ICRA Lanka Withdraws the ratings of Sanasa Life Insurance Company Limited

Instrument*Rated Amount (LKR Mn)Outstanding Amount (LKR Mn)Rating Action
Insurance Financial Strength RatingN/AN/A[SL]BBB; Stable Outlook; Withdrawn
Proposed Senior Unsecured Redeemable Debenture programme200200[SL]BBB; Stable Outlook; Withdrawn

Rating action

ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the insurance financial strength rating of [SL] BBB (pronounced SL triple B) with Stable outlook assigned to Sanasa Life Insurance Company Limited (“SLICL “/”the Company”). ICRA Lanka has also withdrawn the issue rating of [SL] BBB (pronounced SL triple B) with Stable outlook assigned to the LKR 200 Mn senior, unsecured, redeemable debenture programme of the Company. The withdrawal is as a result of termination of rating agreement(s) entered into by SLICL with ICRA Lanka, pursuant to the decision by ICRA Lanka to cease its business operations in Sri Lanka.

The termination of the rating agreement(s) is as per Rule 88(b) of the Credit Rating Agency Rules promulgated under the Securities and Exchange Commission of Sri Lanka Act No. 19 of 2021 (the “SEC Act”).

About the Company:

The Company is primarily a provider of micro insurance. The process of the formation of SLICL took place  in 1989, when an NGO called ‘Forum of Development’ (FOD) conducted a survey to identify the more popular voluntary organizations in the Kegalle District in Sri Lanka. It was a project designed to promote development skills of voluntary organizations. It was revealed in the survey that Funeral Aid Societies (FAS) were the most popular and active organizations at the village level, with a high degree of  participation due to their needs based approach of providing assistance. It was further revealed the FAS were strong with well- built funds.

In light of this information, representatives of FAS were motivated by FOD to design and implement an insurance scheme of their own. The insurance scheme  designed by them was named “Ahethuka Wipath Awarnaya” (risk coverage against unfortunate perils). The Scheme was inaugurated  in October 1991 with  a participatory membership of 182 members of Sanasa Societies and Funeral Aid Societies (FAS). With the passage of time the number of participants in this scheme increased so rapidly, that Sanasa decided to set up Sanasa Insurance Limited and obtained a license to operate Life Insurance business in 2003 and to operate General Insurance in 2005. In July 2019, the Company was segregated into two entities (Life and General) following the due process stipulated by the Insurance Regulatory Commission of Sri Lanka (IRCSL). The  General Insurance business was transferred to its newly formed subsidiary, Sanasa General Insurance Limited (SGI).  Accordingly, SLICL  is currently solely a Life Insurance company as well as the holding company of SGI.

Rating history for last three years:

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