HNB Assurance Group records significant growth in 1H20

HNB Assurance PLC (HNBA) and its fully-owned subsidiary HNB General Insurance Ltd. (HNBGI) recorded a Profit After Tax (PAT) of Rs. 500 million during 1H 2020, depicting a steady growth amidst the outbreak of a global pandemic.

Speaking on the financial performance of the group, HNBA and HNBGI Chairperson Rose Cooray stated: “It is indeed a great pleasure to announce that HNB Assurance Group has achieved a significant PAT growth compared to the corresponding period of the previous year following an economic downturn caused by the outbreak of a global pandemic. Through the tireless efforts, our teams successfully navigated the challenging environment to deliver a noteworthy performance. The Life Insurance business recorded a PAT of Rs. 176 m, showcasing a growth of 25%. The profit does not include any surplus transfer from the Life Fund. The General Insurance business recorded a PAT of Rs. 323 m depicting an impressive growth of 120%. 

“These results reiterate the resilience of our sustainable core business model and the group’s undivided focus in capturing market segments with growth potential. The unprecedented challenges arising from the COVID-19 outbreak together with other adverse global and market conditions have created a challenging backdrop which businesses around the globe are currently experiencing; but with the strategies of the management together with the dedication of the staff members of HNBA and HNBGI and the advisor force, I’m sure we could overcome this uncertain turbulence.”

Sharing his views on the performance of the group, HNBA and HNBGI Chief Executive Officer Prasantha Fernando stated: “HNBA Group delivered outstanding financial results amidst a number of macro-economic challenges presented during a global crisis. In a market backdrop where most businesses succumbed its profits to the outbreak of COVID-19, HNBA Group has delivered a notable performance. The group recorded a Gross Written Premium (GWP) of Rs. 4.5 b. The investment income of the group surpassed Rs. 1.2 b and the total assets of the group surpassed Rs. 29 b. 

“The Group has taken swift and effective measures and has adapted various agile initiatives following the COVID-19 outbreak, including enhancing its digital selling portals and claims settlement platforms. It is noteworthy to mention that the Life and General Insurance Funds surpassed values of Rs. 15.7 b and Rs. 2.9 b respectively reaffirming the Group’s firm footing.”

Fernando added: “The management is thankful for the commitment and dedication of all employees during these trying times. The management remains confident that together with the diversified business strategies the Group will be able to sustain its continuous growth and deliver value to all stakeholders.”

HNB Assurance PLC (HNBA) is one of the fastest growing insurance companies in Sri Lanka with a network of 63 branches. HNBA is a Life Insurance company with a rating of A (lka) by Fitch Ratings Lanka for ‘National Insurer Financial Strength Rating’. 

Following the introduction of the segregation rules by the Insurance Regulator, HNB General Insurance Ltd. (HNBGI) was created and commenced its operations in January 2015; HNBGI continues to specialise in motor, non-motor and Takaful insurance solutions and is a fully-owned subsidiary of HNB Assurance PLC. 

HNB General Insurance has been assigned a ‘National Insurer Financial Strength Rating’ of ‘A’ (lka) by Fitch Ratings Lanka. HNBA is rated within the Top 100 brands and Top 100 companies in Sri Lanka by LMD and HNB Assurance has won international awards for brand excellence, digital marketing and HR excellence including the Great Place to Work Certification, and won many awards for its annual reports at award ceremonies organised by the Institute of Chartered Accountants of Sri Lanka.