Ceylinco Life’s 1Q net profit up 58% to Rs. 673 m

Ceylinco Life has accelerated into FY 2017 posting robust income growth and exceptional profit growth for the three months ending 31 March.

Sri Lanka’s life insurance leader reports that profit before tax improved by a noteworthy 51% over Q1 2016 to Rs. 822.73 million. Profit after tax for the three months, at Rs. 673.34 million, reflected even higher growth of 57.8% despite a 26% increase in income tax for the period.

Gross written premium income was up 7.26% to Rs. 3.56 billion, the company said, while investment and other income grew by a remarkable 21.39% to Rs. 2.31 billion.

Ceylinco Life’s investment portfolio reached Rs. 85.98 billion as at 31 March, representing an increase of Rs. 5.23 billion or 6.48% since 31 December 2016 and Rs. 12.58 billion or 17.14% over the preceding 12 months.

The company’s Life Fund stood at Rs. 79.89 billion at the end of the quarter reviewed, a growth of Rs. 1.97 billion or 2.53% over three months.

“The figures for the first quarter are impressive, especially in the context of the prevailing volatility and uncertainty in the market,” Ceylinco Life Managing Director/CEO R. Renganathan commented. “We believe that our unrelenting focus on business fundamentals and astute investment strategies can be credited for this stellar performance.”

Ceylinco Life paid Rs. 1.6 billion in net benefits and claims in the three months reviewed, a decrease of 7.81% over the corresponding period of last year.

Total assets of the company grew by 5.4% over the three months to Rs. 101.738 billion.

At the end of the quarter under review, Ceylinco Life’s investment portfolio comprised of Government Securities (48%); Fixed Deposits (13%); Real Estate (9%); Corporate Debt (29%) and Others (1%). All investments are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No 43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL).

Ceylinco Life ended 2016 with Rs. 23.43 billion in total income, with gross premium income of Rs. 15 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.