Fitch Ratings has affirmed Sri Lanka Insurance Corporation Life Limited's international financial strength rating at 'CCC+' while announcing its withdrawal for commercial reasons, though the company's domestic rating remains unchanged.
Fitch Ratings has affirmed Sri Lanka Insurance Corporation Life Limited's (SLIC Life) international Insurer Financial Strength rating at 'CCC+' before subsequently withdrawing the rating. According to Fitch, the affirmation was based on the insurer's strong company profile and sufficient capital reserves, though these strengths were tempered by significant investment and asset-related risks stemming from its substantial exposure to sovereign-related investments.
SLIC Life maintains its position as the third-largest life insurer in Sri Lanka, commanding approximately 14% of the gross written premium market share. The company demonstrated solid growth momentum during 2025, recording a 24% increase in gross written premiums, which slightly exceeded the industry average of 23%.
Despite the positive growth trajectory, Fitch highlighted concerns regarding Sri Lanka's sovereign credit outlook, which it characterised as weak. This weakness amplifies investment and liquidity risks for domestic insurance companies operating in the country. At the close of 2025, SLIC Life's risky-asset ratio stood at 512%, with the majority of its investment portfolio concentrated in fixed-income securities, including government bonds and corporate debt instruments.
Regarding capitalisation, SLIC Life's regulatory capital adequacy ratio reached 523% at end-2025, substantially exceeding the regulatory minimum requirement of 120%. However, the ratio declined from 581% recorded in the previous year. Fitch attributed the withdrawal of the international rating to commercial considerations. The company's domestic 'A+(lka)'/Stable National IFS Rating was not subject to review and remains unaffected by these developments.
