Sri Lanka Aviva returns to profit in June

Aug 09, 2011 (LBO) – Sri Lanka’s Aviva NDB Insurance earned profits of 34 million rupees in the June 2011 quarter returning from a loss of 46 million rupees a year earlier, with revenues growing from unit linked products, interim accounts show. The profits came despite lower investment income.

Gross written premium from life and general businesses rose 42 percent to 3.0 billion rupees, helped by sales of unit linked products, accounts filed with the Colombo Stock Exchange shows.

The firm reported investment income of 385 million rupees for the quarter, down from 1.2 billion rupees a year earlier.

Profits from the life business come only at the end of the year.

In the half year to June gross written premium rose 38 percent to 5.8 billion rupees and net profits rose to 181 million rupees against a loss of 127 million rupees a year earlier.

Growth was strongest in the unit linked policies of life, which grew almost three-fold to a GWP of 2,743 million rupees.

Gross written premium general business fell 2 percent to 1,457 million rupees in the half year to June.

Investment income for the half year was down to 1.3 billion rupees from 2.2 billion a year earlier.

The firm reported earnings per share of 6.