FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» ACL post share split trading and the future potential
by EquityChamp Yesterday at 11:13 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 10:11 pm

» DIPD/HAYC/HAYL
by Chathur Yesterday at 9:44 pm

» Sometimes you might find that you have lost all your money in the market by investing in the non profitable stocks in the market.
by Asoka Samarakone Yesterday at 8:34 pm

» Blossom March
by Vishwanarth Yesterday at 7:00 pm

» RICH or TKYO
by RJ1010 Yesterday at 5:43 pm

» TILE / LWL / RCL
by arun.cse Yesterday at 1:39 pm

» TOKYO CEMENT COMPANY (LANKA) PLC
by arun.cse Yesterday at 1:14 pm

» RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)
by Rational Investor Yesterday at 11:58 am

» Opportunities after CSE drop
by EquityChamp Yesterday at 11:36 am

» Amana Bank's total assets cross Rs100 bilion with Rs 1billion operating profit
by samaritan Yesterday at 11:25 am

» Pakistan keen to invest in port city: Cabraal
by samaritan Yesterday at 11:16 am

» BROWNS INVESTMENTS PLC (BIL.N0000)
by samaritan Yesterday at 11:02 am

» GLAS will be winner with Super Gain.
by Promoney Yesterday at 10:26 am

» SANASA DEVELOPMENT BANK PLC (SDB.N0000)
by IDK Yesterday at 9:23 am

» Madura takes the Portfolio Manager 2021 leadership with staggering 3.5bn
by roshan1039 Yesterday at 5:46 am

» NATIONS TRUST BANK PLC (NTB.N0000)
by ColomboCSE Sun Feb 28, 2021 10:52 pm

» Sri Lanka's Debt Dynamics
by sanjeewa88 Sun Feb 28, 2021 7:50 pm

» TRUE VALUE OF LANKA ALUMINUM INDUSTRY (LALU)
by Wolf86 Sun Feb 28, 2021 7:32 pm

» Value first and BUY second !
by EquityChamp Sun Feb 28, 2021 7:26 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Fitch Publishes Sri Lanka's Asian Alliance Insurance IFS 'B'; Outlook Stable

Fitch Publishes Sri Lanka's Asian Alliance Insurance IFS 'B'; Outlook Stable

Go down  Message [Page 1 of 1]

Sidath

Sidath
Manager - Equity Analytics
Manager - Equity Analytics
Fitch Ratings-Colombo-22 August 2013: Fitch Ratings Lanka has published Sri Lanka-based Asian Alliance Insurance's (AAIP) Insurer Financial Strength (IFS) Rating of 'B'. The agency has also published the National Insurer Financial Strength Rating and the National Long-Term Rating of 'BBB+(lka)', respectively. All the ratings are on Stable Outlook.
Key Rating Drivers
AAIP's ratings reflect Fitch's expectation of operational assistance and synergistic benefits from its ultimate parent, Softlogic Holdings Plc (SHP; A-(lka)/Stable) based on its 41.54% effective ownership. The ratings also reflect AAIP's modest but growing market share and its somewhat weak capitalisation due to aggressive top line growth.
The company has a competitive advantage in tapping SHP's customer base in healthcare and vehicle leasing and in accessing its retail outlets and branches across the country. AAIP has 36 branches and supplements non-life distribution by leveraging off 19 SHP outlets. The company expects to enhance its reach in Sri Lanka with a further 30 to 50 outlets by 2015.
AAIP's regulatory solvency for the life segment at end-H113 improved to 2.44x from 1.88x in 2012, following an allocation of LKR500m of AAIP's total capital to the life business. This has supported premium growth and will also facilitate the anticipated split of life and non-life businesses as required by regulation. For non-life the solvency ratio deteriorated to 1.4x at end-H113 from 2.37x in 2012, mainly due to aggressive top line growth. Both ratios currently meet the regulatory requirement and the company has expressed its commitment to improve the non-life solvency ratio to above 3x by end-2013.
In 2012, gross written premium (GWP) in life grew 28.8%, supported by new business, and non-life GWP grew 89.8% on account of rapid growth in motor and health insurance. These compare with an industry GWP growth of 6.6% and 14.7% for life and non-life, respectively. Fitch expects the aggressive top line growth to continue to put pressure on AAIP's solvency ratios.
AAIP's investment portfolio remains heavily exposed to equity at 26.6% of total invested assets, albeit reduced from 37.6% in 2011.
Improvements in the loss ratio (2012: 75.4%, 2011: 78.1%) and expense ratio (2012: 44.3%, 2011:50.8%) resulted in a drop of the combined ratio to 128.3% (2011: 136.6%). Nevertheless, this is still high compared with an industry average of 105%. Management intends to concentrate on group-related businesses to reduce the loss ratio. Fitch expects improvements in the combined ratio to be slow given its rapid business growth and intense price competition in the non-life business.
Established in 1999, AAIP is a composite insurer accounting for less than 3% of industry assets at end-2012. In 2011, the company became a part of SHP, a diversified conglomerate. In early 2013 strategic investors, Deutsche Investitions- und Entwicklungsgesellschaft and Financierings-Maatschappij voor Ontwikkelingslanden N.V. bought 38% of AAIP from Soft Logic Capital.
Rating Sensitivities
The ratings may be upgraded on more stable contribution from AAIP's life and non-life operations, resulting in more sustained pre-tax income while strengthening its market share.
The National Ratings could be downgraded if AAIP's regulatory solvency ratios weaken and remain below its management-committed internal thresholds of 2x for life and 3x for non-life.
A weakening of AAIP's strategic importance to SHP, a significant reduction in parent ownership or a weakening of SHP's credit profile could also result in a downgrade of AAIP's ratings.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum