People’s Insurance posts 77% increase in profit after tax
Wednesday, 7 August 2013 00:00
Records Rs. 209 m in 2013 half-yearly performance
People’s Insurance Ltd. (PIL), a fully-owned subsidiary of People’s Leasing and Finance PLC, revealed its outstanding financial performance for the six-month period ended 30 June 2013 on the back of a record breaking profit after tax performance.
The highlight of the company performance was undoubtedly the unprecedented 77% growth in profit after tax, which increased from Rs. 118 million in the corresponding period in 2012 to reach Rs. 209 million in 2013.
PIL’s excellent 2013 half-yearly performance is reflected in a growth of 13% in Gross Written Premium (GWP), which grew from Rs. 1,430 million to Rs. 1,616 million. This growth was mainly driven by the motor segment, which expanded by 16% despite the challenging environment.
The company managed its investments strategically, with investment income significantly increasing by 88% from Rs. 101 million to Rs. 190 million. This performance was driven by a significant increase in the company’s investment portfolio despite the dropping interest rates experienced in 2013. The company’s investment portfolio increased by Rs. 843 million or 41 %, surging upwards from Rs. 2,068 million to Rs. 2,911 million. This was mainly attributable to the business growth and improved profitability.
The company also posted a growth of 22% in total revenue or a growth of Rs. 282 million, increasing from Rs. 1,271 million to Rs. 1,553 million. The main contributor to this significant increase was the net earned premium of Rs. 190 million which was driven by the increased GWP and investment income of Rs. 89 million.
The company has steadily honed technical resources in the company and as a result, underwriting profit improved by 45% from Rs. 56 million to Rs. 81 million, reflecting a significant improvement in underwriting effectiveness. The net combined ratio improved to 94% compared with 95% recorded during the corresponding period of the previous year, reflecting this position.
Moreover, net assets increased by 35% from Rs. 750 million to Rs. 1,009 million which was mainly contributed by the exceptional profit after tax posted by the company.
The six month period ended 30 June 2013 proved fortuitous for the company, as it opened its second regional office in Negombo. The company also successfully signed a bancassurance agreement with People’s Bank to support the company and help distribute PIL products and services through the bank’s branch network, currently ensuring that customers are offered insurance services from over 700 branches islandwide.
The company stands on the solid foundation and support provided by the Group, particularly, People’s Leasing & Finance PLC and People’s Bank, which stands as an epitome of stability, trust and integrity in the domain of finance in Sri Lanka.
PIL is truly poised to meet the rapidly evolving demands of its customers by launching a new user friendly and state of the art website during the same period, which makes online transactions an easy task for PIL customers. The company also went on to win the Industry Gold Award, Regional Top 50 Honours and Top National Honours at the LACP Vision Annual Report Competition 2012, which reflects the aspirations of the company.