Sri Lanka HNB Assurance profit up

March 13, 2009 (LBO) – Sri Lanka’s HNB Assurance said after tax profit rose 33 percent to 164.5 million rupees in 2008 from a year ago in what was a difficult period for business, helped by investment income from government bonds. Premium rates continued to fall in General Insurance, eroding margins to an unacceptable level, managing director Manjula de Silva told shareholders in the firm’s annual report for the year ended December 31, 2008.

Turnover as measured by the Gross Written Premium grew 25 percent to reach 1.8 billion rupees compared with the previous year.

Turnover from General Insurance was up 31 percent to 925 million rupees while Life Insurance grew 19 percent to reach 914 million rupees over the same period.

HNB Assurance chairman Rienzie T Wijetilleke said they were able to sustain the growth momentum established in previous years in spite of the turbulent environment in which the company had to operate especially in the last quarter of the year.

“We were able to achieve a growth in after-tax profit of 33 percent at a time when many companies experienced a dip in profits or a slowdown in profit growth,” said managing director Manjula de Silva.

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