AIA Insurance Sri Lanka was recently recognized as the Best Life Insurance Company in Sri Lanka for 2019, by the UK based Global Banking and Finance Review. This is a reflection of our strong performance and financial stability, which is important now more than ever considering the economic situation.
In this article we explore the 4 indicators of financial stability that not only led to us achieving this global recognition, but also shows why your hard-earned savings are safe with us.
What Is Financial Stability and Why Is It Important?
Being Financially stable allows a company to weather detrimental conditions, such as decreases in sales, loss of investment and face economic downturns. It means that the company will be able to continue to thrive, despite negative operating conditions.
More importantly, a financially stable company can guarantee its customers security and healthy returns on their investment no matter how adverse the current market situation.
1. A Capital Adequacy Ratio of 639%.
AIA Insurance guarantees financial stability with a Capital Adequacy Ratio (CAR) that is 5 times the minimum requirement mandated by the Insurance Regulatory Commission of Sri Lanka. This is also the highest CAR amongst life insurers in Sri Lanka. As a result, we are able to absorb a high level of risk while maintaining stability, in the face of an economic crisis. This means that our customers can be rest assured that their claims will be honored and that their money is safe with us.
2. A high quality investment portfolio
Our high-quality investment portfolio is geared towards providing our customers with the best possible returns while still ensuring that their investments are safe. We do this by investing in secure government bonds and high credit quality debentures. We take care to choose A-rated (as per Fitch Ratings Sri Lanka) securities. This low-risk approach guarantees stability and low vulnerability even during economic shocks.
3. 30 years of dividend track record
Another indication of AIA Insurance’s stability is our track record of high payouts. For 30 years we have consistently provided our customers with an annual dividend that has been above the promised amount each year. Despite the current economic situation we have been able to declare a dividend of 9.99% for our customers for 2019.
4. Backed by AIA Group, the largest insurer in the world
AIA Sri Lanka is backed by AIA Group, the world’s largest life insurer that has over 100 years of experience in protecting lives and operates in 18 markets. This gives us access and exposure to world-class learning, knowledge and best practices from these different markets and a wealth of experience that comes from an organization that been in existence for over century. This backing allows us to thrive in any economic environment.
The Bottom Line
While our unique offerings, superior service and business performance have led to us winning multiple awards and recognitions, it is our ability to provide financial security to our customers and their loved ones that makes us most proud. Having the financial strength to operate through risk and crises means we are able to deliver on the expectations of our customers and we assure them of our commitment to helping them live healthier, longer, better lives during the good times and the bad.