Arpico Insurance revises FY25 profit down 97% after actuarial adjustment

Arpico Insurance PLC yesterday disclosed the revision of its profit for the financial year ended 31 December 2025, sharply lower after recognising an insurance contract liability that was not reflected in its unaudited fourth-quarter financial statements.

In a filing to the Colombo Stock Exchange (CSE), the insurer said its unaudited profit for the year was reported at Rs. 230.8 million, but the audited annual report showed a profit of only Rs. 8.03 million following actuarial and audit adjustments.

The company attributed the variance primarily to an insurance contract liability of Rs. 320.08 million that was not identified by the appointed actuary when the unaudited quarterly financial statements were prepared and published. The liability was subsequently identified and reported by the actuary before the audited financial statements were finalised.

In addition to the insurance liability adjustment, the audited accounts included audit adjustments of Rs. 44.99 million and a deferred tax impact of Rs. 142.29 million.

According to the reconciliation provided by the company, the Rs. 230.82 million unaudited profit was reduced by the insurance contract liability and audit adjustments before being partly offset by the deferred tax benefit, resulting in a final audited profit of Rs. 8.03 million.

Arpico Insurance said the adjustments were necessary to present a true and fair view of the company’s financial position as at 31 December 2025.

The company said it remains committed to transparency and that the adjustments were made in the best interests of the company.