HNB Assurance Records a Robust 1st Quarter Performance

  May 18,2017

HNB  Assurance  PLC  (HNBA)  and  its  fully  owned  subsidiary  HNB  General  Insurance Limited  (HNBGI)  posted  a  Profit  AfterTax  (PAT)  of  LKR  74  MN  for  the  first  quarter  of 2017,   reflecting   a   121%   growth   compared   to   LKR   33   MN   recorded   during   the corresponding period last year.

The  Group  achieved  a  growth  of  18%  during  Q1  of  2017,  posting  a  Gross  Written Premium (GWP) of LKR 1.9 BN against the GWP of LKR 1.6 BN recorded during the same of  2016. The  Life  Insurance  Company  posted  a  GWP  of  LKR  988  MN  and  the  General Insurance Company posted a GWP of LKR 929 MN during the period under review. The Group was able to deliver a steady performance as a result ofthe strategic initiatives implemented  in  new  business  acquisition  as  well  as streamlining  its  core  business operations. The key contributors to the reported growth were identified as the growth in both Individualand Corporate Policies of the Life Insurance Company as well as the contribution   of   the   Motor   segment   of   the   General   Insurance   Company.   On   a comparable  basis  with  the  results  of  the  corresponding  period  of  2016,  the  post-tax profit  of  the  Life  Insurance  business  showcased a  growth  of  66%.The  businesses were  successful  in  capturing  new  market  segments  and  seizing  profitable  growth opportunities, despite the challenging market and economic conditions. The recorded growth  was  in  line  with  the  Group’s  expectations  on  the  phaseof  maximizing  its profits as well as in delivering value to its stakeholders.

Sharing thoughts on the financial performance of the Group, Chairperson of HNBA and HNBGIMrs.Rose Cooray stated, “We are indeed pleased on the results the Group was able  to  yield  at  the  end  of  the  first  quarter  of  this  year,  amidst  the  stiff  competition and  other  macroeconomic  factors.  The  Group  surpassed  the  LKR  15  BN  milestone  of Total Assets during the first quarter of 2017 and Investments in Financial Instruments reached a value of LKR 12 BN. During the same period the Life Insurance Fund grew by 7%  while  the  General  Insurance  Fund  grew  by  5%  reaching  values  of  LKR  9  BN  and LKR  2  BN  respectively.  These  results  reflect  the  favorable  direction  the  company  is
headed  and  the  Board,  the  management  and  staff  of  both  HNBA  and  HNBGI  are committed   to   improve   the   financial   performance   of   the   Group   as   well   as   to strengthen the competitive positioning of both HNBA and HNBGI”.

Commenting  on  the  financial  performance  of  the  Group,  Chief  Executive  Officer, Mr. Deepthi  Lokuarachchi  stated,  “I  am  pleased  by  the  performance  delivered  by  both HNBA  and  HNBGI  during  Q1  of  2017.  The  financials  of  Q1  reflects  a  solid  growth compared  to  the  results  of  the  first  quarter  of  2016.  During  the  first  quarter  of  2017 the Group recorded an impressive investment income growth of 84% reaching a value of  LKR  360  MN  against  the  value  of  LKR  195  MN  in  the  first  quarter  of  2016.  Several key  drivers  including  the  synergies  of  the  Group,  deriving  key  strategies  to  further consolidate  the  position  of  the  two  entities  helped  the  Group  to  achieve  these financial results during Q1 2017”.