Aug 12, 2020 (LBO) - Ceylinco Life has reported gross income of Rs 17.1 billion for the first half of 2020, an improvement of 14.9 per cent over the corresponding period of last year, demonstrating the Company’s ability to grow volumes even in challenging conditions through a focus on its core business and on astute investment management.
Both gross written premium (GWP) and investments and other income contributed to top line growth in the six months ending 30th June 2020, increasing by 13 per cent to Rs 9.9 billion and by 17.4 per cent to Rs 7.2 billion respectively, the Company disclosed.
Ceylinco Life paid Rs 5.9 billion in net claims and benefits to policyholders in the period under review – an increase of 17.8 per cent over the first half of 2019, transferred Rs 4.4 billion to its Life Fund, and made a transfer of Rs 1.95 billion to the shareholder fund, growing the latter by 9.2 per cent to Rs 34.4 billion.
Consequently, profit before tax was recorded at Rs 3.5 billion for the six months, reflecting a decline of 6.7 per cent over the first half of 2019, while profit after tax reduced by 4.6 per cent to Rs 2.7 billion, the Company reported.
The Company’s Life Fund achieved a milestone in the second quarter of the year, surpassing Rs 100 billion to stand at Rs 101.6 billion as at 30th June 2020, and becoming the fastest life fund to reach Rs 100 billion in Sri Lanka’s life insurance sector.
“The second quarter of the year was a period of turbulence for most businesses worldwide as a result of the impacts of the COVID-19 pandemic, and profit growth was predictably affected,” Ceylinco Life Managing Director Mr Thushara Ranasinghe said. “We expect the effects of the pandemic to continue to exert pressure on the Company’s performance in the quarters ahead, but remain confident that Ceylinco Life has the inherent financial strength and stability as well as the managerial prowess to minimise the adverse impacts and provide our policyholders and shareholders the best returns possible in the conditions that prevail.”
Total assets of Ceylinco Life grew by Rs 24.6 billion or 18.5 per cent since 31st December 2019 to Rs 157.8 billion as at 30th June 2020, while the Company’s investment portfolio increased by Rs 23.4 billion or 20 per cent over the six months to reach Rs 140.3 billion at the end of the first half of the year.
Ceylinco Life ended 2019 on a characteristically strong note as well, with consolidated income of Rs 32.1 billion for the financial year, reflecting top line growth of 9.9 per cent. The Company reported gross written premium income of Rs 18.7 billion, retaining its status as the market leader for life insurance in Sri Lanka for the 16th consecutive year.
Sri Lanka’s leading life insurer for the second half of the 32 years it has been in existence, Ceylinco Life was ranked the Most Valuable Life Insurance Brand in Sri Lanka by Brand Finance this year and declared the ‘Peoples Life Insurance Service Provider of the Year’ for the 14th consecutive year at the 2020 SLIM-Nielsen Peoples Awards. The Company was ranked among the 10 ‘Most Admired Companies’ in the country by the International Chamber of Commerce, Sri Lanka (ICCSL) in 2019 and in the same year was named the ‘Best Life Insurer in Sri Lanka’ for the sixth consecutive year by World Finance, and ranked sixth overall in the Business Today ranking of the country’s top 30 companies.
Ceylinco Life has close to a million lives covered by active policies and is acknowledged as a benchmark in the local insurance industry for innovation, product research and development, customer service, professional development and corporate social responsibility.