Reinsurance News

Hannover Re & Swiss Re take 90% of Sri Lankan agricultural re/insurance scheme

17th February 2017 - Author: Staff Writer

Hannover Re and Swiss Re have taken a 90% share in Sri Lanka’s state-owned National Insurance Trust Fund (NITF) agricultural insurance scheme; accepting a respective 50% and 40% of the placement, which was made through reinsurance broker J.B. Boda & Co.

Three other global reinsurers, which includes Munich Re, share the remaining 10% balance.

The reinsurance programme has been set up to give support to agricultural insurance schemes funded by NITF including the recently launched National Agricultural Loan Protection Scheme.

The programme will run on a stop-loss basis, providing cover for extreme agriculture losses when a certain threshold has been exceeded, explains the NITF.

NITF Chairman, Manjula de Silva, said; “NITF is delighted to welcome Hannover Re and Swiss Re to its network of reinsurers which already includes the likes of Munich Re and Allianz SE.”


NITF Chief Executive Officer (CEO), Sanath de Silva added: “Having the backing of strong reinsurers will supplement the financial strength and stability of NITF to withstand external shocks we have to deal with due to volatile climatic conditions.”

NITF is rated AA-(lka) by global rating agency Fitch Rating and is the fourth largest contributor to the Government Treasury among State-Owned Enterprises.

According to reports, Sri Lanka currently produces around 2.7 million tonnes of rough rice annually, providing for around 95% of its domestic requirement.

With the global demand for rice increasing, the tradable volume of Sri Lankan produced rice is expected to have doubled in 20 years time, and the Sri Lankan government’s agricultural insurance scheme aims to further protect this growing resource as threats of more extreme weather from climate change loom on the horizon.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Major insurers lower retentions, buy more reinsurance

New reinsurance demand is being seen as some of the world's largest insurance companies lower their retentions on existing layers...