Allianz Lanka delivers impressive results in 3Q 2015

Allianz Lanka continued its growth trajectory in both Life and Non Life companies during the third quarter of 2015, posting impressive results in all areas of business. 

Gross Written Premium (GWP) in the Non Life Company grew by 8% over 3Q 2014 figures, and reached Rs. 2 billion. This is a noteworthy performance in a fiercely competitive landscape of sharply declining premium rates. Profit before taxes also grew significantly by over 100% when compared with the previous year, to reach Rs. 87 million.

Among the factors that contributed to the company’s growth was the introduction of selective new products during the year, designed to cater to specific market needs. Among these was the international medical cover with a host of benefits that now make overseas medical treatment affordable to the average Sri Lankan. This medical cover meets a long-felt need in the Sri Lankan market, for healthcare insurance that covers the prohibitive costs of healthcare in a premier medical facility overseas. Several internal processes were also revamped to enhance customer convenience.

The Life Company kept pace with a record GWP growth of Rs 676 million, an increase of 14% over last year’s third quarter figures. The Life Company will continue to focus on new business growth, and is looking at introducing new products to the market in the near future.

“Sustainable growth is a key factor in today’s competitive environment,” said Allianz Lanka CEO Surekha Alles. “Sustainability is driven by many factors such as the right product mix, value for money, customer convenience and satisfaction, and technology. At Allianz, we don’t concentrate on growth for its own sake. We are happy with the qualitative growth we have achieved.” 

Parent company Allianz is also on track to meet 2015 targets. Over the first nine months of the year, Allianz Group total revenues rose 3.5% to 95.5 (92.2) billion euros. Operating profit remained stable at 8.15 (8.14) billion euros. Net income attributable to shareholders increased 3.9% to 5.20 (5.00) billion euros.

“In a volatile financial market environment, Allianz’s fundamentals remained at a solid level in all business segments in the third quarter. We expect the full year operating profit to grow and arrive in the upper end of our target range of 10.0 to 10.8 billion euros,” said Allianz SE CFO Dieter Wemmer.

In the third quarter of 2015, Allianz Group maintained revenues at a high level and achieved a solid operating profit, although both weakened slightly compared to one year ago. Total quarterly revenues were 27.5 (third quarter of 2014: 28.8) billion euros, a decrease of 4.3%. Operating profit was 2.45 (2.65) billion euros, down 7.5%. Net income attributable to shareholders amounted to 1.36 (1.61) billion euros, a decrease of 15.4%, in part due to one-off tax benefits in the year-earlier quarter.