Ceylinco Insurance grows GWPs by 7% in 3Q despite challenging conditions

Ceylinco Insurance PLC recorded a positive growth in gross written premiums (GWPs) during the three months to September (3Q17) as the insurance giant expanded business despite the challenging market conditions, particularly with regards to its life segment.

Ceylinco Insurance, the market leader in both life and non-life businesses, grew its consolidated GWPs by a 7.0 percent year-on-year (YoY) to Rs.8.73 billion, the interim financial accounts released to the Colombo Stock Exchange showed. 

On a quarter-on-quarter (QoQ) basis, the GWPs of both life and non-life businesses grew by 5.43 percent, which indicated a positive growth in new business.

Ceylinco Insurance commands the leadership in both the life and non-life businesses, based on GWPs, with 23.64 percent and 19.22 percent market shares, respectively, the data from the Insurance Board of Sri Lanka for the year 
2016 showed. 

Meanwhile, during the quarter under review, the company’s investment income grew by 19 percent YoY to Rs.3.42 billion as the yields of the government securities were higher during 2017 than the 
previous year. 

Ceylinco Insurance had a financial investment portfolio of Rs.105 billion by end-September 2017, of which, Rs. 62.6 billion was in ‘held-to-maturity’ financial assets. 

The company’s life fund stood at Rs.84.8 billion by September, up from Rs.77.4 billion at the beginning of the year. 

The non-life fund grew by Rs.19 million to Rs.11.85 billion over the 
nine months. 

Meanwhile, for the three months, both life and non-life companies paid claims and benefits of Rs.3.67 billion, up 7.0 percent YoY. 

The profit after tax for the group rose by 21 percent YoY to Rs.1.03 billion. 

For the nine months, the Ceylinco Insurance group posted GWPs of Rs.25.4 billion, up 8.0 percent over the same period, last year. 

While the non-life business grew fast, the growth of the life business of the group during this period slowed down, the segmental data showed. 

For the nine months, the group paid benefits and claims of Rs.10.6 billion, up from Rs.9.9 billion paid a year ago. 

The company’s general insurance segment recently launched another industry-first—bundling up a hospitalization cover with its very popular ‘VIP On the Spot’ motor insurance, which has become a big hit in the market.