HNB Assurance Group surpasses Rs. 1 b in profits

HNB Assurance Plc (HNBA) and its fully-owned subsidiary HNB General Insurance Ltd. (HNBGI) recorded robust financial results for the year ended 2019, posting a Profit After Tax (PAT) of Rs. 1 billion, recording a Gross Written Premium (GWP) of Rs. 9.9 billion. 

Sharing her views on the financial performance of the group, HNBA and HNBGI Chairperson Rose Cooray stated: “It indeed is a significant milestone to have surpassed the Rs. 1 billion mark in profits. This augurs well for the core business strategies deployed by the group. It is heartening to note that the group has taken various initiatives to further consolidate its footprint in the market against several challenges. The Profit Before Tax of the Life Insurance business showcased a growth of 21%, excluding the one-off surplus recorded during the corresponding period of 2018 and the General Insurance business depicted a growth of 25% compared to 2018. The group was able to yield such momentous growth mainly due to the commitment of the management and the dedication of staff and the sales force. The board remains confident in the future outlook and necessary steps have been taken to continue and further strengthen our position in the market.”

HNBA and HNBGI Managing Director and CEO Deepthi Lokuarachchi asserted: “The HNBA Group concluded another successful fiscal year depicting a top-line growth of 14% despite several adverse macroeconomic factors such as the downfall in disposable income and changes in fiscal policy. Owing to the fundamental commitment to deliver superior returns to our shareholders, a dividend payout of 48% was made to our shareholders. Earnings Per Share of HNBA as at 31 December 2019 stood at Rs. 16.53. It is noteworthy to mention that the market price per share appreciated by 5% during the year, reaching a value of Rs. 138 as at 31 December 2019.” 

Commenting on the group’s growth, Lokuarachchi added: “The accelerating growth was fueled by our effective business strategies, revolutionary product portfolio as well as by providing a superlative experience to our customers. The Life Insurance business has recorded one of the highest GWPs and New Business growth rates of 17% and 28% surpassed the industry’s growth rates of 11% and 5% respectively. During 2019, the Life Fund surpassed Rs. 14 billion and the General Fund surpassed Rs. 2.5 billion, reaffirming our strong financial position. Strategies are in place to continuously recognise operational benefits and profitable business lines as well as to seize favorable market opportunities.” Announcing the 2019 performance, Lokuarachchi thanked the company’s customers, employees, agency force and market intermediaries for continuing to maintain their trust and commitment levels, without which these results would have been impossible given the challenging market conditions.

HNB Assurance Plc (HNBA) is the 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, 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. HNBA is rated within the Top 100 brands and Top 100 companies in Sri Lanka by LMD and has won international awards for brand excellence, digital marketing and HR excellence in addition to claiming many awards for its annual reports at award ceremonies organised by the Institute of Chartered Accountants of Sri Lanka and South Asian Federation of Accountants (SAFA).