Sri Lanka Stock Picks

Sri Lanka stock picks site has been developed to give first hand information with regard to share trading opportunities available for investors who do not like go through lengthy research reports, calculations,etc but to have a clear idea about stocks that have future up side potential.Our service is just not for day traders but for the investors who wish to see their money growing in the long run.Our main objective is to provide information relating to trading under one roof.

Wednesday, March 2, 2011

AVIVA NDB hits Rs.15bn all- time high revenue

    * PAT of Rs. 602 million after charging the cost of investment in brand change.

    * Consolidated revenue grew 57% to Rs.15.2 billion

    * Combined Life and GI Gross Written Premium surpassed Rs 10 billion

Year 2010 heralded the Company's transformation into the dynamic and robust - AVIVA NDB Insurance. The year also marks the revolutionary transformation of the Company's direct agency sales force into AVIVA NDB Wealth Planners. The benefits of these historical milestones are clearly evident in the solid set of business results posted by the Company.

AVIVA NDB Insurance PLC reported Rs.10.6 billion in consolidated Gross Written Premium and Rs. 15.2 billion in group revenue, reaching a significant milestone by crossing the Rs. 10 billion and Rs. 15 billion industry benchmarks of scale and success.

The Company recorded consolidated revenue of Rs.15.2 billion which reflects a growth of 57% over 2009. Profit after tax stood at an impressive Rs. 602 million, despite a Rs. 324 million one-off brand change spend in 2010. The new Aviva NDB brand has been readily accepted by all stakeholders.

Life business in particular recorded a very strong performance. Life Gross Written Premium stood at Rs. 7.8 billion, a remarkable growth of 68% over 2009. The direct sales force and bancassurance channel contributed in great measure towards this achievement, with the former accounting for 72% of the volume and the latter 26%, whilst corporate group Life and group gratuity business made up the remaining 2%. Bancassurance made a noteworthy contribution of LKR 2.0 Bn in Gross Written Premium during the year which is 4.5 times its achievement for 2009.

General insurance business reported a healthy top line performance in 2010 with Gross Written Premium of Rs. 2.8 Bn, recording a 14% increase over 2009. The growth was achieved despite the quality-focused underwriting policy adopted by the management team, especially in the medical class of business. The impact was partially offset by the growth in the Motor class of business which reported Rs. 1.6 billion in Gross Written Premium, recording a 53% growth over 2009.

Maintaining profitability in General insurance remains a challenge given the soft market rates prevalent across all classes of General insurance business. General insurance reported an underwriting loss primarily due to the adverse loss experience of Medical and Motor classes of business as well as unfavourable weather.

The two floods in May and November that affected the Western province impacted the financial performance of General insurance business. Despite this underwriting loss, General insurance business reported a noteworthy profit of Rs. 274 million for 2010 supported by strong investment income flow.

The Company continues to remain strong and stable in the midst of the current growth phase with Life business solvency ratio at 1.5 times, GI business solvency ratio at 4.09 times and net assets of Rs. 2.9 billion. Net assets have grown by 13% during the year and provide a strong platform to maintain and sustain the current growth momentum.

Commenting on the Company's extraordinary performance, Shah Rouf, Managing Director said, "I acknowledge with gratitude the efforts of our Wealth Planners and bancassurance partners who contributed in great measure towards the success of 2010. I wish to also place on record my sincere appreciation of all AVIVA NDB employees for their diligence and commitment in driving the Company."

T.R. Ramachandran, Chairman, commending the Company's achievements said, "Our results stand testimony to the brave spirit with which AVIVA NDB faced the challenge of change within the Company, whilst leveraging the positive environment that prevailed in the country in 2010".

Shah Rouf concludes, "We will maintain our Life protection and savings focus in 2011 via the launch of AVIVA NDB Pensions, which is a unique world class pension product for our existing and new customers in Sri Lanka. We are a 300 year old insurance Group, so we have plenty of experience and expertise of planning for a happy long life!"

source - www.dailymirror.lk