Ceylinco Life’s income tops Rs. 17 b in nine months

Sri Lanka’s life insurance market leader Ceylinco Life has reported a total income of Rs. 17.165 b for the nine months ending 30 September 2016, reflecting growth of 15.3% over the corresponding period of last year.

Premium income for the nine months improved by 11% to Rs. 11 b, while investment and other income grew by 23.6% to Rs 6.16 b in the review period, the company said.

The company’s investment portfolio grew by a noteworthy Rs 13.24 b or 19.7% over the nine months to pass the Rs. 80 b mark at the end of the third quarter of 2016, manifesting Ceylinco Life’s prudent investment strategies.

The company’s investment portfolio as at 30 September 2016 comprised of Government Securities (57%), Licensed Private Banks (10%), State Banks (2%), Real Estate (7%), Corporate Debt (23%) and others (1%). These 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).

A transfer of Rs. 6.7 b in respect of the review period saw the company’s Life Fund grow to Rs. 74.72 b as at 30 September 2016, while total assets increased by Rs. 14 b or 17.6% to Rs. 94.37 b.

The shareholders fund grew by an equally impressive 16.87% to Rs. 10.5 b in the nine months reviewed.

“We are pleased with our performance in the year to date because it represents the ability of the company to generate solid operational growth even in non-conducive market conditions,” Ceylinco Life Managing Director/CEO R. Renganathan said. “It is no secret that disposable incomes continue to shrink, making life insurance beyond the means of many vulnerable segments. We continue to address this with affordable products and new delivery channels, while focussing on the fundamentals of the business.”

Ceylinco Life paid Rs. 4.93 b in net claims and benefits during the nine months reviewed, an increase of 12.5% over the corresponding period of 2015.

The company’s comparative figures for 2015 include a period prior to the segregation of the business of life insurance as required by Section 53 of the Regulation of Insurance Industry (Amendment) Act No. 03 of 2011.Ceylinco Life commenced operations as a standalone life insurance business from 1 June 2015.

Adjudged Sri Lanka’s Best Life Insurer in 2016 for the third consecutive year by World Finance, Ceylinco Life 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.