21 August 2017 10:03 am
Ceylinco Insurance PLC reported consolidated earnings of Rs.893. 8 million or Rs.33.84 a share for the April-June quarter (2Q17), recording an increase of 75 percent year-on-year (YoY) supported by stronger investment incomes and moderate increase in premiums amidst challenging operating conditions.
Ceylinco grew its life and non-life gross written premiums (GWP) by 5.0 percent YoY to Rs.8.3 billion of which life business accounted for a little under 50 percent.
Ceylinco is country’s largest life insurer by GWPs and its life fund grew by as much as Rs.4.4 billion during the first half (1H17) to Rs.81.5 billion. The company said in May its life business was the fastest in the local market to cross Rs 80 billion.“General business sentiment remains somewhat subdued and the insurance market is fiercely competitive. Nevertheless our continuing emphasis on business fundamentals and judicious investment strategies enables us to maintain the momentum”, said R. Renganathan, the group’s life business Chief Executive Officer in a statement.
During the quarter under review, the investment and other income grew by a strong 31 percent YoY to Rs.3.0 billion offering a notable boost to the group bottom line.
The group paid net claims of Rs.3.6 billion compared to Rs.3.2 billion, up 11 percent YoY.
Meanwhile, the group increased its first half earnings to Rs.2.2 billion or Rs.81.58 a share from Rs.1.37 billion or Rs.51.88 a share, a 57 percent jump in the bottom line YoY.
The total GWPs were Rs.16.7 billion, up 8.0 percent YoY. The life GWPs were Rs.7.4 billion, up from Rs.7.2 billion YoY while the non-life GWPs were Rs.8.7 billion from Rs.7.8 billion YoY. During the 1H17, the investment and other income grew by 27 percent YoY to Rs.5.9 billion while the net claims and benefits rose by a modest 7.0 percent YoY to Rs.6.9 billion.
It appears that effective management of claims and benefits has also supported the profits.
Global Rubber Industries (Private) Limited held 22.25 percent shares in Ceylinco group while Banque Pictet & Cie SA held 12.73 percent stake being the two single largest shareholders.