HNB Assurance Group records 20% growth in GWP in 1H

HNB Assurance and HNB General Insurance Chairman Stuart Chapman

HNB Assurance CEO Lasitha Wimalaratne

HNB General Insurance CEO Sithumina Jayasundara

HNB Assurance PLC (HNBA) and HNB General Insurance Ltd., (HNBGI), have recorded outstanding financial results for the first half of 2024. 

Both companies demonstrated remarkable resilience, leveraging strategic foresight to deliver sustained growth within the competitive insurance landscape. The Group recorded an impressive Gross Written Premium (GWP) of Rs. 10.9 billion, which is a 20% growth when compared to the corresponding period last year.

Reflecting on the Group’s financial accomplishments, Chairman Stuart Chapman expressed his confidence in the organisation’s direction, stating, “Our continued financial success is a direct result of our strategic focus on technology, operational efficiency, and customer satisfaction. With so much going on around us, it is easy to lose focus, so we as a team have remained steadfast in our commitment and continue to deliver value to all our stakeholders and the results speak for themselves. The Group’s overall GWP growth of 20% and PAT growth of 14%, certainly reflect this. We honoured claims and maturities exceeding Rs. 3.3 billion as a Group, further solidifying the trust our policyholders have placed in us. This trust we’ve earned is a key driver, helping us continuously improve and achieve substantial growth in our Group assets, which have risen to Rs. 56.5 billion from Rs. 51 billion over the past six months. Additionally, our earnings per share increased by 14% and our investments grew from Rs. 43.8 billion to Rs. 48.7 billion during the same period positioning us well to capitalise on opportunity that lie ahead.”

HNB Assurance PLC CEO Lasitha Wimalaratne said: “Starting the year with the prestigious title of “Best Life Insurance Provider” from the Indian Chamber of Commerce, we embraced the approach of “being the best in all we do” guided by the principles of Protection, Persistency and Productivity. Thus, this recognition has been a catalyst for us to not only maintain but elevate our standards across all facets of our operations, which was evident by our financials during the first half of 2024. 

“We have continued to maintain our growth way ahead of the industry growth rate achieving a total GWP of Rs. 6.4 billion, which is a 24% increase when compared to the same period last year. Additionally, our life fund grew significantly, rising from Rs. 30.6 billion to Rs. 35.2 billion. We also paid out maturities and claims totalling Rs. 1.5 billion. Our new business premium increased by 39%, long-term endowment grew by 24% while our total assets reached Rs. 47.6 billion.”

With an ambitious goal of achieving a 10% market share by 2026, HNB Assurance places a strong emphasis on the development of its people. 

“I must also make mention of the several honours we have received during the year, which includes the SLITAD People Development Award, acknowledgment as a Company with Great Managers, a Mom-Inclusive Workplace and recognition from the National Convention on Quality and Productivity, highlight our commitment to our people who also play a vital role on the growth of our organisation. These achievements in addition to our business-related accolades along with us recently being recognised as finalists for our marketing efforts at the Drum Awards and MobEx Awards certainly validate our efforts and execution,” added Wimalaratne.

HNB General Insurance (HNBGI) also experienced significant growth, with a substantial increase in its total GWP. Amidst a dynamic and complex market environment, HNBGI has demonstrated agility, not only adapting to changes but also seizing new opportunities.

HNB General Insurance CEO Sithumina Jayasundara, emphasised the importance of agility in driving the company’s success. “In today’s rapidly changing world, it is crucial to remain agile and responsive to market trends. At HNBGI, we continue to adjust our product offerings and invest in technology to meet the requirements of our customers. This, coupled with our focus on transformational initiatives, has significantly contributed to our business success, enabling us to achieve a GWP of Rs. 4.6 billion which represents a growth of 14% from last year and a three time increase when compared to the current industry growth rate.”

The company also saw significant growth in non-motor, fire and engineering, medical and marine insurance segments, outpacing the industry growth rate by a considerable margin. “The challenges with managing motor insurance due to rising costs is no secret, but our team has effectively leveraged on the non-motor segment, achieving growth more than 10 times the industry average and contributing Rs. 2.3 billion to our total GWP. Additionally, we have paid out net insurance claims and benefits of Rs. 2 billion, providing crucial support to our policyholders at their hour of need.”

Looking ahead, HNB General Insurance is poised to continue their growth trajectory expecting its investments in the new core system to take shape, “We are excited about the future as our new core system begins to take effect. This investment is improving our efficiency and service capabilities, allowing us to better meet the needs of our customers while capitalising on emerging trends and sustaining our growth momentum. Further throughout this year, we have actively pursued strategic partnerships to enhance our reach and provide additional value to our customers. Additionally, we launched HNBGI Loyalty Rewards collaborating with various partners to offer exclusive discounts to our policyholders, further delivering added value. We also introduced the short code ‘1303’ to access our 24/7 dedicated hotline anytime, anywhere,” added Jayasundara.