HNB Assurance Group records 27% GWP growth in 1H21

Thursday, 19 August 2021 00:00 - - {{hitsCtrl.values.hits}}

HNBA and HNBGI CEO Prasantha Fernando

HNBA Chief Operating Officer Lasitha Wimalaratne

HNBGI Chief Operating Officer Sithumina Jayasundara

HNB Assurance PLC (HNBA) and its fully-owned subsidiary HNB General Insurance Ltd. (HNBGI)

recorded a Profit After Tax (PAT) of Rs. 285 m for the first half of 2021 (excluding surplus transfers from the Life Fund which will be determined at the end of the year following the valuation of the Life Fund), with a Gross Written Premium (GWP) of Rs. 5.7 b. During the period, both HNBA and HNBGI recorded notable GWP growth rates of 44% and 11% respectively.

Expressing her views on the performance delivered, HNBA and HNBGI Rose Cooray stated: “I’m pleased to state that the Group has completed another successful 1st half, recording a notable PAT of Rs. 285 million amidst all prevailing challenges and uncertainties. As the pandemic keeps posing new threats, the Group adapted various agile business strategies to combat the adverse aftermath impact of the pandemic as well as to keep growing and going forward. Looking at the performance of each business, the Life Insurance business recorded a GWP of Rs. 3.1 billion and the General Insurance business recorded a GWP of Rs. 2.6 billion and the Net Income of the Group surpassed Rs. 6.4 billion.

Cooray added: “It is noteworthy to mention that given the financial stability and positive outlook of the Group, the Fitch Rating for ‘National Insurer Financial Strength Rating’ of both entities were upgraded to A+. The Boards of HNBA and HNBGI remain confident of the future outlook of both entities and the businesses are well focused on investing in growth opportunities, advancing its product portfolio to suit the needs of its customers and deliver sustainable value to its customers as well as shareholders.”

HNBA and HNBGI Chief Executive Officer Prasantha Fernando stated: “The positive growth momentum of the Group continued during the second quarter, delivering a significant double-digit GWP growth of 27% compared to the corresponding period of last year. Although the PAT growth, in comparison to the corresponding period of 2020, has taken a dip, this was mainly due to increase in claims experienced in the General Insurance business consequent to greater mobility of vehicles compared to last year, and a reversal of deferred tax asset owing to the change in the tax rate. However, change in tax rate is a one-off negative impact and will benefit the Group in the long-run.”

Fernando continued: “It is noteworthy to mention that the Total Assets of the Group surpassed Rs. 33.7 billion and the Investment Income of the Group surpassed Rs. 1.3 billion. The Life and General Funds of the Group reached Rs. 18.8 billion and Rs. 3.3 billion respectively. The upgraded Fitch Rating of A+ is a reflection of the Group’s resilience, stability and solid business practices and with effective strategies in place, the Management of HNBA and HNBGI remains confident of what’s ahead and is on course to achieve the set targets for the year.”