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Friday, September 30, 2011

Insurance growth

The insurance sector has recorded an overall Gross Written Premium (GWP) income of Rs. 38.59 billion during the first half of 2011, which is a growth rate of 23.38% compared with the corresponding period of 2010, the Insurance Board of Sri Lanka (IBSL) states.

Overall GWP income of General Insurance businesses for the first half of 2011 amounted to Rs. 21.56 billion when compared with Rs. 18.18 billion during the same period last year.

In the meantime, overall GWP income of Long Term Insurance Businesses (Life) for the first half of 2011 amounted to Rs. 17.04 billion over the Rs. 13.12 billion in 2010.

Total Assets of the insurance companies have increased to Rs. 241.86 billion at the end of the first six months of 2011 from Rs. 222.24 billion at the end of year 2010.

IBSL further stated that during the first half of 2011, companies engaged in Long Term Insurance invested 51.86% of total assets in government securities as against 50.96% in 2010 whilst companies involved in general insurance invested 25.7% of total assets in government securities as compared with 24.65% in 2010.

The amounts invested by both segments of the industry into government securities is above the amount legally required. Long Term Insurance companies and General Insurance Companies should invest 30% and 20% respectively.

“The investment in Government Securities represents 51.86% (1st Half 2010: 50.96%) of the total assets of Long Term Insurance Business and 25.70% (1st Half 2010: 24.65%) of the total assets of General Insurance Business at the end of 2nd quarter of 2011. This is in excess of the required amount of investment in Government Securities by the Act” IBSL said,

The intermediary Insurance Broking Companies also made a significant contribution, as the total GWP income from both General and Life insurance business amounted to Rs.4.94 billion during the fist half of 2011.There are currently 20 insurers registered with the IBSL. Of these, 12 are composite companies dealing with both General and Long Term Insurance Businesses, while 6 are registered to carry out General Insurance Businesses and 2 are solely engaged in Long Term (Life) Insurance Business.

The figures pertaining to the Overall GWP Income, Total Assets and Investment in Government Securities represent all insurance companies except National Insurance Trust Fund (NITF) and Ceylinco Takaful Limited.

source - www.dailymirror.lk