Robust topline and bottom line growth for HNB Assurance in 1H

Thursday, 15 August 2013 00:00 - - {{hitsCtrl.values.hits}}

HNB Assurance PLC recorded robust growth in profits during the first half of FY 2013, with Profit Before Tax (PBT) expanding by 16% and Profit After Tax (PAT) escalating by an impressive 23%, as per the latest interim results released to the Colombo Stock Exchange. These results are impressive not only because of the strong growth rates, but also because this marks the first instance the company surpassed the Rs. 100 million mark in post-tax profits during the first half of a financial year. Accordingly, the PAT of the company stood at Rs. 104.8 million for the period, while PBT also increased to Rs. 127.3 million.

The strong profit growth signals the effectiveness of the company’s business practices and the success of the policies adopted to remain a resolute player in the industry despite challenging market conditions. A key contribution towards profits was also received through investment income, which recorded remarkable growth over the period. With regard to life insurance, it is pertinent to note that the half-year profits recorded by the company exclude any surplus from its life insurance business, as life insurance surplus transfers are only conducted at the end of the financial year, subsequent to the valuation of the life fund by a consultant actuary. The company was also successful in strengthening its top-line over the first half of FY 2012, where the combined turnover, expressed as Gross Written Premium (GWP), of both life and non-life insurance businesses escalated by 15% over the same period of the previous financial year. This achievement was driven by an impressive 29% growth in life insurance GWP while non-life insurance GWP also contributed with a modest growth of 5%. Accordingly, the combined GWP achievement for the period stood at Rs. 1,818.6 million, with a contribution of Rs. 892.2 million from the life insurance business and Rs. 926.4 from the non-life insurance business. HNB Assurance bears a national long-term rating and an insurer financial strength rating of ‘A (lka)’ with a stable outlook, as affirmed by Fitch Ratings Lanka Ltd. in 2013. HNB Assurance PLC is one of the fastest growing insurance companies in Sri Lanka with a network of 51 branches. HNBA is also rated within the Top 100 Brands and Top 100 companies in Sri Lanka by LMD and HNB Assurance recently won an international award for brand excellence and HR excellence and also won five main awards for its 2012 annual report at the award ceremonies organised by the Institute of Chartered Accountants of Sri Lanka, ACCA Sri Lanka (Association of the Chartered Certified Accountants) and SAFA (South Asian Federation of Accountants)