State Insurance giant Sri Lanka Insurance corporation reported a billion rupee profit from on the back of a booming stock market.rn
rnThe company suffered a marginal Rs. 2 mn on its core general insurance business.
rnrnBut the profits came from a massive write back of provisions for stock market investments.
rnrnHigh returns on government debt, rise in value of investments and the sale of a hotel property for over Rs. 300 mn also contributed to the one point one billion rupee profit.
rnInsurance corporation was able to reverse provisions to the tune of nearly Rs. 700 mn rupees in its portfolio of investments.
rnHowever Reinsurance costs went up by one third to just over a billion rupees on a marginal 5 percent increase of written premiums.
rnReinsurance cost increase came on the back of the Katunayake airport attack and the incidents of 9/11.
rnSri Lanka Insurance Corporation is to be sold by the end of the year.(LBR)rn