The insurance industry recorded a growth of 13.87%, in terms of Gross Written Premium (GWP), during the first half of year 2017 when compared to the same period in the year 2016, the Insurance Regulatory Commission of Sri Lanka said in a statement issued yesterday.
This growth is relatively lower than the growth experienced in first half of 2016, i.e. 17.01%.
The GWP for Long Term Insurance and General Insurance Businesses for the six (06) months up to June 30, 2017 was Rs. 76,162 million compared to the first six months of 2016 amounting to Rs. 66,886 million. The GWP of Long Term Insurance Business amounted to Rs. 33,657 million (First Half 2016: Rs. 30,306 million) while the GWP of General Insurance Business amounted to Rs. 42,505 million (First Half 2016: Rs. 36,580 million) during the first half of 2017. Thus, Long Term Insurance Business and General Insurance Business witnessed a GWP growth of 11.06% and 16.20% respectively when compared to the corresponding period of year 2016.Total Assets of insurance companies have increased to Rs. 533,075 million as at 30th June 2017 when compared to Rs. 478,427 million recorded as at 30th June 2016, reflecting a growth of 11.42%.
At the end of first six months of 2017, investment in Government Debt Securities amounted to Rs. 175,627 million representing 46.81% (First Half 2016: Rs. 158,239; 48.90%) of the total assets of Long Term Insurance Business, while such investment compared to the total assets of General Insurance Business amounted to Rs. 30,933 million representing 19.59% (First Half 2016: Rs. 31,986; 20.66%).
The claims incurred by insurance companies in both Long Term Insurance Business and General Insurance Business was Rs. 32,249 million (First Half 2016: Rs. 29,171 million) showing an increase in total claims amount by 10.55% year-on-year. The Long Term Insurance claims, including maturity and death benefits, amounted to Rs. 11,991 million (First Half 2016: Rs. 11,068 million).
The claims incurred in General Insurance Business, including Motor, Fire, Marine and other categories, amounted to Rs. 20,258 million (1st Half 2016: Rs. 18,103 million). Hence, during the first half 2017, there is an increase in claims incurred by 8.34% and 11.91% for Long Term Insurance and General Insurance Businesses respectively, when compared to the corresponding period of year 2016.
The profit (before tax) of insurance companies in both Long Term Insurance Business and General Insurance Business has decreased to Rs. 4,660 million (First Half 2016: Rs. 5,259 million) showing a negative growth rate of 11.38%.
Out oftwenty seven (27) Insurance Companies (Insurers) registered with the Board as at June 30, 2017, twelve (12) are engaged in Long Term (Life) Insurance Business, twelve (12) companies are engaged in General Insurance Business and three (03) are composite companies (dealing in both Long Term and General Insurance Businesses).
Sixty (60) insurance brokering companies, registered with the Board as at June 30, 2017, mainly concentrate in General Insurance Business.
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