Continental Insurance Lanka Limited, a fully owned subsidiary of Melstacorp PLC / Distilleries Company of Sri Lanka PLC, owned by leading business magnate Harry Jayawardena, achieved ‘National Insurer Financial Strength (IFS)’ upgraded to A+(lka) by Fitch Ratings. The recent rating action by Fitch is a tribute to the solid financial strength, resilience and financial discipline, of Continental Insurance, for the rating to be upgraded amidst current economic downturn and Sri Lanka’s sovereign rating being downgraded.
In spite of the hurdles that the financial sector of Sri Lanka faced during the past two years, Continental Insurance had maintained its underwriting discipline and its capital ratios comfortably above the regulatory requirements.
Commenting on the rating upgrade, Managing Director of Continental Insurance, Chaminda de Silva said “we are happy that the continued efforts by Continental Insurance to maintain its financial strength and underwriting quality of the portfolio during the past years have been recognized. Despite the many challenges especially during the past two years, Continental Insurance has continued with its strict underwriting philosophy, balancing growth and return as well as risk and governance, which we will continue in the future.”
Fitch attributes the rating upgrade to Continental Insurance due to its sustained improvement in capital position, supported by its disciplined underwriting and cost rationalization initiatives and its business profile supported by a sound non-life market share.
The rating commentary of Fitch issued on the rating action states ” the upgrade reflects a sustained improvement in CILL’s regulatory capital position along with its consistently good underwriting performance.”