Fitch Ratings revised the Outlook on the National Insurer Financial Strength (IFS) Ratings of Sri Lanka-based life insurer HNB Assurance PLC (HNBA) and its fully owned non-life subsidiary, HNB General Insurance Limited (HNBGI), to Positive from Stable and affirmed the ratings at ‘A(lka)’.
The Outlook revision reflects better non-life capitalisation and financial performance while maintaining satisfactory life capitalisation. The rating affirmation takes into account the insurers’ favourable business profiles and prudent investment policies.
Fitch expects the insurers’ capitalisation, as measured by their risked-based capital (RBC) adequacy ratios, to remain comfortably above the 120% regulatory minimum in the medium term. HNBA’s life RBC ratio was strong at 319% at end-2018 (2017: 358%), while the non-life RBC continued to steadily increase to 200% in 2018, from 178% in 2017, supported by an improved non-life underwriting performance.
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