AIA Sri Lanka achieves another profitable first half

Thursday, 15 August 2013 00:01 - - {{hitsCtrl.values.hits}}

AIA Insurance Lanka PLC yesterday in a statement announced consolidated revenue of Rs. 6,836 million for the six months ended 30 June 2013, up 18% over the same period in 2012. The results were driven by significant growth in both investment income and premiums and demonstrated the effective execution of its renewed growth strategy, following the acquisition by AIA Group Ltd. Total life gross written premium (GWP) was up 5% to Rs. 3,334 million. The strategy of focusing on protection oriented conventional life

products has been highly successful as GWP of conventional life products grew by 22% to Rs. 2,274 million, accounting for 68% of the total life GWP. General insurance GWP rose 13% to Rs. 1,388 million. Consolidated profit after tax excluding re-branding was Rs. 195 million – a growth of 19%. Consolidated profit after tax net of re-branding was Rs. 23 million. The consolidated profit reported excluded the annual surplus from Life business which will be determined after the year-end actuarial valuation and will be included in the financial results for the full year ending December 2013. AIA Sri Lanka’s newly appointed Chairman Gordon Watson said: “The growth in the first six months demonstrates a very successful consolidation and alignment with the AIA Group, laying a firm foundation for sustainable growth that I am confident will gather momentum and continue our growth strategy in the second half of the year.” CEO Shah Rouf said: “Since joining AIA, the company has experienced a tremendous transformation across all functions while AIA Group has further extended its presence in the Asian region. We remain confident about the future, particularly as being part of AIA has further strengthened our business with greater access to best practices to the benefit of our customers in Sri Lanka.” In December 2012, AIA Group completed the acquisition of the business now known as AIA Insurance Lanka PLC, and made its entry into Sri Lanka. AIA Group Ltd. and its subsidiaries (collectively AIA or the group) comprise the largest independent publicly listed pan-Asian life insurance group. It has operations in 17 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97% subsidiary in Sri Lanka, a 26% joint venture in India and a representative office in Myanmar. The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$ 147 billion as of 31 May 2013. AIA meets the savings and protection needs of individuals by offering a range of products and services including retirement savings plans, Life insurance and accident and health insurance. The group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents and employees across Asia-Pacific, AIA serves the holders of more than 27 million individual policies and over 16 million participating members of group insurance schemes. AIA Group Ltd. is listed on the main board of the Stock Exchange of Hong Kong Ltd.