AIA Sri Lanka 1H revenue up 5% to Rs. 7.1 b

AIA Insurance Lanka PLC (AIA Sri Lanka) has announced a consolidated revenue of Rs. 7.1 billion in the first half up by 5% over the corresponding period of last year.

In a statement AIA Sri Lanka said delivering steady premium growth, consolidated revenue was up 5% to Rs. 7,105 million and the increase was due to higher net earned premiums in both life and general insurance businesses.

Composite gross written premium (GWP) income grew by 18% to Rs. 5,844 million and GWP of conventional life products grew 21% to Rs. 3,314 million, accounting for 86% of the overall life GWP.

AIA Sri Lanka’s GWP of life business up by 10% to Rs. 3,867 million and GWP of general insurance increased by 38% to Rs. 1,977 million.

The Company’s consolidated profit after tax amounted to Rs. 72 million in the first half, down from Rs. 146 million in the corresponding period in 2014. “The lower profit was mainly attributable to reduced investment income driven by lower interest rates and an increase in claims in the general insurance business,” AIA said.  The surplus of the life insurance business is reported annually at the year end and is therefore not included in the half-year profit.

Shah Rouf, Chief Executive Officer of AIA Sri Lanka, said: “AIA Sri Lanka delivered a solid performance with 18% increase in our overall combined GWP compared with the first half of 2014 and will build on this growth momentum in the second half.”

William Lisle, Chairman of AIA Sri Lanka, said: “I am pleased to see the solid performance achieved by AIA Sri Lanka as I recently assumed my new role as the Chairman of the Company. 

I believe a strong foundation has been laid for AIA Sri Lanka to benefit from the dynamic growth opportunities in the country. We will continue to leverage on AIA Group’s expertise and understanding of the Asian business for the benefit of our customers in Sri Lanka.”