Softlogic Life grows 20% in 1Q 2024, posts 7.2 b GWP

Softlogic Life Chairman Ashok Pathirage

Softlogic Life Managing Director Iftikar Ahamed

Softlogic Life recorded another quarter of robust financial performance in a challenging business environment, posting Gross Written Premium (GWP) of Rs. 7.2 billion during the first three months ending 31 March (1QFY24). The top-line growth is an increase of 20% compared to 3% during the corresponding period of last year. 

The burdens heaped on customers amidst numerous economic difficulties have been alleviated somewhat due to having purchased insurance where Softlogic Life has steadfastly supported its policyholders during Q1 as well, demonstrating an unwavering commitment to meeting all obligations whilst also seeking to enhance customer benefits. The company has demonstrated its full commitment to policyholders by paying out claims and benefits of Rs. 3.4 billion for the quarter, continuing from Rs. 12.8 billion that was paid during 2023, underscoring Softlogic Life’s resolve to uphold its said promise to all policyholders. 

Profit after tax (PAT) for the period in review rose to Rs. 854 million, an increase of 70% YoY and Profit before tax (PBT) grew by 46% compared to last year to stand at Rs. 1.2 billion. Total assets of the company stood at Rs. 51.8 billion, while total equity was recorded at Rs. 12.8 billion. Furthermore, financial investments of the company stood at Rs. 43.5 billion which is 84% of the total assets of the company. During the period, the company recorded a Return on Equity (ROE) of 23.5% while continuing to maintain a Capital Adequacy Ratio (CAR) of 367% as at Dec 2023 which is well above the regulatory requirement of 120%. 

Standing tall as the second-largest life insurer in the market, Softlogic Life’s growth story has been exceptional. When comparing the company’s growth in the last 10 years, Softlogic Life reported a 10-year GWP Compound Annual Growth Rate (CAGR) of 26% compared with the industry’s 10-year GWP CAGR growth of 14%. Furthermore, Softlogic Life continues to boost insurance coverage across Sri Lanka, with over 700,000 active policies whilst protecting more than 1.3 million individual lives. 

Amidst economic challenges and market volatility, Softlogic Life’s notable performance in Q1 underscores the company’s steadfast dedication to enhancing value and delivering stability to all its stakeholders and highlights the company’s resilience in navigating economic adversities. This growth momentum also emphasises Softlogic Life’s commitment to safeguarding the wellbeing and the much-needed financial security of its policyholders, further cementing Softlogic Life’s reputation as a reliable and trusted life insurance provider that goes the extra mile to deliver its promises to its policyholders

Softlogic Life Chairman Ashok Pathirage commented, “The ongoing challenges have been a true test for Softlogic Life to showcase resilience, responsiveness and innovation. Our distribution model, strategic initiatives and the robust execution of those strategies, process reengineering efforts backed by digital technologies to ensure overall efficiency and business continuity has helped the company outdo last quarter’s results and drive strong performance during this quarter. We remain bullish on the industry and are happy to note that further to the interest that we submitted for SLIC Life, we have now been pre-qualified to participate in the RFP stage.”

Commenting on the results, Softlogic Life Managing Director Iftikar Ahamed commented, “We continue to see great prospects for Life and Health insurance in the market and are always at the forefront of trying to see how better we can serve our customers. We have come through many difficulties and remained resilient, taking all possible measures to ensure business sustainability. We have already had a great start to 2024 and I am confident that our resilient and proactive attitude will continue to drive the success of Softlogic Life for the remainder of this year as well.”

Holding its promise to policyholders is at the core of its business and Softlogic Life continues to bring about disruptive innovation and digitalisation to elevate the quality of life for Sri Lankans. Their recent industry-first initiatives, including AI powered one-day automated claims settlement, 2-minute hospitalisation claim settlement, a 100% digitalised sales platform, automatic policy issuance, and mobile-based micro-products. These innovations have set new industry standards and played a pivotal role in strengthening Softlogic Life’s competitive position. Softlogic Life’s success extends beyond operational excellence, with unprecedented success at prestigious financial award ceremonies such as the CA Annual Report (TAGS), and CMA Integrated Reporting Awards.