The Merchant Bank of Sri Lanka has diluted its shareholding in MBSL Insurance Company Ltd. to 78.02%. It previously held a 100% stake in the insurance company, the Merchant Bank announced in a stock exchange filling.
The insurer reported insurance income of Rs. 140.7 million in the nine months to September 2011, up from Rs. 99.5 million in 2010.
The company made losses continuously up to December 2009 and cumulative losses were Rs. 390 million when it recorded a profit in 2010. The company made a profit of Rs. 9.9 million before tax, a significant achievement since its inception in 2005, the company stated in its 2010 annual report.
In 2010 the overall growth rate in turnover recorded was 75% in General insurance and 70% in Life insurance.
MBSL Insurance crossed the Rs. 500 million mark for gross written premiums in the Life and General insurance businesses by generating a turnover of Rs. 565 million in 2010. The insurer increased Life GWP by 64% from Rs. 55 million in 2009 to Rs. 90 million.
MBSL Insurance was ranked 12th among its 19 competitors in 2010. This was an improvement from one before the last at the beginning of 2010. Merchant Bank shares rose 10 cents to Rs. 39.30 when 111,600 shares traded on Friday, the last day of trading before the holidays.