August 13, 2007 (LBO) – HNB Assurance net profit after tax rose 17 percent to 10.9 million rupees for the second quarter ended June 2007 with revenue from motor insurance growing strongly. Gross written premium revenue for the period was up 32 percent to 322 million rupees, according to interim results.
In the six months ended June 30, profit after tax grew 11 percent to 23.8 million rupees and turnover grew 28 percent to 646 million rupees, a company statement said.
Profits related to general insurance business since profits from the life insurance business are recognised only after the year-end actuarial valuation is completed, it said.
“These results have been achieved in the midst of an increasingly competitive market environment which exerts pressure on prudent underwriting and claims management practices,” HNB Assurance managing director Manjula de Silva was quoted as saying.
The company said it generated a turnover of 277 million rupees through the branch network of its parent, Hatton National Bank, accounting for 43 percent of total turnover.
Its expanding agency force contributed 262 million or 41 percent to turnover while broker and direct channels co