Ceylinco Life’s 1H pre-tax profit up 64% to Rs 1.628 b

Life insurance market leader Ceylinco Life has posted profit before tax of Rs 1.628 billion for the six months ending 30 June 2017, recording noteworthy growth of 64% over the corresponding period of last year.

Building on a solid first quarter, the company generated Rs 7.418 billion in Gross Written Premium at the end of the first half and Rs 4.744 billion in investment income, which was up 23%.   Net income at Rs 11.949 billion reflected an improvement of 10%.

Profit after tax grew by 59% to Rs 1.357 billion for the six months, with income tax nearly doubling that paid in respect of the first half of 2016. Basic earnings per share for the six months stood at Rs 27.14, as against Rs 17.07 for the first half of the previous year.

Ceylinco Life’s investment portfolio reached Rs 92.417billion as at 30th June 2017, representing an increase of Rs 11.666 billion or 14% since 31 December 2016.

The company’s Life Fund stood at Rs 82.323 billion at the end of the six months reviewed, a growth of Rs4.398 billion or 6per cent. In May this year, the Ceylinco Life Life Fund became the fastest in the local market to cross Rs 80 billion.

“We believe this performance is a good illustration of the momentum that has kept the company ahead of the competition for the past 13 years,” Ceylinco Life Managing Director/CEO R. Renganathan said. “General business sentiment remains somewhat subdued and the insurance market is fiercely competitive. Nevertheless our continuing emphasis on business fundamentals and judicious investment strategies enables us to maintain the momentum.”

Ceylinco Life paid Rs 3.262 billion in net benefits and claims in the six months reviewed, a decrease of 1% over the corresponding period of last year.

Total assets of the company grew by 13% since 31 December 2016 to Rs109.132 billion at 30 June 2017.

Ceylinco Life ended 2016 with Rs 23.43 billion in total income, with gross premium income of Rs 15.03 billion and investment income of Rs 8.78 billion.

Adjudged Sri Lanka’s Best Life Insurer in 2016 for the third consecutive year by World Finance, Ceylinco Life commenced operations in January 1988 and has close to a million lives covered by active policies. The company is acknowledged as the benchmark for innovation in the local insurance industry for its work in product research and development, customer service, professional development and corporate social responsibility.