The country's premier insurance company, the Sri Lanka Insurance Company (SLIC), is now in the process of dividing the life and general insurance sections in order to adhere to Central Bank regulations to be listed in the Colombo Stock Market (CSE).
“At present, crucial discussions are going on with relevant parties in order to go for an Initial Public Offering (IPO) in the future.
Therefore, it is a mandatory requirement to separate the life and general insurance sections for that purpose, currently run as a single entity,” a top official told the Daily News Business. He said that they were also having crucial discussions with the Insurance Board of Sri Lanka (IBSL) and other relevant parties, including Colombo Stock Exchange, to go for an Initial Public Offering in the future. But the Central Bank’s deadline for the listing of insurance companies was 2016.
SLIC IPO was expected to be this year, possibly after a holding company has been formed to bring in all SLIC investments under one roof, but it did not materialise due to certain technicalities and other reasons.
SLIC form a holding company in which it was to divest around a 40% to 49% stake, adding that the SLIC directors had discussed the matters.
It has been noted that the IPO had been expected to be launched soon, but they were marking time, its sources said.
IBSL regulates and supervises the insurance industry, insurance companies and their agents and insurance brokers, under the Regulations of Insurance Industry Act No. 43 of 2000, to safeguard the interests of policy holders.
The Central Bank is a member of the IBSL and is represented by the Deputy Governor in charge of Financial System Stability. SLIC is a state owned institution, functioning under the Ministry of Finance. Over decades of operation, it has received directions of exemplary leaders which has seen the company progress from strength to strength.
SLIC manages an asset base of Rs 73.6 billion, the largest life fund in the insurance industry of Sri Lanka, which stands at Rs 41.4 billion, over Rs 6 billion in capital and an average daily claim settlement of Rs 31 million.
Sri Lanka Insurance continues to demonstrate its stability and strength.