Sri Lanka’s largest life insurer Ceylinco Life has posted an income of Rs. 6.391 billion for the six months ending 30 June 2011, with healthy growth in Gross Written Premiums and Investment and Other income.
Premium Income grew 18.5 per cent over the first half of 2010 to Rs. 4.663 billion, an increase of Rs. 730 million, while Investment and Other income improved by 8.4 per cent to Rs. 1.728 billion, the company reported.
A net transfer of Rs. 3.142 billion to the Life Fund resulted in the Life Fund growing by nearly 10 per cent over the six months, from Rs. 31.8 billion at 31 December 2010 to Rs. 35 billion at the end of the review period. The transfer to the Life Fund for the six months was 15 per cent more than the Rs. 2.728 billion transferred in the corresponding period of last year.
The value of Ceylinco Life’s investments appreciated by Rs. 1.97 billion or 6.7 per cent over the six months to Rs. 31.346 billion as at 30 June 2011, while total assets exceeded Rs. 39.8 billion at the end of the first half.
“These figures speak for themselves,” Ceylinco Life’s Managing Director and CEO R. Renganathan commented. “Besides confirming that Ceylinco Life continues to be the market leader in the long term insurance segment, they also underline the financial stability of the company and the success of its investment strategy.”
In the period reviewed, the company increased its investments in Government Securities, swelling this component to 45 per cent of the investment portfolio of the Life Fund. The other components of the Life Fund’s investment portfolio at the end of the first half of 2011 comprised of Licensed Private Banks (15 per cent); State Banks (12 per cent); Real Estate (16 per cent); Corporate Debt (7 per cent) and Others (5 per cent). Investments pertaining to the Life Fund are made in conformity with the investment guidelines stipulated under the regulation of the Insurance Industry Act No. 43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL).
The value of claims paid out in the first six months of the year totalled Rs. 231 million and reflected an increase of 6.3 per cent. About 86 per cent or Rs. 198 million of the claims paid out in this period were in respect of death claims. Hospital Cash Benefits (HCB), paid out in the six months reviewed, increased by 24 per cent to Rs. 31 million.
Independently rated as one of Sri Lanka’s most valuable brands, Ceylinco Insurance was adjudged the ‘People’s Brand of the Year’ in the insurance category in March 2011 for the 5th consecutive year. In July this year the company received the CMO Asia Award for ‘Best Corporate Social Responsibility Practices’ while in 2010, the company received the top award for Social Marketing at the Global Awards for Brand Excellence presented by the World Brand Congress in Mumbai.