AIA Sri Lanka’s 1H Gross Written Premium up 26% to Rs. 4.8 b

Friday, 12 August 2016 00:00 - - {{hitsCtrl.values.hits}}

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AIA Insurance Lanka Plc today announced its financial results along with those of its subsidiaries for the six months ended 30 June 2016.

The main highlights are:

Improved persistency brings significant growth

Consolidated revenue increased 19% to Rs. 6,852 million driven by Gross Written Premium (GWP) growth of 26% to Rs. 4,858 million. The growth in GWP was mainly driven by persistency improvements and a change in premium mode mix.

Conventional life GWP increased 32% to Rs. 4,373 million. Investment income went up 25% to Rs. 2,297 million, benefitting from the increase in interest rates.

Consolidated profit after tax amounted to Rs. 120 million, an increase of 38% compared with Rs. 87 million in the corresponding period of 2015. The surplus of the life insurance business is reported annually at the year end and is therefore not included in the half-year profit.

AIA Sri Lanka Chief Executive Officer Shah Rouf said: “AIA Sri Lanka’s consolidated revenue was boosted by a solid 26% increase in our GWP compared with the first half of 2015. We believe this growth momentum will strengthen further in the second half. AIA remains committed to growing our business both quantitatively and qualitatively and our execution of growth strategies this year has reflected this. We are always looking for ways to make doing business with us easy for our customers as well as our Wealth Planners. As part of this, the launch of mCash mobile phone wallet last quarter has already become a key premium collection method.” Chairman of AIA Sri Lanka, William Lisle, said: “I am very pleased that AIA Sri Lanka had a strong first half in 2016. Our initiatives under Premier Agency Strategy and Bancassurance partnerships are showing excellent results and we are confident that AIA Sri Lanka is well-positioned to benefit from the growth momentum of the Sri Lankan life insurance market.”