SL Insurance ready for an IPO
H.D.H Senewiratne
The country's premier insurance company, the Sri Lanka Insurance
Company (SLIC), is now in the process of dividing the life and general
insurance sections in order to adhere to Central Bank regulations to be
listed in the Colombo Stock Market (CSE).
“At present, crucial discussions are going on with relevant parties
in order to go for an Initial Public Offering (IPO) in the future.
Therefore, it is a mandatory requirement to separate the life and
general insurance sections for that purpose, currently run as a single
entity,” a top official told the Daily News Business. He said that they
were also having crucial discussions with the Insurance Board of Sri
Lanka (IBSL) and other relevant parties, including Colombo Stock
Exchange, to go for an Initial Public Offering in the future. But the
Central Bank’s deadline for the listing of insurance companies was 2016.
SLIC IPO was expected to be this year, possibly after a holding
company has been formed to bring in all SLIC investments under one roof,
but it did not materialise due to certain technicalities and other
reasons.
SLIC form a holding company in which it was to divest around a 40% to
49% stake, adding that the SLIC directors had discussed the matters.
It has been noted that the IPO had been expected to be launched soon,
but they were marking time, its sources said.
IBSL regulates and supervises the insurance industry, insurance
companies and their agents and insurance brokers, under the Regulations
of Insurance Industry Act No. 43 of 2000, to safeguard the interests of
policy holders.
The Central Bank is a member of the IBSL and is represented by the
Deputy Governor in charge of Financial System Stability. SLIC is a state
owned institution, functioning under the Ministry of Finance. Over
decades of operation, it has received directions of exemplary leaders
which has seen the company progress from strength to strength.
SLIC manages an asset base of Rs 73.6 billion, the largest life fund
in the insurance industry of Sri Lanka, which stands at Rs 41.4 billion,
over Rs 6 billion in capital and an average daily claim settlement of Rs
31 million.
Sri Lanka Insurance continues to demonstrate its stability and
strength.
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