Sri Lanka Janashakthi Insurance rating upgraded

Dec 10, 2010 (LBO) - The claims paying ability of Sri Lanka's Janashakthi Insurance has been upgraded to 'A-' from 'BBB+' with a 'stable' outlook, on improving expense and claims ratios RAM Rating Lanka said. "Janashakthi’s rating continues to be supported by the Company’s strong competitive position in the general segment and its moderate underwriting standards," the agency said.

"RAM Ratings Lanka also views the introduction of a formalised investment framework positively."

Janashakthi is Sri Lanka’s third largest general insurer, accounting for 12.76 percent of the general insurance industry’s premium in on 2009. It started in 1992.

General insurance makes up 70 percent of the firms income.

"Janashakthi’s strong competitive position is underpinned by its wide geographical reach, having a branch network only surpassed by the two largest insurance companies," RAM Ratings said.

"In terms of life insurance, the Company is the fifth largest taking up 5.87 percent of the industry’s premiums."

Janashakthi’s combined ratio in the general business had improved with tight overhead controls.

Janashakthi’s expense ratio had fallen from 47.36 percent in 2008 to 43.9