AIA Sri Lanka posts 14% rise in Gross Written Premium in 1Q

AIA Insurance Lanka PLC yesterday announced financial results of the company and its subsidiaries (the ‘Group’) for the three months ended 31 March.

The results showed that the company continued solid, sustainable business growth with consolidated revenue increasing 2% to Rs. 3,268 million, with growth of 14% in Gross Written Premium (GWP) amounting to Rs. 2,949 million offset by lower investment income. 

GWP from conventional life business, which is a key strategic focus, grew by 14% to Rs. 1,528 million and contributed 84% of the overall life GWP of which life GWP stood at Rs. 1,817 million, up 4% while general insurance GWP increased by 35% to Rs. 1,132 million, driven by strong growth in agency.  

AIA Sri Lanka reported a consolidated loss after tax of Rs. 2 million for the three months ended 31 March 2015, compared with consolidated profit after tax of Rs. 78 million in the corresponding period in 2014. 

The loss was mainly attributable to lower investment income and increase in claims in the general insurance business during the reporting period. The surplus of the life insurance business is reported annually at the year end.

AIA Sri Lanka CEO Shah Rouf said:  “Expanding our distribution is bringing sustainable growth and we are well positioned to capture the growth opportunities that exist as the economic development in Sri Lanka continues.”

“This quarter also saw us entering into a historic partnership with Sri Lanka Cricket as the official insurance partner for Sri Lanka Cricket which reiterates our commitment to connecting with and protecting what truly matters to Sri Lankans,” he added.

AIA Sri Lanka Chairman Gordon Watson said: “AIA will continue to invest in the Sri Lankan insurance market to build the foundations for long-term and sustainable growth through the consistent execution of our strategy and expansion of our distribution network. I believe that AIA is well placed to benefit from the dynamic growth opportunities in the country and continue our journey to becoming the pre-eminent insurer in Sri Lanka.”