Home » News » HNB Assurance Reports Significant Acceleration in Growth
HNB Assurance PLC has reported a sharp increase in its turnover during the year ended 31st December 2013 recording a 21% growth compared to the moderate growth of 8% achieved in 2012. This growth was largely fuelled by the Life sector which recorded an impressive 34% growth while the General sector also improved its performance greatly to deliver a growth of 9%. The Company’s growth in the Life sector was well above the market growth while its growth in General Insurance was on par with the Market.
HNB Assurance also reported a healthy 11% growth in its Profit After Tax maintaining its excellent track record of consistently delivering growth in both turnover and profits, a difficult task in the highly competitive insurance market. This enabled the Company to declare an attractive dividend of Rs. 3.25 per share recording a 18% growth in the dividend distribution.
A striking feature in HNB Assurance’s performance is that a similar contribution was made towards profits by both Life and General business. The Company’s General Insurance portfolio generated a Profit After Tax of Rs. 207.6 Mn with a 12% growth over the previous year while it’s Life Insurance portfolio contributed a Profit After Tax of Rs. 181.5 Mn recording a growth of 10%. This is the second successive year in which General Insurance accounted for a larger share of the profit. According to Manjula de Silva , Managing Director of HNB Assurance ‘The Company has dispelled the widely held belief that General Insurance business has to be subsidized by Life Insurance by demonstrating that both lines of business can be operated at a similar level of profitability’.