SUSPENSION OF REGISTRATION OF ABC INSURANCE COMPANY LIMITED
UNDER SECTION 18 OF THE REGULATION OF INSURANCE INDUSTRY ACT NO. 43 OF 2000

The Insurance Board of Sri Lanka has suspended the registration of ABC Insurance Company Limited in respect of General Insurance Business with effect from 7th April 2008 for contravening section 26 of the Regulation of Insurance Industry Act, No. 43 of 2000. ABC Insurance Company Limited has not maintained the minimum solvency margin as required by Solvency Margin (General Insurance) Rules published in Gazette Extraordinary No. 1341/08 of May 17, 2004 as at 29.02.2008.

Accordingly ABC Insurance Company Limited is prohibited from issuing new insurance policies in respect of General Insurance Business until the suspension is removed.

In terms of Section 18 (2) of the Regulation of Insurance Industry Act, No. 43 of 2000, ABC Insurance Company Limited is required to ensure to fulfil its obligations under insurance policies already issued.

Until the Insurance Board of Sri Lanka informs otherwise, the suspension imposed hereby on ABC Insurance Company Limited remains unchanged till 4.30 p.m. of April 28, 2008.