HNB Assurance PAT grows to Rs. 176 million

HNB Assurance Plc (HNBA) and its fully-owned subsidiary HNB General Insurance Ltd. (HNBGI) posted a Profit After Tax (PAT) of Rs. 176 million for the second quarter of 2017, reflecting phenomenal growth of 332% compared to the PAT of Rs. 41 million recorded during the same period of 2016. 

The impressive performance of the group was reflected in all performance indicators. The parent company, HNBA posted a PAT of Rs. 100 million, marking a growth of 54% while its subsidiary with a PAT of Rs. 76 million recorded more impressive growth of 414% in PAT.

During the second quarter of 2017, the group achieved a 22% growth in its Gross Written Premium (GWP), depicting a value of Rs. 3.8 billion as against the GWP of Rs. 3.1 billion recorded during the comparable period in 2016. The Life Insurance segment contributed GWP of Rs. 1,919 million and the General Insurance segment contributed GWP of Rs. 1,901 million to the overall GWP. The Life and General Insurance segments recorded premium growth rates of 17% and 27% respectively. 

During the second quarter of 2017, the group recorded investment income growth of 54%, reaching a value of Rs. 771 million against Rs. 500 million recorded during the same period of 2016. The Total Assets of the group reached a value of Rs. 16 billion and investments in financial instruments reached a value of Rs. 13 billion. During the same period the Life Insurance Fund and General Insurance Fund grew by 14% and 29%, reaching values of Rs. 10 billion and Rs. 2.5 billion respectively.

Sharing her thoughts on the group’s financial performance, Chairperson of HNBA and HNBGI Rose Cooray stated: “We are indeed delighted to announce the results of another successful quarter. Both the Life and General Insurance segments have showcased steady revenue growth. The concerted and well-targeted efforts the group has taken throughout 2017 to grow profitable business has made both HNBA and HNBGI more resilient and competitive insurance companies in the industry. The group continues to leverage on its core competencies in stabilising its market share by delivering a substantial long-term value to our shareholders whilst meeting all our obligations to our valued customers with highest responsibility. These financial results are a testament to the group’s continuous financial stability and its growth momentum.”

Speaking on the financial performance of the group, HNBA and HNBGI Managing Director/CEO Deepthi Lokuarachchi stated: “Despite many tough challenges in a rapidly changing market, the group has made significant strides by creating a stronger platform for growth by delivering a steady financial performance. This growth momentum of the group showcases the strength of our business strategy and we are confident that both our Life and General Insurance companies will reach out as strong players in this industry.”

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 as well as many awards for its annual reports at the award ceremonies organised by the Institute of Chartered Accountants of Sri Lanka and the South Asian Federation of Accountants.