HNB Assurance maintains growth momentum

HNB Assurance and HNB General Insurance Ltd. Acting CEO Niranjan Manickm

HNB Assurance Plc (HNBA) maintained its growth momentum in the first quarter of 2015 despite challenging market conditions. 

The company, which recorded above market growth in 2014, achieved 20% in group turnover recording Rs. 1.37 billion as consolidated premiums, up from Rs. 1.15 billion achieved during the corresponding period of last year.

Premium income of Rs. 626 million was achieved by HNB Assurance Plc, the parent company conducting the life Insurance business. Life insurance premiums recorded a 10% growth while General Insurance, which is carried out by the fully-owned subsidiary, HNB General Insurance Ltd., recorded an impressive 29% growth by generating a premium income of Rs. 743 million. 

The growth seen in the Life segment of the business was mainly through Endowment policies as planned by the company, which was supported by MRP and other Single Premium investment type products. General Insurance growth was mainly influenced by a strong growth in motor insurance, generated through a variety of network partners and direct agents.

The consolidated Profit after Tax for the first quarter of 2015 was Rs. 15.5 million, which is lower than Rs. 53.9 million, recorded during the corresponding period of last year. This was mainly due to an increase in claims in the General Insurance business and the current investment climate also affected both lines of business.  

However, the company is confident profits will improve since value from the substantial growth achieved in the life and general insurance businesses will accrue in future. The current profit is only attributable to General Insurance and investment income from shareholders’ funds, with the profits emanating from the surplus of the Life Insurance business being calculated and declared at the end of the year.

Commenting on the progress of the company, Acting CEO Niranjan Manickam noted: “The strong growth seen in both lines of business is very promising as our focused efforts to develop identified areas are beginning to meet expectations. We believe that both companies are now well-positioned to maximise the potential market opportunities and expand their presence, while creating sustainable value to all stakeholders.” 

HNB Assurance Plc is one of the fastest growing insurance companies in Sri Lanka with a network of 52 branches.  HNBA is a life insurance company with a rating of A (lka) by Fitch Rating Lanka for ‘National Insurer Financial Strength Rating’ and ‘National Long-term Rating’. HNB General Insurance, incorporated in 2015, specialises in a variety of motor and non-motor insurance solutions and is a fully-owned subsidiary of HNB Assurance Plc.  

HNBA is also rated within the Top 100 Brands and Top 100 companies in Sri Lanka by LMD. HNB Assurance also recently won international awards for Brand Excellence, Digital Marketing and HR Excellence and also won many awards for its annual reports at the award ceremonies organised by the Institute of Chartered Accountants of Sri Lanka, ACCA Sri Lanka and SAFA (South Asian Federation of Accountants).