Dec 30,2014 (LBO) – Sri Lanka’s Asian Alliance Insurance PLC said it terminated the rating agency agreement with Fitch Ratings Lanka Ltd on 28th October 2014 as Fitch insisted on reviewing Asian Alliance’s rating due to a rating revision of ultimate parent – Softlogic Holdings PLC (SHL).
SHL was subsequently rated A- by Lanka Rating Agency Ltd, formerly RAM Ratings (Lanka) Ltd, the insurer said in a media release.
Fitch Ratings Lanka has withdrawn Asian Alliance Insurance PLC's National Insurer Financial Strength Rating and National Long-Term Rating of 'BBB(lka)', due to insufficient information to maintain them the rating agency said in a media release earlier this month.
The Sri Lanka-based company's Insurer Financial Strength Rating of 'B' has also been withdrawn. All the ratings were on Rating Watch Negative. Fitch said that they will no longer provide rating or analytical coverage for this issuer.
Responding to that Asian Alliance Insurance said,
“A rating is not a mandatory requirement for insurance companies in Sri Lanka and Asian Alliance had obtained both local and international ratings in order to demonstrate best practice,”
“Asian Alliance is in contact with leading international rating agencies to obtain an international rating which process is scheduled to be completed in 4 months.”
The company recorded PAT of 532 million rupees as at end September 2014 with 21 percent of Life premiums growth at 2.2 billion rupees, the company said.
Profits after tax were 511 million rupees for Life business and 21 million for the General insurance business has been reported for the first nine months of the year, the company said.
SHL was subsequently rated A- by Lanka Rating Agency Ltd, formerly RAM Ratings (Lanka) Ltd, the insurer said in a media release.
Fitch Ratings Lanka has withdrawn Asian Alliance Insurance PLC's National Insurer Financial Strength Rating and National Long-Term Rating of 'BBB(lka)', due to insufficient information to maintain them the rating agency said in a media release earlier this month.
The Sri Lanka-based company's Insurer Financial Strength Rating of 'B' has also been withdrawn. All the ratings were on Rating Watch Negative. Fitch said that they will no longer provide rating or analytical coverage for this issuer.
Responding to that Asian Alliance Insurance said,
“A rating is not a mandatory requirement for insurance companies in Sri Lanka and Asian Alliance had obtained both local and international ratings in order to demonstrate best practice,”
“Asian Alliance is in contact with leading international rating agencies to obtain an international rating which process is scheduled to be completed in 4 months.”
The company recorded PAT of 532 million rupees as at end September 2014 with 21 percent of Life premiums growth at 2.2 billion rupees, the company said.
Profits after tax were 511 million rupees for Life business and 21 million for the General insurance business has been reported for the first nine months of the year, the company said.
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