* Consolidated revenue overtakes 2009 full year figure; Up 61% to Rs. 10.9 billion for 9 months of 2010
* Total Gross Written Premium up 54% to LKR 7,215 million
The superlative efforts of AVIVA NDB Wealth Planners combined with the strong performance of the Company’s bancassurance partners and a robust equity market has resulted in an outstanding consolidated revenue growth of 61% amounting to Rs. 10.9 billion, over the corresponding 9 months in the previous year.
The total annual revenue of the previous year has been surpassed at the end of the 3rd quarter in 2010 due to the strong topline performance of both the Life and General insurance businesses. Group revenue in the 3rd quarter 2010 was reported at Rs. 4.9 billion which represents an increase of Rs. 2.5 billion over the corresponding quarter in 2009.
The total Gross Written Premium income for the period was also impressive, amounting to Rs. 7,215 million, a growth of 54% over the corresponding 9 months in 2009. Life insurance business alone accounted for Rs. 5,082 million recording a growth of 63% while General insurance generated a GWP of Rs. 2,133 million, a strong growth of 36%.
Shah Rouf, Managing Director of AVIVA NDB Insurance attributed the exceptional growth to the Company’s investment-linked expertise. “The backdrop of a strong equity market has contributed to an upsurge in our business that in nine months surpassed the revenue for the whole of last year, which incidentally was the highest sales recorded in the Company’s history. More importantly, our team of Wealth Planners have been revitalised by their new role and ability to serve both the Life and General insurance needs of our customers. They are more efficient and effective in an IT-savvy environment that is also more customer-centric than ever before” he commented.
The Group reported a loss of Rs 13 million, after taxation for the 9 months ending 30 September 2010 while reporting a profit of Rs. 114 million after tax for the third quarter ending 30 September 2010. The corresponding quarter in 2009 reported a profit after tax of Rs. 74.8 million for the Group. The marginal loss was after charging the large investment the Company has made in the brand in the wake of transforming from Eagle to AVIVA NDB. Higher weather-related claims also contributed to this loss. There was also a prudent increase of provision for incurred but not reported (IBNR) claims.
The financial results for the period do not include a bottom-line contribution from the Life insurance business as this is determined at the end of the financial period, after the actuarial valuation of the life fund is determined.
The newly-appointed Chairman of AVIVA NDB, T.R. Ramachandran was confident of the Company’s ability to achieve its ambitious goals for the year, based on the positive results of the third quarter and growth in scale. “Prudent strategies are in place for the growth of our business, with an emphasis on quality, particularly in the area of general insurance underwriting and claims management as we prepare for 2011,” said Ramachandran who is also the MD & CEO of Aviva Life Insurance in India.