Fitch places seven SL insurers on rating watch negative

• 22 Apr 2022
• 0

Fitch Ratings has placed the National Insurer Financial Strength (IFS) Ratings of seven Sri Lankan insurers on Rating Watch Negative (RWN).

 The insurers are:

-National Insurance Trust Fund Board

-HNB Assurance PLC

-HNB General Insurance Limited

-People's Insurance PLC

-Continental Insurance Lanka Limited

-Co-operative Insurance Company Limited

-Sanasa General Insurance Company Limited



Fitch Ratings has also downgraded Sri Lanka Insurance Corporation Limited's (SLIC) Insurer Financial Strength (IFS) Rating to 'CC', from 'CCC+', and has placed the rating on Rating Watch Negative (RWN).

SLIC's National IFS Rating of 'AA (lka)' has also been placed on RWN. The downgrade reflects the probability that ceased or interrupted payments could occur on SLIC's foreign-currency obligations due to weak foreign-currency liquidity in the local banking system.

 Fitch believes counterparty risk of SLIC's foreign-currency assets have risen following recent negative rating action on the Sri Lanka sovereign and various financial institutions. The insurer has foreign-currency exposure via investments in Sri Lanka development bonds and deposits with local banks

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