HNB Assurance records excellent growth; declares attractive dividend
Friday, 13 February 2015 00:00
HNB Assurance PLC has successfully completed its last year as a composite insurance company by recording a 20% growth in its turnover during the year ended 31 December 2014. Its General Insurance sector achieved a 25% growth in Gross Written Premium while the Life Insurance sector delivered a 16% growth. The Company was able to outperform the industry by a considerable margin in oth markets improving its market share to 4% in General Insurance and 5% in Life Insurance.
While achieving a significant expansion in business volumes, the Company was able to achieve a 7% growth in Profit After Tax. This is the 10th successive year in which the company has been able to deliver a growth, both in turnover and profits. In order to share the benefits of this exceptional performance with its shareholders, the Company has declared an attractive dividend of Rs. 3.75 per share which represents a 15% growth over the previous year.
Not forgetting the life policyholders of the Company, very attractive bonus and dividend rates have been declared to them in respect of the year ended 31 December 2014. Life policyholders with participating policies will be eligible for bonus declarations of up to Rs. 65 per 1,000 sum assured depending on the year of purchase while non-participating policyholders will receive a dividend of 8% on their policies.
The Company has also retained its Fitch rating of ‘A (lka)’ for Insurer Financial Strength and National Long Term Rating with a stable outlook. In compliance with the regulatory requirement to split the life and general insurance business into separate legal entities, the Company established a fully owned subsidiary under the name of HNB General Insurance Limited and transferred its General Insurance business to this Company with effect from 1 January.
HNB General Insurance Ltd which has now commenced business operations with a share capital of Rs. 1 billion has already received an ‘A (lka)’ rating from Fitch for Insurer Financial Strength and National Long Term Rating with a stable outlook, on par with its parent company. HNB Assurance and HNB General Insurance Ltd have thus become the first pair of companies to obtain a rating after being segregated.
Commenting on above, HNB Assurance and HNB General Insurance Managing Director Manjula de Silva expressed his satisfaction on being able to complete the last year as a composite company on a high note setting a strong platform to launch a new era of rapid growth as two separate entities.