HNB Assurance achieves 42% GWP growth and 28% rise in profit in 2025

HNB Assurance PLC has reported an outstanding financial performance for the year ended 31 December 2025, delivering a 42% year-on-year growth in Life Insurance Gross Written Premium (GWP), this along with the growth rate in Renewals are the highest in the industry.  

Life GWP reached Rs. 19.49 billion compared to Rs. 13.71 billion in 2024, reflecting strong New Business generation and Renewal Collection. Net Written Premium grew even faster at 43% to Rs. 18.44 billion, highlighting the quality and sustainability of the company’s topline expansion.

Chairman Stuart Chapman said: “The year under review was marked by gradual macroeconomic stabilisation, improved investor sentiment and a more predictable policy environment. Although the economy continues to recover from prior volatility, we are beginning to see renewed financial confidence among individuals and businesses. Against this backdrop, HNB Assurance has delivered strong growth in both revenue and profits, while maintaining robust capital adequacy and prudent risk management. Our improvement in top line, profitability and balance sheet strength demonstrates the resilience of our business model and our ability to navigate changing economic conditions which are reflected in an ROE which increased to 18.5% from 16.9% a year earlier.”

Profit Before Tax increased by 28% to Rs. 3.03 billion from Rs. 2.36 billion in the previous year, while Profit After Tax (including Life Surplus Transfer) rose by 28% to Rs. 2.12 billion compared to Rs. 1.66 billion in 2024. Earnings Per Share improved by 28% to Rs. 14.15 from Rs. 11.04, reinforcing the company’s ability to consistently translate business growth into enhanced shareholder value. In line with this strong performance, the Board of Directors has proposed a first and final dividend of Rs. 5 per share for 2025, representing a 28% increase over the Rs. 3.90 per share declared in the previous year.

Executive Director/CEO Lasitha Wimalaratne highlighted the consistency of the company’s upward trajectory. “Our 2025 performance reflects a sustained pattern of high growth and disciplined execution over the past four years. During this period, we have consistently strengthened our distribution reach, enhanced advisor productivity, invested in digital enablement and sharpened our customer centric value proposition. Each year we have built on the previous year’s gains, and the 42% growth in Life GWP in 2025 is the strongest affirmation yet of that strategy. Importantly, we have achieved this while maintaining underwriting discipline, expanding our Life Fund and delivering a 28% increase in PAT.”

The strength of the company’s balance sheet continued to improve during the year. Total Assets grew by 28% to Rs. 68.44 billion from Rs. 53.40 billion, while financial investments increased by 29% to Rs. 62.49 billion from Rs. 48.49 billion in 2024, reflecting disciplined asset accumulation and prudent investment management. Total Equity rose to Rs. 12.19 billion from Rs. 10.81 billion, supported by Retained Earnings which grew by 18% to Rs. 10.23 billion.

The Life Insurance Fund recorded a significant expansion of 27%, increasing to Rs. 48.87 billion from Rs. 38.34 billion in the previous year. During the year, the company paid Rs. 4.40 billion in Net Insurance Benefits and Claims, honouring its commitments to policyholders and their families while further strengthening long term reserves. Investment Income remained a key contributor to performance, with interest and dividend income rising by 10% to Rs. 7.49 billion.

The Market Capitalisation as at the end of the year stood at Rs. 17.21 billion up 43% from a year ago when it was Rs. 12.02 billion, while trading for year ended at Rs. 114.75 per share increasing by 43% from Rs. 81.10 a year ago.