HNBA posts steady growth in 1H 2018

HNB Assurance Group delivered impressive financial results for the first half of 2018, posting a Profit After Tax of Rs. 805 m. 

The first half PAT is inclusive of the regular profits together with the one-off surplus which arose from the insurance industry valuation rule change as well as the first quarter valuation of the Life Fund under the new valuation method. The profit growth thus reflected the 357% growth over prior. However, the resultant increase remains uniquely applicable only for the year 2018, the company communication stated. 

The Group recorded a Gross Written Premium (GWP) of Rs. 4.2 b, depicting a growth of 12% amidst very tight market conditions when compared with the GWP of Rs. 3.8 b recorded during the corresponding period of 2017.

Sharing her views on the financial results, HNBA and HNBGI Chairperson Rose Cooray stated: “The Group has made progress during the first half, further strengthening our footprint in the insurance industry. These impressive results were achieved amidst many economic and operational challenges. The first half operating results showcase solidity of the HNBA Group and the improved efficiencies of the Life and General businesses and the strategies in place to cater to the insurance needs of our community. Both businesses of the Group are committed to deliver value to all stakeholders as well as to further consolidate firm standing of the Group in the insurance industry.”

Expressing his views on the first half financial results, HNBA and HNBGI Managing Director/CEO Deepthi Lokuarachchi stated: “These results are an outcome of the Group’s well-founded strategies and well-focused management practices. In a challenging economic backdrop, the Group was successful in achieving a GWP growth of 12% during 1H 2018.”

Speaking on the performance of each business, Lokuarachchi commented: “Classes such as motor and fire of the General insurance business showcased an impressive growth while other classes including the Life insurance business have grown consistently with the market ratios of growth. Total assets of the Group reached Rs. 20 b and the investment in financial instruments surpassed the value of Rs. 16.5 b. As at 30 June 2018, the Life Insurance Fund reached a value of Rs. 11.6 b and the General Insurance Fund reached a value of Rs. 2.6 b.”

Commenting on the Group’s future prospects, he said that the Group remained confident of its ability to deal with ongoing and imminent challenges facing the business and to grow beyond benchmarks.