NITF Swings to Loss: Reinsurance Sector Weakens in 1H 2025 📉

The Central Bank's Financial Stability Review for 2025 indicates a sharp reversal in Sri Lanka's reinsurance sector performance during the first half of the year. • The National Insurance Trust Fund (NITF), the sole entity in the reinsurance segment, was the primary driver of this decline. • Profit Before Tax (PBT) Reversal: • NITF moved from a PBT of Rs. 1 Billion in 1H 2024 to a loss of Rs. 361.92 Million in 1H 2025. • Underwriting Shift: • The core underwriting operations mirrored the slump, deteriorating from a profit of Rs. 746.4 Million (1H 2024) to an underwriting loss of Rs. 538.3 Million by end-June 2025. • This stress in the reinsurance segment, which plays a critical role in absorbing large-scale industry risks, will be a key factor in assessing the overall stability of Sri Lanka’s insurance industry going forward.