Allianz Lanka delivered another outstanding year in terms of profitability in 2012. The Life company’s business grew to Rs. 532 million, a remarkable 51% growth over last year. This laudable achievement notched yet another ‘first’ in Allianz Lanka’s belt as the first insurer to attain the half billion mark in just four years of operations.
The company’s new business grew by 39% and contributed Rs. 216 million to Gross Written Premium. The Life Fund grew by 107%, and policyholders were credited with a credit rate (dividend) of 8.5%
Vishrama, a new product introduced this year, is designed for senior citizens and caters to the rapidly aging population of the country. Its popularity affirms the Allianz strength of developing innovative products that meet market needs.
The Non-Life company recorded a Gross Written Premium of Rs. 1,522 million. Contrary to the market performance over 88% of the contribution to the gross written premium came from the non-motor business portfolio. The company reported a profit before tax of Rs. 312 million with Rs. 187 million attributed to underwriting profits, a testimony to Allianz prudent underwriting practices and efficient operating cost management.
“Our focus this year was on further developing our network in the south. The end of civil war and consequent resurgence of business confidence prompted us to concentrate on establishing our presence in the north and east regions of the country during the past two years. This success encouraged us to further establish ourselves in the rapidly developing south as well. I am pleased to say that this expansion strategy has proved successful,” explained Allianz Lanka CEO Surekha Alles.
“Our concern is not merely to be profitable but also to provide results for the customer through a personalised service and value based products. We have committed ourselves to keeping our promises and our customers trust us to keep this pledge. For the future, our plans are to further develop our corporate business and to enter several more retail areas as well.’
The company maintained its focus on technological innovations to provide more conveniences and speedier service to customers. Several IT enabled service innovations are being carried into the next year as well.
Allianz Group reported strong results for the financial year 2012. Revenues reached106.4 billion euros for the year, an increase of 2.7% compared to 103.6 billion euros in the previous year. Operating profit rose 20.8% in 2012 to 9.5 billion euros from7.9 billion euros in 2011.
Allianz achieved its operating profit target that had been raised in October 2012 to over nine billion euros. Until then, Allianz had expected to earn an operating profit of 8.2 billion euros, plus/minus 500 million euros. All business segments delivered double-digit growth in operating profit in 2012.
“Our business had developed so well for the first three quarters that we raised our operating profit outlook. Despite the impact from the storm Sandy, we exceeded our forecast,” said Michael Diekmann, CEO of Allianz SE.
“Our results show how well our business model can handle the various turbulences from the financial crisis. The sustainability and continuity of our businesses are also reflected in our dividend policy. That is why we are again recommending a dividend of 4.50 euros per share, a payout ratio of 40%.”