Softlogic Life announced that despite all the difficulties associated with a thoroughly disrupted COVID year 2020, the Company grew revenues to record Gross Written Premium (GWP) of Rs. 15.6 billion, an increase of 25% making it the fastest Company to that mark.
The strong growth follows a similar 25% growth that was achieved by the Company in the previous year when the economy was badly impacted by the Easter attacks in 2019. The Company is proud to note its contribution to increasing insurance penetration in the country with 265,617 policies issued during the year 2020, 33% of total industry that cover all segments of society. One in every three policies taken up in 2020 was a Softlogic Life policy with the Company insuring over 1.5 million Sri Lankan lives.
The Company was ranked third largest in the Life Insurance market, rising one more notch during the year and has overtaken much older players to establish strong growth momentum with market share increasing to 15.2%. Profit before tax for the financial year ended 31st December 2020 was Rs. 2.1 billion and Profit after tax was Rs 1.5 billion. Total assets of the Company were Rs. 33.2 billion indicating a growth of 61%. The Company paid claims totalling Rs. 3.5 billion during the year in accordance with its unique claims settlement philosophy with 87% of claims settled in one single day.
Commenting on the financial performance of the Company, Ashok Pathirage, Chairman of Softlogic Life Insurance PLC stated, “We continue to remain fully confident of Sri Lanka’s growth prospects and see the low penetration in the life insurance industry as a great opportunity for future growth. We have also demonstrated our commitment to increasing insurance penetration in the country where one in every three life insurance policies sold in the market was from Softlogic Life, which shows that we cover almost the entirety of customer segments.”
Softlogic Life undertook key measures in 2020 towards sustaining its robust growth path by successfully raising USD 30 million (Rs. 5.7 billion) during the year via a FinRe transaction with global reinsurance leader MunicRe and Subordinated Debt transaction with FinnFund and NorFund that will provide capital to further develop the business objectives of the Company. The debt investment marked one of NorFund and Finnfund’s first investments in Sri Lanka. It is also important to note that the capital raising was concluded amidst an on-going global pandemic that demonstrates the bright prospects for the country’s Life insurance sector.
“It is really encouraging to see the results that have been achieved during a very difficult year that bears testimony to the extremely talented and hugely motivated team that we have at Softlogic Life. Each area of the Company has delivered in an exemplary manner to enable the overall outcome which places us in a great position going forward” said Iftikar Ahamed, Managing Director of Softlogic Life Insurance PLC.
Softlogic Life Insurance PLC is a subsidiary of Softlogic Capital PLC and is part of the Softlogic Group, which is recognised as one of Sri Lanka’s most diversified and fastest-growing conglomerates with interests in Healthcare, Retail, ICT, Leisure, Automobiles and Financial Services. Significant stakeholders in the company include global investors Leapfrog Investments.