Allianz Lanka continues positive development in third quarter

Wednesday, 27 November 2013 00:22 - - {{hitsCtrl.values.hits}}

The fully owned subsidiary of German based insurance conglomerate, Allianz Lanka continued its positive growth trajectory in the 3Q 2013 by achieving a profit before tax of Rs. 213 million, a 19% growth over last year whilst the underwriting profits increased by 26% YOY. Allianz Lanka expanded the distribution network to 43 branches by adding 18 branches this year to supplement an ambitious retail growth strategy.

“Despite heavy investments on expansion of our branch network and recruitment, we have continued to improve our profitability and we have surpassed the industry norms,” Allianz Lanka CEO Surekha Alles said. The non-life company achieved a gross written premium of Rs. 1.2 billion in the third quarter, which is 12% above the previous year’s figure. Whilst continuing the strong presence in corporate segments inroads were made to retail segments through the distribution network which was expanded to rural areas. The life company recorded a 50% growth YOY by achieving GWP of Rs. 566 million. The branches and distribution teams of the Northern Province continued their outstanding performance whilst commendable performances were achieved from other geographical markets. In the third quarter of 2013, Allianz Group continued its good development from the first half of the year despite negative foreign currency effects. At 25.1 billion euros, revenues were close to the previous year’s level of 25.2 billion euros, a decline of 0.2%. Operating profit was 2.5 billion euros, declining 0.7% from the previous year’s third quarter. Net income attributable to shareholders increased 6.3% to over 1.4 billion euros from under 1.4 billion euros. Operating profit in property and casualty insurance increased over the reporting period despite storms in Europe in July and August. In the life and health insurance segment, statutory premiums rose due to strong demand. At the same time, the volatile investment environment put pressure on the segment’s profits. Asset Management produced good results despite prevailing market volatility. The conglomerate solvency ratio of 177% on 30 September, 2013, remained at the same high level as on 30 June, 2013. Shareholders’ equity rose over the reporting period to 48,770 million euros from 47,866 million euros on 30 June, 2013. “Given the positive development of Allianz Group for the first nine months of 2013, we now expect our operating profit for the full year to be slightly above 9.7 billion euros, the upper end of our previously stated target range,” said Allianz SE, Germany Chief Executive Officer Michael Diekmann. Allianz Insurance Lanka Ltd. is a fully-owned subsidiary of Allianz S.E. of Germany, the leading property-casualty insurer globally and rank among the top five in the life/health insurance business. Together with its customers and sales partners, Allianz is one of the strongest financial communities. About 78 million private and corporate customers rely on Allianz’s knowledge, global reach, capital strength and solidity to help them make the most of financial opportunities and to safeguard themselves against risks. In 2012, around 144,000 employees in over 70 countries achieved total revenue of 106.4 billion euros and an operating profit of 9.5 billion euros. Benefits for our customers reached 89.2 billion euros. This business success with insurance, asset management and assistance services is based increasingly on customer demand for crisis-proof financial solutions for an aging society and the challenges of climate change. Transparency and integrity are key components of sustainable corporate governance at Allianz SE.