Home » News » HNB Assurance maintains growth momentum
HNB Assurance PLC (HNBA) maintained its growth momentum in the 1st quarter of 2015, despite challenging market conditions. The company, which recorded above market growth in 2014, achieved a 20% in group turnover recording Rs. 1.37 Bn as consolidated premiums, up from Rs. 1.15 Bn achieved during the corresponding period of last year.
Premium income of Rs.626 Mn. was achieved by HNB Assurance PLC, the parent company conducting the life Insurance business. Life insurance premiums recorded a 10% growth while General Insurance which is carried out by the fully owned subsidiary, HNB General Insurance Ltd, recorded an impressive 29% growth by generating a premium income of Rs. 743 Mn.
The growth seen in the Life segment of the business was mainly through Endowment policies as planned by the company, which was supported by MRP and other Single Premium investment type products. General Insurance growth was mainly influenced by a strong growth in motor insurance, generated through a variety of network partners and direct agents.
The consolidated Profit after Tax for the 1st quarter of 2015 was Rs. 15.5 Mn. which is lower than Rs. 53.9 Mn. recorded during the corresponding period of last year. This was mainly due to an increase in claims in the General Insurance business and the current investment climate also affected both lines of business. However, the company is confident profits would improve, since value from the substantial growth achieved in life and general insurance businesses would accrue in future. The current profit is only attributable to General Insurance and investment income from Shareholder’s funds, with the profits emanating from the surplus of the Life Insurance business being calculated and declared at the end of the year.
Commenting on the progress of the company, Acting CEO Niranjan Manickam noted, “The strong growth seen in both lines of business is very promising as our focused efforts to develop identified areas are beginning to meet expectations. We believe that both companies are now well positioned to maximize the potential market opportunities and expand their presence, while creating sustainable value to all stakeholders.”