Thursday Nov 14, 2024
Thursday Nov 14, 2024
Monday, 22 October 2018 00:24 - - {{hitsCtrl.values.hits}}
Before tax profits of Sri Lanka’s insurance companies surged an impressive 364.71% in the first half of 2018 in both long-term insurance and general insurance amounting to Rs. 21,656 million, according to an insurance industry performance report.
The profit before tax of Long-term Insurance Business amounted to Rs. 17,319 million, which in the first half 2017 was Rs. 738 million. The profit before tax of General Insurance Business amounted to Rs. 4,337 million, which in the first half 2017 was Rs. 3,992 million.
“Thus, profit before tax of Long-term Insurance Business and General Insurance Business has increased by 2,246.57% and 10.57%, respectively. The increase of 2,246.57% in profit before tax was mainly due to the profit recorded by an insurer from a sale of its subsidiary and the one-off surplus transfer made by two long-term insurance companies during the period. Further, a State-owned long-term insurance company reported a growth in profit before tax compared to huge loss recorded in the second quarter of 2017,” the report said.
The insurance industry was able to achieve a growth of 12.60% in terms of overall Gross Written Premium (GWP) during the first half of 2018, recording an increase of Rs. 9,593 million when compared to the same period in the year 2017.
The GWP for Long-term Insurance and General Insurance Businesses for the first half of 2018 was Rs. 85,755 million, compared to the first half of 2017, amounting to Rs. 76,162 million, posting a growth of 12.60%. The GWP of Long-term Insurance Business amounted to Rs. 37,902 million, recording a growth of 12.61%. The GWP of General Insurance Business amounted to Rs. 47,853 million, recording a growth of 12.58%.
The value of total assets of insurance companies has increased to Rs. 581,770 million as at the end of first half of 2018, when compared to Rs. 533,075 million recorded as at end of the first half of 2017, reflecting a growth of 9.13%.
The assets of Long-term Insurance Business amounted to Rs. 407,708 million, indicating a growth rate of 8.68% year-on-year. However, the growth of assets of Long-term Insurance Business has significantly dropped compared to 15.93% growth recorded during first half of 2017. The assets of General Insurance Business amounted to Rs. 174,062 million, depicting a growth rate of 10.23% at the end of the first half of 2018. Accordingly, the growth of assets of General Insurance Business has shown a significant increase compared to the same period of 2017.
