HNB Assurance PLC (HNBA) released its integrated annual report for the financial year 2016 which highlighted the growth in life insurance as well as the general insurance business.
The annual report of the company showcased its journey of 15 years and the impact which the business has created on all stakeholders throughout its journey.
Sharing her views on the performance of HNBA and HNB General Insurance Limited (HNBGI) over 2016, of HNBA and HNBGI Chairperson Rose Cooray stated, “It surely was a year of stiff competition across the entire industry. Owing to the regulatory requirements and fulfilling the legal and social obligations, several strategic changes were made in order to secure market share and to achieve a favourable business growth. In comparison with the previous financial results of 2015, I am indeed pleased to state that performance of both HNBA and HNBGI resulted in a 22 percent top line growth and a growth of 228 percent in the bottom line.”
“The life and general insurance industries in Sri Lanka are highly competitive and dynamic. The regulatory measures have brought in a framework for the governance structure and the effective use of capital. The life insurance industry as a whole recorded a growth of 19 percent and general insurance segment posted a growth of 14 percent as opposed to the growth of the life insurance industry of 20 percent in 2015 and the growth of the general insurance segment of 15 percent in 2015. HNBA and HNBGI surpassed the industry growth rates recording growth rates of 27 percent in its life business and 16 percent in its general business,” she added.
Speaking further on the growth perspectives of the group, Cooray added, “The group was able to record a profit after tax (PAT) of Rs.647 million, showcasing a growth of 228 percent over 2015. This was the highest PAT the group recorded since its inception. It is important to note that the group recorded this significant achievement as a result of the turnaround of HNBGI from loss to profit.”
Sharing his views on the performance of 2016, HNBA and HNBGI Chief Executive Office Deepthi Lokuarachhci stated, “2016 was a challenging year for the entire Insurance industry and the key challenges faced included the high settlement of claims which arose from two devastating catastrophes. Yet, the business was successful in deploying its strategies and capabilities across the group, which led both businesses to yield a profitable growth. The transition from the solvency regime to the risk-based capital (RBC) brought in significant changes in valuing insurance contract liabilities and regulatory reporting.”
Speaking on the performance of each category, Lokuarachchi stated, “The life business showed a remarkable growth surpassing the industry growth and was able to retain an industry rank of six. HNBA was able to record its highest net profit of Rs.600 million as opposed to Rs.427 million in 2015. The life business showed a GWP of Rs.3,554 million and a net income of Rs.4,427 million, whereas the general business showed a GWP of Rs.3,142 million and a net income of Rs.2,516 million.
The Life Fund reached an 8.6 billion rupee mark over 2016. HNBA was able to declare a maximum bonus of Rs.54 per Rs.1,000 to its policyholders and a dividend rate of 8 percent for policyholders of the fund-based product category.
The general insurance business was able to maintain a healthy balanced mix between the motor and non-motor segments. The brand was able to retain its position within the top ten general insurers of Sri Lanka. With this growth momentum, the board as well as the management of HNBA and HNBGI has derived sustainable business strategies which would allow the business to compete in a challenging business environment and to post a steady growth during the course of 2017.”
HNBA is one of the fastest growing insurance companies in Sri Lanka with a network of 56 branches. HNBA is a life insurance company with a rating of A (lka) by Fitch Ratings Lanka for ‘national insurer financial strength rating’ and ‘national long-term rating’. Following the introduction of the segregation rules by the insurance regulator, HNBGI was created and commenced its operations in January 2015; HNBGI continues to specialize in motor, non-motor and Takaful insurance solutions and is a fully-owned subsidiary of HNB Assurance PLC.
HNBA is rated within the Top 100 Brands and Top 100 companies in Sri Lanka by LMD and HNB Assurance has won International awards for Brand Excellence, Digital Marketing and HR Excellence and also won many awards for its annual reports at the award ceremonies organised by the Institute of Chartered Accountants of Sri Lanka and South Asian Federation of Accountants (SAFA).