HNB Assurance Group powers ahead with 21% GWP growth in 2024

HNB Assurance Group (HNBA and HNBGI) said it has posted yet another year of remarkable performance, improving on its impressive growth rate maintained over the last few years. 

For the financial year 2024, the HNBA Group achieved a 21% increase in Gross Written Premium (GWP), growing from Rs. 18.8 billion to Rs. 22.7 billion. The Group also recorded a consolidated Profit After Tax (PAT) exceeding Rs. 1.8 billion, marking a 7% growth compared to the previous year.

HNB Assurance PLC’s (HNBA) financial strength was highlighted by its upgraded Fitch rating, making it the only life insurance provider in Sri Lanka with an ‘A’ rating from Fitch Ratings Lanka. Complementing this, HNB General Insurance (HNBGI) also achieved an ‘A’ rating, positioning it among the few general insurance companies in Sri Lanka to earn this distinction.

HNBA Group Chairman Stuart Chapman said: “I am extremely proud to note that the HNBA Group has once again exceeded expectations, delivering strong results that showcase our strategic foresight and operational efficiency. In terms of our numbers, over the past four years, we have consistently delivered strong growth, with a remarkable 22% average annual increase in GWP as a Group. This achievement underlines our focus on sustainable business practices. Our share price growth of 42% at end of 2024 reflects the trust the market places in our stability. It is also remarkable to note that both HNBA and HNBGI have maintained robust capital adequacy ratios of 379% and 219%, respectively, well above the regulatory requirement of 120%.”

The Group’s Funds Under Management increased by 24% in 2024, reaching Rs. 55 billion, highlighting the strength of the investment strategy as a key pillar in maintaining the Group’s financial stability and profitability. “When it comes to insurance, trust is an absolute must and this remains central to our operations, as evidenced by the fact that we honoured claims exceeding Rs. 6.7 Billion, with 98% of complaints being resolved successfully. This track record is a direct result of the dedication and hard work of our team, along with our focus on building lasting relationships with our policyholders,” added Chapman. 

HNBA CEO Lasitha Wimalaratne said: “Looking back at 2024, I am genuinely proud of the strides we have made as a company. Achieving a 7.5% market share is a huge milestone and we are well on our way to hitting that 10% target by 2026. Our New Business Premiums (NBP) grew by 27% and our overall GWP up by 26% compared to 2024, which speaks volumes about the trust our customers place in us. Our investments also paid off, with an 8% boost in investment income, reaching Rs. 6.9 billion.”

“Personally, what stood out last year was, how we weathered challenges together. Despite the higher operating costs from our IT upgrades, we managed to close the year with a 3% growth in profits. Additionally, our Total Assets have grown by 24% to reach Rs.53 billion with a PBT of Rs. 2.4 billion and PAT of Rs. 1.66 Billion. I’m extremely thankful to all the teams for their collective efforts in driving our business from strength to strength,” he added.

HNBGI CEO Sithumina Jayasundara said: “2024 was a year of resilience and innovation for HNBGI, as we sustained our remarkable growth trajectory, doubling the industry growth rate for the fifth consecutive year. Our overall GWP growth of 14%, compared to the industry’s 6.9%, reflects the strong momentum we continue to drive. Notably, our non-motor segments surged by 24%, with marine, fire and engineering insurance achieving exceptional growth of 166% and 27% respectively, which is the highest among the top 10 general insurers in the country. Despite challenges in the motor insurance sector, we remained agile, diversified our offerings, and secured a solid 6% growth.”

“One of the aspects we paid close attention to during 2024 was customer satisfaction which reflected in our renewal retention ratios of 77% for motor and 82% for non-motor segments, as well as a remarkable Net Promoter Score of 77. These figures show the trust and loyalty our customers have in us. Additionally, we achieved a 59% growth in (PAT), and a market share of 7% which demonstrated the success of our strategy of driving sustainable growth in an uncertain environment. With our total assets reaching Rs. 10.2 billion, a 7% increase, we are confident that our approach is positioning HNBGI for long-term success,” added, Jayasundara.