HNB Assurance records robust 1Q performance

HNB Assurance PLC (HNBA) and its fully-owned subsidiary HNB General Insurance Ltd. (HNBGI) posted a Profit After Tax (PAT) of Rs. 74 m for the first quarter of 2017, reflecting a 121% growth compared to Rs. 33 m recorded during the corresponding period last year. 

The Group achieved a growth of 18% during Q1 of 2017, posting a Gross Written Premium (GWP) of Rs. 1.9 b against the GWP of Rs. 1.6 b recorded during the same of 2016. The Life Insurance Company posted a GWP of Rs. 988 m and the General Insurance Company posted a GWP of Rs. 929 m during the period under review. 

The Group was able to deliver a steady performance as a result of the strategic initiatives implemented in new business acquisition as well as streamlining its core business operations. The key contributors to the reported growth were identified as the growth in both Individual and Corporate Policies of the Life Insurance Company as well as the contribution of the Motor segment of the General Insurance Company. 

On a comparable basis with the results of the corresponding period of 2016, the post-tax profit of the Life Insurance business showcased a growth of 66%. The businesses were successful in capturing new market segments and seizing profitable growth opportunities, despite the challenging market and economic conditions. The recorded growth was in line with the Group’s expectations on the phase of maximising its profits as well as in delivering value to its stakeholders.

Sharing thoughts on the financial performance of the Group, HNBA and HNBGI Chairperson Rose Cooray stated: “We are indeed pleased on the results the Group was able to yield at the end of the first quarter of this year, amidst the stiff competition and other macroeconomic factors. The Group surpassed the Rs. 15 b milestone of total assets during the first quarter of 2017 and investments in financial instruments reached a value of Rs. 12 b. During the same period the Life Insurance Fund grew by 7% while the General Insurance Fund grew by 5% reaching values of Rs. 9 b and Rs. 2 b respectively. These results reflect the favourable direction in which the company is headed and the Board, the management and staff of both HNBA and HNBGI are committed to improve the financial performance of the Group as well as to strengthen the competitive positioning of both HNBA and HNBGI.”

Commenting on the financial performance of the Group, Chief Executive Officer Deepthi Lokuarachchi stated: “I am pleased by the performance delivered by both HNBA and HNBGI during Q1 of 2017. The financials of Q1 reflects a solid growth compared to the results of the first quarter of 2016. During the first quarter of 2017 the Group recorded an impressive investment income growth of 84% reaching a value of Rs. 360 m against the value of Rs. 195 m in the first quarter of 2016. Several key drivers including the synergies of the Group, deriving key strategies to further consolidate the position of the two entities helped the Group to achieve these financial results during Q1 2017.”

HNB Assurance PLC (HNBA) is one of the fastest growing insurance companies in Sri Lanka with a network of 56 branches.  HNBA is a Life Insurance company with a rating of A (lka) by Fitch Ratings Lanka for “National Insurer Financial Strength Rating” and “National Long-Term Rating”. 

Following the introduction of the segregation rules by the Insurance Regulator, HNB General Insurance Ltd. (HNBGI) was created and commenced its operations in January 2015; HNBGI continues to specialise in motor, non-motor and Takaful insurance solutions and is a fully-owned subsidiary of HNB Assurance PLC.

HNBA is rated within the Top 100 Brands and Top 100 companies in Sri Lanka by LMD and HNB Assurance has won international awards for brand excellence, digital marketing and HR excellence and also won many awards for its Annual Reports at the award ceremonies organised by the Institute of Chartered Accountants of Sri Lanka and SAFA (South Asian Federation of Accountants).