Sri Lanka insurance firm makes loss as costs rise

Aug 23, 2009 (LBO) – Sri Lanka’s Asian Alliance Insurance Company said it made a 48-million rupee loss in the first half of 2009 as higher claims and operating and re-insurance costs erased gains from investment income.

Asian Alliance said in a stock exchange filling gross written premiums for the first half 2009 went up seven percent to 765.8 million rupees from the corresponding period of 2008.

Net premium income was up three percent to 532 million rupees while investment income was up 57 percent to almost 195 million rupees during the period.

Asian Alliance’s investments mostly in government securities were up 27.3 percent to 2.03 billion rupees.

Insurance claims were up 62 percent to 171 million rupees while operating and administrative costs were up 34 percent to 283.5 million rupees.

Provisions for life insurance business were up 27.7 percent to 1.45 billion rupees, while general insurance provisions were up 68.1 percent to 400.6 million rupees, its financial statements showed.

Asian Alliance Insurance, a unit of investment house Asia Capital, made a 135-million rupee profit in the 2008 financial year.