Ceylinco Life leads for ninth year with premium income of Rs. 10.8 b in 2012

Record premium income of Rs. 10.83 billion for the 12 months ending 31 December 2012 has enabled Ceylinco Life to end the year with a market share of 29%, a full nine percentage points ahead of the country’s second largest life insurer.

Significantly outperforming the industry, the company achieved growth of 10.1% in premium income and improved Investment and Other income by a solid 22.05% during the year to post total income of Rs. 15.65 billion.

Gross Written Premium income grew by Rs. 996 million over 2011, while Investment and Other income increased by Rs. 872 million, the company said. Ceylinco Life sold 153,938 new Life policies in this period at a monthly average of 12,828, achieving an overall improvement of 7.5% in new business.

The size of the company’s investment portfolio increased by Rs. 3.8 billion to Rs. 44.2 billion as at 31 December 2012, with investments pertaining to policyholders reaching Rs. 41.7 billion, reflecting a growth of 8.9%.

Ceylinco Life made a net transfer of Rs. 6.765 billion to its Life Fund for the 12 months, resulting in the Life Fund growing to Rs. 45.11 billion at the end of the year.

Commenting on these results, Ceylinco Life Managing Director/CEO R. Renganathan said: “Our success did not come easy. Competition was intense, as it should be, and the challenges were numerous. Market conditions were not ideal, and the ever increasing impact of the rising cost of basic needs on disposable incomes continued to affect the industry. Yet, Ceylinco Life prospered and grew by focussing on fundamentals.”

He said prudent management of the company’s funds was also a key to operational success. At the end of the year reviewed, Ceylinco Life’s investment portfolio comprised of Government Securities (47%); Licensed Private Banks (18%); State Banks (16%); Real Estate (10%); Corporate Debt (5%) and Others (4%).

Renganathan disclosed that Total Assets of Ceylinco Life grew by Rs. 4.2 billion or 8.6% to Rs. 52.89 billion at 31 December 2012.

A highlight of the year’s performance was the maintenance of Ceylinco Life’s solvency margin at an impeccable 10 times the legal requirement, providing shareholders and policyholders yet another indicator of its financial strength.

A computation of the excess of assets over statutory liabilities, the Solvency Margin is an important indicator of an insurance company’s ability to meet the obligations arising from its insurance contracts at any time. The prevailing insurance regulations require all insurance companies to maintain a solvency margin not less than 5% of their statutory liabilities at all times.

Ceylinco Life also paid net claims and benefits in excess of Rs. 3.9 billion to policyholders during the year, an increase of one billion or 35% over the previous year. This included maturity and other survival benefits, claims, and annual bonuses.

Independently rated one of Sri Lanka’s most valuable brands, Ceylinco Life has maintained its leadership of the country’s long term insurance sector from 2004 onwards. The company operates the largest branch network among local life insurance companies, and has won multiple international and local awards for its commitment to the community and success in brand equity building.