AIA Sri Lanka achieves strong results in 1Q

• Life GWP at Rs. 1,643 m with 19% growth from conventional products
• Consolidated revenue up 11% to Rs. 3300 m
• General insurance maintains quality underwriting and increases profitability

AIA Insurance Lanka PLC announced strong consolidated revenue of Rs. 3.3 billion for the quarter ended 31 March 2013. AIA Sri Lanka recorded an 11% increase in consolidated revenue over the same period in the previous year.

The strong results reflect the significant performance achieved soon after the historic acquisition of the company by AIA Group Ltd., completed in December 2012, and its subsequent transition from AVIVA NDB to AIA Sri Lanka. Gross Written Premium (GWP) income of the composite business grew by 8% to Rs. 2,472 million compared with the first quarter of 2012.

GWP of conventional life products grew by 19% to Rs. 1,118 million, accounting for 68% of the GWP of Rs. 1,643 million of the overall life business. The GWP of general insurance increased 23% to Rs. 829 million compared to the same period in 2012.  

Consolidated profit after tax declined to Rs. 32 million in the first quarter due to expenses relating to the changeover to the AIA brand. The consolidated profit reported excluded the annual surplus from life business which will be determined after the year-end actuarial valuation and be included in the financial results for the full year ending December 2013.

AIA Sri Lanka Chairman Huynh Thanh Phong commented that the first quarter performance indicates that the company remains well positioned in the growing Sri Lankan market.

“The successful integration of the Company with the AIA Group in the first quarter has provided a very strong foundation for our sustained growth and progress in Sri Lanka. We remain focused on providing our customers here with the best available protection and savings products,” he said.

AIA Sri Lanka Managing Director Shah Rouf said: “This has been an eventful quarter for the Company which has now experienced a tremendous transformation across all functions. It has further strengthened our already well-regarded business by giving us unrivalled access to best practices in 15 other AIA markets in Asia. All for the ultimate benefit of our Sri Lankan policyholders.”

AIA made Sri Lanka its 16 Asian market further expanding its pan-Asian leadership position by acquiring AVIVA NDB Insurance, now re-branded as AIA Insurance Lanka PLC. AIA Group Ltd. and its subsidiaries comprise the largest independent publicly listed pan-Asian life insurance group. It has wholly-owned main operating subsidiaries or branches in 14 markets in Asia Pacific – Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 93% shareholding in Sri Lanka and a joint venture in India.

The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$ 119,494 million as of 31 May 2012.

AIA meets the savings and protection needs of individuals by offering a range of products and services including retirement savings plans, life insurance and accident and health insurance. The group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents and employees across Asia Pacific, AIA serves the holders of more than 24 million individual policies and over 10 million participating members of group insurance schemes.

AIA Group Ltd. is listed on the Main Board of the Stock Exchange of Hong Kong Ltd.