Sri Lanka Insurance embarks on a new era: Legal segregation marks historic milestone

• SLIC creates history as it segregates operations to Sri Lanka Insurance Corporation Life, and Sri Lanka Insurance Corporation General 

Sri Lanka Insurance Corporation, the pioneering insurance giant with a rich history spanning over 60 years, has officially entered a new chapter with the legal segregation of its Life and General insurance businesses. 

This monumental decision, in compliance with the regulatory framework set by the Insurance Regulatory Commission of Sri Lanka (IRCSL), takes effect from 1 February 2024. 

Founded as the State-owned insurer, Sri Lanka Insurance played a pivotal role in shaping and establishing the insurance industry in the country, paving the way for private sector insurers. Over the past six decades, it has emerged as the strongest and largest insurer, contributing significantly to the nation’s development by safeguarding lives and assets and creating substantial job opportunities, particularly for the youth.

A momentous event to mark this historic occasion was held at the Sri Lanka Insurance head office on 1 February, following traditional Sri Lankan customs. 

At the ceremony, SLIC Chairman President Counsel Ronald C. Perera presented the business registrations to the Group CEO Chandana L. Aluthgama, symbolising the establishment of two distinct entities: Sri Lanka Insurance Corporation Life Ltd., and Sri Lanka Insurance Corporation General Ltd.

Sri Lanka Insurance Corporation Life Ltd. (SLICLL) and Sri Lanka Insurance Corporation General Ltd. (SLICGL) foresee new opportunities for growth and success. The legal segregation allows for a more focused execution of their respective business strategies, ensuring enhanced efficiency and effectiveness in serving their customers. Both companies remain steadfast in their commitment to superior customer service. The essence of their business drive for 2024, ‘Customer centricity through focused specialisation,’ remains unchanged.

 “Even though the legal segregation commenced on 1 February the Life and General business of SLIC has functioned as distinctive entities with its separate profit and loss statements, financial operations, and strategic focuses. The announcement formalises this legal segregation, marking a significant milestone in our pursuit of excellence. It is also imperative to note that financial management of the two businesses has been prudently managed independently, ensuring the security of our funds and investments. This is a testament to our commitment to best practices and sound financial governance,” Aluthgama said

Reflecting on this significant milestone, SLIC Chairman Ronald C. Perera said, “The segregation is not just a corporate restructuring; it marks the beginning of a new journey for Sri Lanka Insurance. While we bid farewell to our composite status, we welcome the opportunity for greater specialisation and excellence in both Life and General insurance. Our commitment to our customers, employees, and the nation remains unwavering.”

SLIC said as it embarks on this transformative journey, it carries with it the legacy of over 60 years as a composite insurer, now evolving into two distinct entities, each poised to contribute to the growth and prosperity of Sri Lanka.