T. R. Ramachandran, Aviva NDB Chairman confirmed Aviva Group’s stated strategy of prioritising investments in its largest markets where it has strength and scale and added: “At a time of changing capital regulations it is a sensible allocation of our resources, but it does not translate into an exit of all other smaller markets. AVIVA NDB is a good combination of a growth business that is also self-financing and cash generative. Our investment in Sri Lanka was at the height of the conflict, looking forward to a brighter future, and that continues to be the case as evident in our strong business performance”.
AVIVA NDB Insurance’s financial results presented at the end of 2011’s first three months showed a significant growth in consolidated group revenue amounting to LKR 3.6 billion, a 33% year on year (YoY) increase.
Total Gross Written Premium (GWP) income of LKR 2,808 million recorded a 35% YoY growth, illustrating the company’s continued strength after its transformation. Investment linked products contributed 55% to GWP of LKR 2,073 million of the Life business which grew 59% YoY. General insurance reported a LKR 735 million GWP which reflected a 5% negative growth attributed to the Company’s medical portfolio’s re-pricing.
Consolidated profit after tax for the period amounted to LKR 147.6 million with the bottom line performance increasing by LKR 288 million compared to last year’s first quarter (1Q). PAT excluded the surplus from the long-term insurance business which is determined annually after the actuarial valuation included in the full year results for the financial year ending December 31, 2011.
Commenting on the results, Ramachandran said: “We successfully pioneered investment-linked products and are now able to reap this innovative step’s benefits. This Q we launched a new Life insurance product range with the flagship product offering a pension for everyone. The new range is designed to meet long term savings, protection and health insurance needs of our customers.” Managing Director Shah Rouf added; ”AVIVA NDB wealth planners’ professionalism is evident by the increase of our topline in 2011 !Q, exactly a year after the Company experienced a major brand and distribution transformation. We are now focusing on improving our underwriting and claims management and can look forward to delivering the performance planned for 2011.”
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