December 15, 2011 Colombo: Financial results of AVIVA NDB insurance demonstrated a positive growth gathering momentum in the first 9 months of 2011 ending on 30 September. Consolidated revenue amounted to LKR 9,912 million while Gross Written Premium income of the composite business stood at LKR 8,268 million. The latter showed a satisfactory growth of 15% over the corresponding period in the previous year.
The Company recorded a growth of 20% over the previous year in Life Gross Written Premium amounting to LKR 6,121 million. The investment-linked product portfolio contributed 53% to the total Life GWP. The Company’s ground-breaking life product suite launched in early 2011 included savings and investment products as well as AVIVA NDB Pensions. The new range has clearly combined very favourably with the renewed commitment of AVIVA NDB Wealth Planners and bancassurance partners.
The General insurance business post the re-pricing initiatives and improved quality of underwriting reported a Gross Written Premium of LKR 2,147 million being a marginal increase over the corresponding period in 2010. The Motor class recorded a 29% increase compared to the corresponding period. There was an improvement in the loss ratio reported by the GI business which led to an overall improvement in the combined operating ratio.
The Company reported profit after tax of LKR 210 million which is an increase of LKR 222 million over the corresponding period for the 9 months ending 30 September 2010. The financial results for the period do not include a bottom-line contribution from the Life insurance business as this is determined at the end of the financial period, on completion of the actuarial valuation of the life fund.
Shah Rouf, Managing Director of AVIVA NDB Insurance was confident that the Company would continue to deliver satisfactory results during the year. “Our move to design and develop products that meet the emerging needs and wants of today’s dynamic customers has become our hallmark of excellence in innovation and customer-centric strategies that have had very positive results, helping us to deliver a world class service whilst embracing best practices” he said.
Highlighting the Company’s focus on maintaining exemplary risk management, Chairman of AVIVA NDB, T.R. Ramachandran stated: "The Company has embarked on rolling out 58 risk standards in preparation towards adopting Solvency II in keeping with global best practice. We will enhance our corporate culture through risk adjusted decision making that will provide a strong framework as we move towards adopting a risk based approach to Solvency Capital and compliance with the International Financial Reporting Standards."