Asian Alliance Insurance records 54% growth in first half

Asian Alliance Insurance PLC has announced impressive results for the first six months of 2012reflecting a robust revenue performance by both Life and Non Life divisions of the company.

During this period, the company surpassed Rs. 1.5 billion in Gross Written Premiums, registering an exceptional 54% growth over the same period of the previous year. The Life sector contributed Rs. 933 million, recording 28% growth and Non Life sector contributed Rs. 602 million, with a 127% growth for this outstanding performance.

During the period under review the company recorded a highly commendable combined Underwriting Result of Rs. 266 million, with a 149% growth over the corresponding period of last year. Financial performance of the two core segments, Life and Non Life operations contributed to the strong growth in Underwriting Result which demonstrates the terrific operational capability of the company and in-depth competence in core business activities.

Asian Alliance is now surging forward as part of the diversified Softlogic Group and is in the process of rolling out a number of initiatives relating to Health Insurance in tandem with the group’s healthcare sector – Asiri Hospitals. The company is also teaming up to market Non-Life insurance through the Softlogic Retail network and Softlogic Finance branch network, thereby reaping significant synergies relating to distribution and cost efficiency.

The company’s net loss before tax of Rs. (25.8) million for the first half of year 2012 was significantly below the corresponding period due to the above improved performance and was reported on the basis of the new IFRS guidelines. Whilst the equity component of the investment portfolio was affected by the performance of the Colombo Bourse, the increase/decrease in fair value of such investments have been adjusted under Other Comprehensive Income as per the SLFRS/LKAS guidelines.

The financial statements for the half year ended 30 June 2012 have been prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRS/LKAS) which have materially converged with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

This interim report is the company’s first published under the new IFRS guidelines and the previous year’s financials have been reported under SLAS with the impact analysis disclosed and adjusted to Retained Earnings. The report also covers the key policy changes as required for first time adoption. The effect of the transition from SLAS’s to SLFRS’s has also been presented in the reconciliation statements and accompanying notes to the reconciliation.

The consistently improving performance has strengthened solvency in both Life and Non Life divisions well above the required margin.RAM Ratings Lanka has re-affirmed the company’s claims-paying ability of BBB- , reinforcing a stable outlook.