Fitch Ratings has affirmed Sri Lanka Insurance Corporation Life Limited’s (SLIC Life) international Insurer Financial Strength (IFS) Rating at ‘CCC+’ before withdrawing the rating for commercial reasons.
Fitch said the affirmation reflected SLIC Life’s favourable company profile and adequate capital position, offset by high investment and asset risks arising from its exposure to sovereign-related investments.
The rating agency said SLIC Life remained the third-largest life insurer in Sri Lanka in 2025, with around 14% of the gross written premium market share. The insurer recorded a 24% growth in gross written premiums during the year, slightly above the industry average of 23%.
However, Fitch noted that Sri Lanka’s weak sovereign credit profile increased investment and liquidity risks for domestic insurers. SLIC Life’s risky-asset ratio was 512% at end-2025, with investments largely concentrated in fixed-income securities, including government securities and corporate debt.
SLIC Life’s regulatory capital adequacy ratio stood at 523% at end-2025, well above the regulatory minimum of 120%, although it declined from 581% a year earlier.
Fitch said the withdrawal of the international IFS rating was for commercial reasons. The company’s ‘A+(lka)’/Stable National IFS Rating was not part of the review and remains unaffected. (Newswire)