Sri Lanka Insurance emerged as the market leader of the general insurance sector at the end of year 2020 reaffirming the supremacy of the state insurance giant.
Sri Lanka Insurance commands a market share of 20.3%, leading the General Insurance market and recorded a total GWP (Gross Written Premium) of Rs. 20,163 million as at December 31, 2020.
The company recorded 6% growth in the General Insurance sector despite the 1.5% negative growth rate of the overall General Insurance industry. The non-motor insurance segment of SLIC recorded a phenomenal growth of 38% achieving Rs.8,357 million GWP while motor insurance segment achieved Rs. 11,806 million GWP leading the motor insurance segment.
The premier motor insurance brand ‘Sri Lanka Insurance Motor Plus” is among the many pillars behind this triumph. The leading motor insurance brand redefined the motor insurance experience by introducing multiple innovative motor insurance products cater to unique needs of customer segments in the motor insurance market.
Singer Sri Lanka PLC, the country’s premier consumer durables retailer in a pioneering virtual launch recently unveiled an all new entertainment product portfolio from Sony including 4K UHD Android Television series, new range of Sony Audio systems, Active Noise Cancellation powered Headphones and range of Sony Sound Bars. The launch event was the first of its kind organised by Singer featuring a massive audience and it was streamed live via several platforms including Social media channels of Singer, Sony, Chanux Bro and many other community and celebrity pages, providing access for the general public to get to know of the new products while being entertained at the same time.
Aiming to offer a new experience for the viewers, the event was hosted by Sri Lanka’s most popular tech YouTuber, Chanux Bro who has over 1Mn subscriber base in YouTube.
Asset risk at Sri Lankan insurers has increased due to the sovereign’s weaker credit profile and the consequent lowering of national ratings of some state-owned and private-sector institutions, says Fitch Ratings in a report published today. The increased asset risk, however, will not greatly affect the regulatory capital ratios of most Fitch-rated Sri Lankan insurers due to the limited rise in risk charges according to local risk-based capital (RBC) rules.
The local regulatory RBC rules exempt debt securities issued or guaranteed by the government from charges on credit and concentration risk in the calculation of the regulatory capital ratio. In addition, some of the recent negative national rating actions were within the same national rating category and therefore not subject to additional credit risk charges according to these rules.
“We estimate that as at end-June 2020 Fitch-rated insurers had invested around 55% of their fixed-income portfolios in direct government securities, such as treasury bills, bonds, Sri Lanka development bonds, repos and unit-trust assets backed by government securities, and around 16% in deposits and debt securities issued by state-owned enterprises, including banks, non-banking financial institutions and corporations.”
Fitch recalibrated the national rating scale following the sovereign downgrade, resulting in the downward revision or downgrade of the national ratings of some state-owned and private-sector institutions.