Aviva NDB records Rs. 9.3 b consolidated Q3 revenue

Aviva NDB Insurance has recorded consolidated revenue of Rs. 9,317 million in the first nine months of 2012 ending on 30 September. This was a 7% drop compared to the previous corresponding period as a result of a decline in sales volumes of investment-linked Life products combined with prudent General Insurance pricing.

Composite gross written premium income for the period was Rs. 6,608 million while Life GWP amounted to Rs. 4,788 million. Conventional products contributed 60% to Life GWP recording a growth of 4% over last year.

GI GWP was Rs. 1,820 million, a negative growth of 15% compared to the same period in 2011 as the business continued to focus on improved underwriting.

Focus on quality over the last two years has resulted in an improvement in the loss ratio reported by the GI business which in turn has led to an overall improvement of the combined operating ratio.

The Company recorded an investment income of Rs. 3 billion during the period under review in comparison with Rs. 2.1 billion for the corresponding period in 2011. Increase in income was mainly contributed by fixed income securities.

The Company’s consolidated profit after tax was Rs. 266 million. This was a commendable increase of Rs. 56 million compared to the corresponding period in the previous year. The surplus from the long-term insurance business is not included as this is determined annually after the year-end actuarial valuation and will be included in the full year results ending December 2012.

The interim financial statements for Q3 of 2012 were prepared on Sri Lanka Financial Reporting Standards (SLFRS) compliant basis with Aviva NDB becoming the first insurer to do so starting with first quarter results.

Aviva NDB Insurance Managing Director Shah Rouf expressed confidence in the strategies in place for balanced growth of the business and satisfactory performance, and said: “We look forward to sustainable profitable growth with AIA, who subject to completion will become our major shareholders this year. I am confident that we will deliver satisfactory results for 2012 maintaining the momentum that has attracted Asia’s leading life insurer to invest in our Company.”

Chairman T.R. Ramachandran said: “The considerable strengths of our business will be enhanced by the pan-Asian experience of AIA, as will our continued contribution to the development of the insurance sector in Sri Lanka.”