The Sri Lanka Insurance Corporation Ltd (SLIC) is planning to divest some of its Lanka IOC (LIOC) shares soon, informed sources said.
“SLIC is getting out of some of its listed securities and they are planning to shed a quantity of LIOC shares,” an informed source told the Business Times. Last year’s SLIC annual report said it had close to eight million LIOC shares.
On Monday SLIC sold some 0.2 per cent in Dialog. SLIC had 74 million in Dialog as at its last annual report. According to sources, SLIC is raising cash to complete the Hyatt Regency Colombo hotel project through its subsidiary Sinolanka Hotels. “SLIC is well on course in its repositioning exercise to align itself fully with all regulatory requirements that will come into force shortly; in particular, the segregation of Life and General Insurance businesses by 2015, and obtaining a listing on the Colombo Stock Exchange by 2016,” Mohan De Alwis, Managing Director/CEO SLIC has said in the last annual report.
He has said that SLIC reported a 10.7 per cent growth in insurance premium during the year under review compared to 19.2 per cent in 2011. “This is mainly due to the intense competition and entrance of new rivals to the market. Further the General Insurance business grew by 11.5 per cent compared to 28.8 per cent growth in 2011 and 9.8 per cent growth was experienced by the company for Life Insurance compared to 12.2 per cent in 2011. Life Insurance contributed 36.5 per cent towards total GWP (Gross Written Premium) and 3.5 per cent contributed by Non-Life Insurance.”
The annual report said that the total GWP in the country increased by 18.4 per cent in 2011 compared to the previous year. It said that in the coming years, the industry is further expected to touch the pinnacle of success with ever-growing life insurance penetration, emergence of online insurance services, and rising foreign investment in the industry. “Taking into account all these favourable factors, the GWP of insurance companies in Sri Lanka is expected to grow at a Compound Annual Growth Rate (CAGR) of around 21 per cent during 2012-2015,” it said.