Focus on Government controlled entities - Wed Dec 20, 2023 10:07 am
Ekanayake90 wrote:There could be a consolidation between government owned insurance businesses after the split process #PINS
SLIC to be split into Life and General units
The Sri Lanka Insurance Corporation (SLIC) will be split into two entities namely Life and General before its restructure and the background to this process is nearing completion, Finance Ministry officials said.
The Regulation of Insurance Industry (Amendment) Act, No.03 of 2011 requires an existing insurer to be listed on the Colombo Stock Exchange (CSE). Insurance Companies were asked to segregate their business into two separate companies before obtaining a mandatory public listing to promote greater transparency and encourage better governance but SLIC was exempted in a 2014 letter to the SLIC trade unions by the finance ministry saying that SLIC isn’t required to segregate the Life and General Insurance businesses and also that they need not list on the CSE – both rules that had to be followed by all other private insurance companies.
Now with SOE restructuring efforts, the state insurance arm will be split into life and general units, as per the instructions provided to the State-owned Enterprise Restructuring Unit (SRU) of the Ministry of Finance by the Committee on Public Enterprises. The request for proposals to invest in SLIC will go out in the first quarter of next year
This is Big , will see the next move
Cabinet approval has been granted to divest the life and general insurance business of Sri Lanka Insurance Corporation Limited.
Accordingly, Sri Lanka Insurance Corporation Limited will be segregated into Sri Lanka Insurance Corporation Life Limited and Sri Lanka Insurance Corporation General Limited.
The government said Cabinet approval was given in March 2023 for taking the necessary steps to operate the life and general insurance businesses of the Sri Lanka Insurance Corporation as separate legal entities.
https://www.newswire.lk/2023/12/19/sri-lanka-insurance-corporation-major-cabinet-decision/