AIA Sri Lanka reports strong 2015 results

AIA Insurance Lanka PLC yesterday reported strong financial results for the year ended 31 December 2015.

According to a statement issued by the company, Gross Written Premium (GWP) of the continuing operations, the main life insurance business, grew by 16% to Rs. 8.43 billion, driven by strong growth in regular premium new business.

Revenue of the continuing operations grew by Rs. 415 million to Rs. 12.2 billion, with increase in net earned premiums partially offset by unrealised investment losses in unit-linked funds due to movements in the equity market.

Profit after tax on continuing operations increased by 15% to Rs. 303 million due to increase in interest income from fixed income investment.

Consolidated profit after tax, including operating results and realised gain from divestment of the discontinued general insurance operations, was Rs. 1.5 billion. 

As announced previously, the company decided to fully focus on realising the exciting growth opportunities in the life insurance market, and therefore divested its wholly owned subsidiary AIA General Insurance Lanka Limited on 23 October 2015.

AIA Sri Lanka CEO Shah Rouf said: “The year was a key milestone in our company’s journey as we implemented our strategic decision to fully focus on realising the exciting opportunities in the life insurance market, one in which we recorded significant growth. I am particularly pleased to say that growth came from meeting customer needs through new products as well as improving our distribution reach and capabilities, in both our Agency and Bancassurance channels.” 

AIA Sri Lanka Chairman William Lisle said:  “I am delighted to see the growth and progress made by AIA Sri Lanka.  I look forward with optimism and great expectations to continuing the journey of AIA becoming the pre-eminent life insurer in Sri Lanka in the years to come.”

AIA Group acquired the business now known as AIA Insurance Lanka PLC (AIA Sri Lanka) in December 2012. AIA Sri Lanka is a top 3 Life insurer measured in terms of gross written premiums and the No. 1 writer of regular premium new business. (Source: Industry Survey – 2014)

AIA Group and its subsidiaries comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 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 representative offices in Myanmar and Cambodia.

It had total assets of $ 172 billion as of 31 May 2015. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 29 million individual policies and over 16 million participating members of group insurance schemes.