their long-term and general insurance businesses.

From January 1, all Life insurance policies held by policyholders of Amãna Takaful PLC will be transferred to Amãna Takaful Life Limited, which will operate as a wholly-owned subsidiary.