Home / Front Page/ Insurance industry grows by 15% in 1Q

Insurance industry grows by 15% in 1Q


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 23 August 2016 00:24

Facebook

The insurance industry has recorded a growth of 14.59%, in terms of Gross Written Premium (GWP), during the first quarter of year 2016 when compared to the same period in the year 2015. 

The Insurance Board of  Sri Lanka said GWP for Long Term Insurance and General Insurance Businesses for the first quarter ending 31 March 2016 was Rs. 33,293 million compared to the first quarter of 2015 amounting to Rs. 29,054 million. 

The GWP of Long Term Insurance Business amounted to Rs. 14,729 million (Q1, 2015: Rs. 11,976 million) while the GWP of General Insurance Business amounted to Rs. 18,564 million (Q1, 2015: Rs. 17,077 million) during the first quarter of 2016. 

Thus, Long Term Insurance Business and General Insurance Business witnessed a GWP growth of 22.98% and 8.71% respectively when compared to the corresponding period of year 2015.

Assets

Total assets of insurance companies have increased to Rs. 457,695 million as at 31 March 2016, when compared to Rs. 432,593 million recorded as at 31 March 2015, reflecting a growth of 5.80%. 

The assets of Long Term Insurance Business amounted to Rs. 307,578 million (Q1, 2015: Rs. 267,719 million) indicating a growth rate of 14.89% year-on-year. The assets of General Insurance Business amounted to Rs. 150,117 million (Q1, 2015: Rs. 164,874 million) depicting a decline in growth rate of -8.95%, at the end of first three months of 2016.

At the end of first quarter of 2016, investment in government debt securities amounted to Rs. 128,971 million representing 41.93% (Q1, 2015: Rs. 121,936; 45.55%) of the total assets of Long Term Insurance Business, while such investment of the total assets of General Insurance Business amounted to Rs. 29,034 million representing 19.34% (Q1, 2015: Rs. 27,038; 16.40%).  

Accordingly, the total investment of both Long Term Insurance Business and General Insurance Business in government debt securities amounted to Rs. 158,005 million (Q1, 2015: Rs. 148,974 million) as at 31st March 2016. The investment in government debt securities for both Long Term Insurance Business and General Insurance Business has increased by 5.77% and 7.38% respectively.

GWP

The profit (before tax) of insurance companies in both Long Term Insurance Business and General Insurance Business has increased to Rs. 2,713 million (Q1, 2015: Rs. 2,491 million) showing a growth in profits by 8.93%. 

The profit (before tax) of Long Term Insurance Business amounted to Rs. 2,067 million (Q1, 2015: Rs. 1,957 million) while the profit (before tax) of General Insurance Business amounted to Rs. 646 million (Q1, 2015: Rs. 534 million) during the first quarter of 2016. Thus, profit (before tax) of Long Term Insurance Business and General Insurance Business witnessed a growth of 5.66% and 20.90% respectively, when compared to the corresponding period of year 2015.

Out of 28 insurance companies (insurers) in operation as at 31 March 2016, 12 are engaged in Long Term (Life) Insurance Business, 13 companies are carrying out only General Insurance Business and three are composite companies (dealing in both Long Term and General Insurance Businesses). 

Fifty-seven insurance brokering companies registered with the Board as at 31 March 2016, mainly concentrate in General Insurance Business. Total Assets of insurance brokering companies have increased to Rs. 3,670 million as at the end of first quarter of 2016 when compared to Rs. 3,488 million recorded as at 31 March 2015, reflecting a growth of 5.23% year-on-year.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Religion is a problem in Sri Lanka; can it be a solution?

Saturday, 17 August 2019

Generally, it is expected that religion should be a solution to a problem. Ironically in Sri Lanka religion is the problem. Therefore, what would be the solution? When religion becomes a problem of a country....


Orthodoxy and change: A perennial Muslim issue

Saturday, 17 August 2019

Whether Muslims live as minorities in non-Muslim countries or as majorities in a total of fifty seven countries, the clash of orthodoxy with modern challenges is a perennial issue that bedevils progress on several fronts in these communities.


Making the MCC Compact work for Sri Lanka

Friday, 16 August 2019

It is a sign of these political times that even an apolitical issue like a foreign aid program becomes a hot topic in Sri Lanka. In April 2019, the Board of Directors of the Millennium Challenge Corporation (MCC) approved a compact program for Sri La


Sri Lanka needs a president hungry for success, not power

Friday, 16 August 2019

The late John F. Kennedy described politics as a “noble adventure, an adventure in which one joins hands with the masses for the service of man”. Not that the Kennedys didn’t play “politricks” in their heyday. But playing “politricks” w


Columnists More

Special Report

SPECIAL REPORT MORE