HNB Assurance Group completes impressive 3Q with 21% growth in GWP

HNBA CEO Lasitha Wimalaratne

HNBGI CEO Sithumina Jayasundara

HNB Assurance PLC (HNBA) and its wholly owned subsidiary HNB General Insurance Ltd., has ended the third quarter with the Group figures indicating a Profit After Tax (PAT) of Rs. 583 million. 

In terms of Gross Written Premium (GWP), the Group recorded Rs. 13.6 billion growing by an impressive 21% compared to the previous year. HNBA in a statement said it exhibited exceptional growth during the period, achieving a growth rate twice that of the industry average, while HNB General Insurance Ltd. (HNBGI) also demonstrated a robust performance, growing at a staggering five times the industry average.

Chairperson Rose Cooray said: “I’m extremely delighted by the outstanding performance exhibited by HNB Assurance Group during the third quarter. Our consistent growth is a clear indication that HNB Assurance as a group is in the forefront of providing exceptional services and adapting to the ever-changing demands of our clientele.”

 “Amid the slow recovery of Sri Lanka’s economy following a period of significant challenges, both HNB Assurance and HNB General Insurance undertook strategic measures to fortify their operations, which involved equipping themselves with enhanced capabilities, innovative strategies and resilient frameworks to navigate the economic fluctuations and effectively cater to the market,” she added. In terms of the performance the group GWP grew by 21% compared to the same period last year. The Group Assets surpassed the Rs. 48 billion mark to reach Rs. 48.42 billion with a growth of 18%. Over the last 10 months, the total equity along with the life fund notably surged, reaching a significant milestone of Rs. 9.1 billion and Rs. 30 billion, representing a remarkable increase of 17% and 24% respectively.

“The consistent progress achieved quarter by quarter can be attributed to the clear vision both companies possess regarding their vision and strategic trajectory for the upcoming years. It is truly remarkable to see the commitment of the teams towards our long-term objectives which has also helped us to be creative and make effective decisions. On behalf of the board, I express my gratitude to the leadership, management and teams for their efforts,” Chairperson Cooray added.

HNBA CEO Lasitha Wimalaratne said: “Our strategic focus of enhancing and improving our distribution channels has yielded tremendous results, notably reflected in our impressive 19% growth in GWP to reach Rs. 7.8 billion, which is almost double the growth rate of the industry and the highest among the top tier players, also, the 26% increase in new business premiums compared to the previous year. In addition to our steady and sustainable growth, winning the ‘Best Distribution Initiative’ award, recognised by Insurance Asia, was extremely heartening as it validated our efforts and well-rounded strategy.” 

Eager to venture into the final quarter and witness its unfolding, Wimalaratne emphasised the significance of maintaining this momentum. “While we are happy about the progress made, I believe it’s crucial to sustain it and end the year on a high. Our team is motivated just to do that and with the surplus transfer from the life fund yet to take place, our collective aim is to close the year strong, ensuring substantial benefits for our shareholders.” 

HNBGI saw its GWP reach Rs. 5.9 billion growing by 24% over the same period last year. CEO Sithumina Jayasundara said: “We have been investing heavily in revamping our core systems and building a solid digital platform, setting us up for the future. These changes are all about making things better for our customers and equipping ourselves for the long run. I’m extremely delighted to see these efforts paying off as we have seen a steady growth in our GWP of 24% when compared to last year, which in comparison to the current industry growth rate reflects a five-time increase. Diving further into the numbers, our non-motor sector saw a 58% growth compared to the industry’s 12%, while our motor portfolio grew by 6% despite the industry’s negative growth of 1.3%. I must convey my sincere appreciation to all sales and other support teams for their efforts and hard work, ensuring that we continue to make remarkable progress as an organisation.”