Sri Lanka Aviva unit makes Rs80mn loss in March

May 07, 2010 (LBO) – Sri Lanka’s Aviva NDB Insurance made an 80 million rupee loss in March 2010 quarter from a year ago, as wage and sales costs rose and it faced higher claims, accounts filed at the stock exchange showed. Aviva NDB Insurance made 98.3 million rupee profit during March quarter last year.

In March quarter 2010, Aviva NDB Insurance group’s gross premium income was up 34.4 percent to 2.08 billion rupees, while re-insurance premium had dipped 4.3 percent to 290.6 million, resulting in a net written premium income of 1.8 billion rupees, up 43.4 percent.

The group made a loss of 2.68 rupees per share in the March quarter, compared with earnings of 3.28 rupees in the same period last year.

Aviva NDB Insurance, formerly known as Eagle Insurance, was taken over by Aviva Insurance of the UK, the world’s sixth largest insurance company, in January, 2010.

“The loss reported was due to the higher claims experience and the prudent increase of
the IBNR (incured but not reported) provision of the general insurance business and the brand migration expenses borne by shareholders,” Bill Lisle, chairman of Aviva NDB Insurance in a statement said.

“Group Profit before tax prior to brand migratio