FINANCIAL STABILITY

Life Fund

The symbol of Financial Stability

The Life Fund of the Company, which exceeded Rs.31,868 million as at 31st December 2010, is the fastest growing Life Fund in the industry

Life Fund of Ceylinco Life Rs. 31,868 million

The investments pertaining to the Life-Fund are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No 43 of 2000. The investments of the Life fund are subject to regular monitoring by the Insurance Board of Sri Lanka.

Investment portfolio of the Life Fund

By making substantial investments in the Government and the Commercial Banking sector, we have made a significant contribution to the development of the economy of our country.

Solvency Margin of the Life Insurance Business

The Solvency Margin refers to the excess amount as assets maintained by the insurer over its statutory liabilities. The Solvency margin of an insurer is a key indicator of an insurance company’s ability to meet the obligations arising from the insurance contract at any time. The prevailing insurance regulations require all insurance companies maintain a solvency margin not less than 5% of its statutory liabilities at all times. Ceylinco Life’s solvency margin as at end of 2010 was more than 9 times the minimum solvency margin required to be maintained under the regulations. This is a clear indication of the Company’s financial strength and its ability to honour all claims in the future.

Reinsurers

ReinsurersCeylinco life is backed by world’s largest re insurers namely Swiss Re of Switzerland and Munic Re of Germany.