Fitch upgrades HNB Assurance, HNB General Insurance to IFS ‘A+(lka)’; Outlook Stable | Daily News

Fitch upgrades HNB Assurance, HNB General Insurance to IFS ‘A+(lka)’; Outlook Stable

Fitch Ratings has upgraded the National Insurer Financial Strength (IFS) Ratings of Sri Lanka-based life insurer, HNB Assurance PLC (HNBA), and its fully owned non-life subsidiary, HNB General Insurance Limited (HNBGI), to ‘A+(lka)’, from ‘A(lka)’.

The Outlooks are Stable.

The upgrade reflects the insurers’ improved capital position, as measured by strong regulatory risk-based capital (RBC) ratios. The ratings also take into account the insurers’ ‘Favourable’ business profiles and a sustained improvement in their non-life underwriting performance, while maintaining satisfactory earnings in its life insurance operation.

HNBA has comfortably maintained its life RBC ratio at above 300% since the implementation of the RBC rules by the regulator in 2016 (1Q21: 326%, 2020: 338%), which is well above the 120% regulatory minimum. Meanwhile, HNBGI has improved its non-life RBC ratio to above 200% in a sustained manner, to reach 253% in 1Q21 (2020: 255%, 2019: 226%), supported by a better non-life underwriting performance.