Tuesday, April 24, 2012
Ceylinco Insurance posts Rs. 1.1bn net profit
* Assets grow by 24.3% to reach Rs.61.3 billion
*Premium Income growth of 10.3%
Ceylinco Insurance recorded a profit after tax of Rs.1,129 million (Rs 1.1 billion) for the year ended 31st December 2011. During the year under review, Ceylinco Insurance PLC made an operational profit of Rs.1,301 million ( Rs 1.3 billion ). The after tax profit of the group stood at Rs.1,393 million, signifying a growth of 39% year on year, the insurers announced recenctly.
In 2011, Ceylinco Insurance PLC recorded a mammoth premium income of Rs.19.8 billion, which amounted to a growth of 10.3%, with the General Division contributing Rs.10 billion, and the Life Division accounting for the remaining Rs.9.8 billion.
Announcing the profit, Managing Director/Chief Executive Officer of Ceylinco Insurance – General, Ajith Gunawardena, said: "What we have achieved in 2011 was in line with our expectations. We have succeeded by adhering to sound fundamentals and we are committed to managing our business with great discipline and prudence. Our main focus, as always, remains the central figure that drives our business: the customer, and accordingly, during the year under review, Rs.4.9 billion was paid out by Ceylinco Insurance – General, as claims."
Commenting on the Life Division’s performance during 2011, Managing Director/Chief Executive Officer of Ceylinco Life, R. Renganathan said: "Our ability to outperform the industry growth is evidence of the trust and confidence that Ceylinco Life has built up over the years. This is an invaluable asset that we intend to nurture and build on in the years ahead. It is noteworthy that Ceylinco Life planned and executed several spectacular promotions in the year reviewed, and paid Rs 1.8 billion in bonuses and cash bonuses, far exceeding policyholder expectations."
Meanwhile, the total investments of the company, including both the Life and General Divisions, exceeded Rs.46,988 million( Rs 47 billion) , whilst assets grew by 24.3% and stood at Rs.61.3 billion by the end of December 2011.
During the year under scrutiny, the General Division sold over 650,308 new policies, bringing the total policies in force to 1,284,621.
Furthermore, net transfers to the Life Fund over the year was Rs. 6.3 billion, increasing the Life Fund to Rs.38.2 billion, recording a remarkable growth of 19.8% year on year.
The Life Division meanwhile, sold over 143,259 new policies during the year, while Life solvency stood at over eight times the required solvency ratio. The total claim benefits disbursed by the Life Division in 2011 amounted to Rs.2,946 million.
Ceylinco Insurance, the undisputed market leader in Sri Lanka for eight consecutive years, enjoys a market share of 24.8 % in the sphere of insurance, and remains poised for exponential growth in 2012.
source - www.ft.lk