Apr 27, 2009 (LBO) – Sri Lanka’s Asian Alliance Insurance Company said 2008 profits rose 20 percent to 135.4 million rupees due to higher profitability in life insurance business despite the non-life portfolio losing money. Premium income from motor insurance had increased 55 percent, marine insurance 26 percent and miscellaneous insurance 11 percent. However premium income from fire insurance declined by 21.00 percent, due to lower renewals, higher competition and shelving of loss making policies.
Investment income, mainly from the government securities market, increased 50 percent to 229.7 million rupees.
Non-life insurance claims had increased almost 21.00 percent to 183.7 million rupees, while life insurance, medical insurance and death benefit payouts had increased 25.7 percent to 48.9 million.
Operating and administrative expenses had gone up 37.00 percent to 474.1 million rupees.
By end-2008, Asian Alliances investments increased 22.6 percent to 1.78 billion rupees.
Investments in government securities had increased by 10.8 percent to 1.78 billion rupees, while investments in commercial papers had galloped by 573.9 percent to 168.4 million.
The company’s life fund had increased by