Director General of the island’s insurance regulator Damayanthi Fernando told LBO that seven out of twelve composite insurers have so far completed their segregation requirements.
AIA General Insurance Lanka, Amana Takaful Life, Asian Alliance General Insurance, Cooplife Insurance, HNB General Insurance, Janashakthi General Insurance and Union Assurance General have been awarded new licenses with effect from January 01, 2015.
“Others are also under evaluation and would be segregated on time unless court approvals delayed the process”, Fernando said.
The regulation of insurance industry (amendment) act requires composite insurance companies segregate the long-term (life) and non-life insurance businesses into two separate entities by February this year.
The insurance regulator is yet to issue new licenses for Sri Lanka Insurance Cooperation, Ceylinco insurance, LOLC insurance, and MBSL.
“Sanasa Insurance Company will also get the license once they obtain the district court approval”, she said.
The segregated entities will also be listed on the Colombo Stock Exchange by next year enhancing transparency and encouraging better governance.
Insurance giant Ceylinco insurance is holding an extraordinary general meeting on January 14 to seek the shareholder approval for two resolutions ahead of its segregation which came under criticism.
Head of market development at the CSE, Niroshan Wijesundera told LBO that the notice of the EGM has duly updated in the daily market reports.
“Since it’s only a circular we have updated it on the summary of the daily market report”, Wijesundera said.
A group of shareholders said to be the employees of Ceylinco insurance recently raised concerns over lack of transparency in getting the shareholder approval for the two resolutions.