HNB Assurance Group records 22% growth in GWP

HNB Assurance PLC (HNBA) and HNB General Insurance Ltd. (HNBGI), has continued to build on their impressive performance, recording strong financial growth and achieving  impressive operational success during the third quarter of 2024. 

With a focus on innovation, customer-centricity and expanding their market presence, both companies for the nine months ending 30 September 2024, reported a Gross Written Premium (GWP) of Rs. 16.6 billion, a 22% increase when compared to the same period last year. This growth was fuelled by HNBA’s GWP of Rs. 9.9 billion, reflecting a 27% increase, and HNBGI’s GWP of Rs. 6.7 billion, marking a 14% increase. Additionally, the Group’s PAT saw a notable growth of 26%, rising from Rs. 583 million to Rs. 734 million when compared to the same period last year. These exceptional financial performances were further fortified by the affirmation of ‘Insurer Financial Strength’ ratings of HNBA and HNBGI as ‘A-’ (lka) from Fitch, with a stable outlook.

HNBA and HNBGI Chairman Stuart Chapman said: “Our robust performance this quarter speaks to the strength of our team and the focus we have maintained in expanding our reach. The year 2024, we navigated with careful optimism, mindful of the elections and the unpredictability they could bring. Despite these uncertainties, our teams not only anticipated the challenges but surpassed expectations, achieving outstanding growth targets.” 

“The Group’s GWP saw a substantial increase of 22% compared to the same period last year. The Group’s assets grew by almost 15%, rising to Rs. 58.9 billion, during the first nine months. Additionally, our total equity touched Rs. 10.6 billion and our life fund reached Rs. 37.6 billion, a noteworthy increase of 23%, during the first three quarters of the year. These achievements reflect our commitment to sustainable growth, positioning us strongly for the future as we continue to create value for our stakeholders,” Chapman added.

HNB Assurance CEO Lasitha Wimalaratne said: “I am delighted to note that we have continued to maintain our remarkable financial performance during the third quarter and maintain our position as the only fitch A- rated life insurance provider in Sri Lanka.” 

“Our Gross Written Premium has grown by 27%, reaching Rs. 9.9 billion from Rs. 7.8 billion when compared to the same period last year. The company posted a 6% growth in profitability by recording Rs. 550 million as profit after tax. It must be noted that the company is yet to recognise surplus from the Life fund which will be at the end of the year. An achievement which highlights the success of our strategic focus in offering accessible and innovative insurance solutions that truly resonate with the needs of our customers, through collaborations and new partnerships,” Wimalaratne added.

For HNBGI, the Q3 performance highlights its proactive stance in navigating challenges while seizing growth opportunities. 

HNBGI CEO Sithumina Jayasundara said: “Our commitment to improved underwriting and efficient claims management has been instrumental to our success. We continue to make considerable strides in offering tailored insurance solutions that resonate with our clients, which has helped us achieve a GWP of Rs. 6.7 billion, a 14% increase when compared to the same period last year. Our business and efficiency improvements allowed us to increase our profit after tax threefold, to reach a 187% growth when compared to the same period last year. Notably, our focus on diversifying our portfolio beyond motor insurance has yielded significant growth, with our non-motor segment growing by 22% when compared to the same period last year. Within this category, we saw remarkable performances in marine, fire, and engineering insurance lines, which have grown by 121% and 27%, respectively, highlighting our proactive strategy to expand into areas of high demand.”