HNB Assurance records steady 41% GWP growth; HNB General Insurance GWP up 24% in 1Q

HNB Assurance PLC Group said it has delivered a robust performance during 1Q22, recording a Profit After Tax (PAT) of Rs. 235 million, reflecting an impressive growth of 144%, compared to the PAT of Rs. 96 million recorded during the corresponding period of 2021. 

HNBA Chief Executive Officer  Lasitha Wimalaratne

HNBGI Chief Executive Officer Sithumina Jayasundara

The Group recorded a Gross Written Premium (GWP) of Rs. 4.3 billion depicting a notable growth of 33%.

HNB Assurance PLC (HNBA) and its fully owned subsidiary, HNB General Insurance Ltd (HNBGI) Chairperson Rose Cooray said: “In spite of several macro-economic challenges prevailing in the market, HNBA and HNBGI delivered an outstanding performance during the first quarter of the year. Both HNBA and HNBGI held a firm stands in delivering these stellar results which contributed to the top line and profitability growth of the Group. These results demonstrate our customer-centric and well-curate business strategies in capturing markets with growth potential.” 

The Life Insurance business recorded a GWP of Rs. 2.3 billion and the General Insurance business recorded a GWP of Rs. 1.9 billion, showcasing an impressive growth of 41% and 24% respectively. Other Revenue of the Group surpassed Rs. 1 billion during 1Q22 marking a 30% growth. During the period, Total Assets of the Group surpassed Rs. 37 billion and Financial Investments surpassed Rs. 30 billion. The Investment Income of the Group for the period was Rs. 938 million with an outstanding growth of 40% compared to corresponding period of the previous year and continued to maintain an investment portfolio with healthy credit quality.  

“The Group remains well focused on its clear motive to explore and capture new markets by providing an innovative and a superlative customer experience while maxing shareholder returns,” Cooray added. 

HNB Assurance PLC CEO Lasitha Wimalaratne said: “HNBA concluded another successful quarter showcasing a steady and stable growth momentum, amidst increasing challenges in the external environment.” 

During 1Q22 HNBA recorded a GWP of Rs. 2.3 billion, showcasing a stellar growth of 41%. During the period, the Life Insurance fund reached Rs. 21.4 billion. The Capital Adequacy Ratio (CAR) of HNBA during 1Q22 stood at 281%. This further reaffirms the Company’s financial stability as CAR is well above the minimum stipulated rate of 120% as directed by the Regulator. 

“Owing to our promise, HNBA settled Insurance Benefits and Claims amounting to Rs. 527 million. These results are a testament to our well-focused strategies and collective efforts of all teams,” he added.

HNBGI Chief Executive Officer Sithumina Jayasundara said: “During a challenging period for the entire insurance industry, HNBGI was able to deliver steady financial results capitalising on its service and operational excellence.” 

Surpassing the industry growth rates, HNBGI recorded a GWP of Rs. 1.9 billion showcasing an impressive growth of 24% during 1Q22. 

“The Company continued to deploy its agile business strategies despite the on-going economic challenges and was able to seize several growth opportunities,” he added. 

The Miscellaneous and Motor Insurance segments delivered a notable performance followed by Fire and Engineering segments. During the period, the Company settled Insurance Benefits and Claims amounting to over Rs. 830 million showcasing our steady commitment to our customers. 

Demonstrating the Company’s strong financial footing, the Capital Adequacy Ratio (CAR) of HNBGI stood at 247%, well above the regulatory requirement. The General Insurance Contract Liabilities surpassed Rs. 4.2 billion. 

“As one of the two Fitch Rated General Insurers in the country with an A+ (lka) rating for ‘National Insurer Financial Strength’, HNBGI will continue to steer its course through many challenges to further consolidate its footprint in the market whilst sustaining our core business model and delivering value to all stakeholders,” Jayasundara added.