Asian Alliance Insurance Plc (AAI) has achieved healthy growth in business with net gross written premium up by 25% in the first half of this year though higher expenses and lower income from investment had led to a Rs. 172 million loss.
As per audited accounts AAI’s gross written premium (GWP) for the period ended June 30, 2011 was up 26% to Rs. 996.6 million whilst net written premium rose by 25% to Rs. 775 million. Ne earned premium improved by 21% to Rs. 763 million.
The Company’s underwriting result grew by 46% to Rs. 107 million in the first half of 2011 financial year as against Rs. 73 million a year earlier.
Other revenue mainly income from investment was down to Rs. 79 million from Rs. 288.6 million in the first half of last year. Operating and administration expenses on the other hand grew by 26% to Rs. 355 million. These combined factors had resulted in pre-tax loss of Rs. 167.7 million in 2011 first half as against a profit of Rs. 84 million in the corresponding period of last year. Net loss for the first half was Rs. 172.4 million, in comparison to a profit of Rs. 79 million a year earlier.
On core business, GWP had increased in all product segments in the first half of 2011. The GWP in non life insurance rose to Rs. 265.5 million from Rs. 211 million whilst life insurance grew to Rs. 731 million from Rs. 578 million. Net earned premium in general amounted to Rs. 159 million, up from Rs. 147.7 million in the first half of 2010, and in life business it rose to Rs. 603.7 million, up from Rs. 484 million. The respective underwriting result was Rs. 25 million in general (Rs. 3.2 million in 2010 first half) and Rs. 81.6 million in life (Rs. 70 million in 2010 first half).
In general GWP in motor rose to Rs. 130 million from Rs. 108 million a year earlier followed by Rs. 54.6 million on fire, up from Rs. 48 million last year. Marine had also grown to Rs. 19.7 million from Rs. 12.4 million. Miscellaneous segment grew to Rs. 61 million from Rs. 42 million.
Under life GWP on first year premium rose to Rs. 223 million from Rs. 171 million whilst renewal premium grew to Rs. 496 million from Rs. 397 million.
AAI’s total assets grew to Rs. 4.4 billion as at June 30, 2011 from Rs. 3.17 billion a year ealier.
Assets of life business amounted to Rs. 2.6 billion, up from Rs. 2 billion whilst non life’s figure grew from Rs. 1.08 billion to Rs. 1.8 billion. Liabilities on the general business had declined to Rs. 537 million from Rs. 575 million whilst at Company level it rose from Rs. 2.6 billion to Rs. 3.1 billion.
Total shareholders’ equity had more than doubled to Rs. 1.27 billion from Rs. 506 million.
In the financial year ended on December 31, 2010, gross written premium (GWP) amounted to Rs. 1.67 billion and net figure was Rs. 1.3 billion. After tax profit was Rs. 368 million.