HNB Assurance PLC (HNBA) and its fully owned subsidiary HNB General Insurance Limited (HNBGI) posted a Profit After Tax (PAT) of Rs 74 million for the first quarter of 2017, reflecting a 121% growth compared to Rs 33 millionrecorded during the corresponding period last year.
The Group achieved a growth of 18% during Q1 of 2017, posting a Gross Written Premium (GWP) of Rs 1.9 billion against the GWP of Rs 1.6 billion recorded during the same of 2016.
The Life Insurance Company posted a GWP of Rs 988 million and the General Insurance Company posted a GWP of Rs 929 million during the period under review.
The Group was able to deliver a steady performance as a result of the strategic initiatives implemented in new business acquisition as well as streamlining its core business operations.
The key contributors to the reported growth were identified as the growth in both individual and corporate policies of the life insurance company as well as the contribution of the motor segment of the general insurance company. On a comparable basis with the results of the corresponding period of 2016, the post-tax profit of the Life Insurance business showcased a growth of 66%. The businesses were successful in capturing new market segments and seizing profitable growth opportunities, despite the challenging market and economic conditions. The recorded growth was in line with the Group’s expectations on the phase of maximizing its profits as well as in delivering value to its stakeholders.
Sharing thoughts on the financial performance of the Group, Chairperson of HNBA and HNBGI Rose Cooray said, “We are indeed pleased on the results the Group was able to yield at the end of the first quarter of this year, amid the stiff competition and other macroeconomic factors. The Group surpassed the Rs 15 billion milestone of total assets during the first quarter of 2017 and investments in financial instruments reached a value of Rs 12 billion. During the same period the Life Insurance Fund grew by 7% while the General Insurance Fund grew by 5% reaching values of Rs 9 billion and Rs 2 billion respectively. These results reflect the favorable direction the company is headed and the Board, the management and staff of both HNBA and HNBGI are committed to improve the financial performance of the Group as well as to strengthen the competitive positioning of both HNBA and HNBGI.”
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