HNBA Group delivers solid and enduring growth in 2020

HNBA and HNBGI CEO Prasantha Fernando

HNBA COO Lasitha Wimalaratne

HNBGI COO Sithumina Jayasundara

HNB Assurance PLC (HNBA) and its fully owned subsidiary HNB General Insurance Ltd. (HNBGI) haverecorded a Profit After Tax (PAT) of Rs. 1.175 b for FY 2020, growing 16% compared to the corresponding period last year, whilst the Group’s Gross Written Premium (GWP) reached Rs. 10.4 b for the year under review.

HNBA and HNBGI Chairperson Rose Cooray stated, “Year 2020 undoubtedly was a challenging year to all of us. However, amidst the unprecedented adverse challenges presented by the outbreak of this global pandemic, as a Group, HNBA was able to surpass the Rs. 1 b mark in PAT for the second consecutive year, auguring well for the agility and resilience of the businesses to quickly recalibrate itself in the midst the unprecedented calamity to continue to create and deliver value to all its stakeholders.”

Cooray added: “The Group remains well focused on what’s ahead and to further consolidate its firm footing in the market by curating its business strategies through efforts of cost optimisation, strengthening the Group’s investment portfolio and seizing market segments with high growth potential. I wish to thank the Board of Directors as well as the CEO and the executive committees as well as the staff and management of both companies for a job well done.”

Chief Executive Officer Prasantha Fernando said: “Our teams proved their mettle last year, by maintaining their resolute focus on the end goal, driven by an agile mindset, the thirst for prompt and meticulous execution and being focused on digitalisation; whilst as an organisation, our philosophy has always been putting people first, be it staff, agents, contract staff and customers. In this regard, these results that we are indeed proud to present have being achieved without any curtailment of their remuneration or benefits. The management team was able to successfully manage the change process with regards to adapting and evolving to the new normal as well as embracing technology that helped us operate in environs within which movement was constrained.

“The Group was able to surpass the significant Rs. 10 b milestone in GWP with a growth of 5% compared to the corresponding period last year. Interest Income of the Group saw a growth of 11% to Rs. 2.5 b even in spite of the decreasing interest rate regime that we witnessed, driven by portfolio growth and sound investment strategies. Total Assets of the Group increased by 19% to Rs. 31.7 b whilst the Total Liabilities of the Group grew by 18% to Rs. 23.5 b. Whilst we are pleased to continue to be rated A (lka) by Fitch Ratings Lanka for ‘National Insurer Financial Strength Rating,’ our Capital Adequacy Ratio (CAR) increased from 322% in 2019 to 338% in 2020 for the Life Business. HNBGI’s CAR too increased to 256% from 226% in 2019, both very well above the minimum regulatory requirements.”

Fernando added: “New product development too was undertaken to enhance our service to specific segments of the market which saw HNBA launch two products aimed at strengthening our foothold in the health insurance space with the launch of SupremeHealth Max and SuperCI, while HNBGI came up with a novel concept in motor insurance called Pay As You Claim. I am confident that the team will take on 2021 with a fresh sense of purpose and vigour.”