Fitch Ratings has assigned Sri Lanka-based Sanasa General Insurance Company Limited (SGIC) a National Insurer Financial Strength (IFS) rating of ‘BBB-(lka)’. The Outlook is Stable.
The rating takes into consideration the non-life insurer’s satisfactory financial performance and capital position, as well as a ‘Less Favourable’ business profile relative to Fitch-rated Sri Lankan insurers.
SGIC’s business profile reflects a small operating scale, a motor-dominated business mix and an average risk appetite. Gross premiums accounted for 0.9% of the non-life industry premiums in 2020, ranking 13th among 14 active non-life insurers in the market. “Even so, Fitch believes that SGIC’s competitive position benefits from association with the Sanasa movement, which is well known especially in rural and semi-urban regions.”
The insurer aims to expand premium contributions from non-motor insurance lines, such as micro, agriculture, fire and property insurance, in a bid to reduce concentration in motor insurance and diversify business mix over the medium to long term. SGIC has some exposure to unique crop, livestock and weather-based agriculture insurance products, although premium contributions are small.
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