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| Sunday, 12 March 2006 |
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| News Business Features Editorial
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Asian Alliance Insurance posts Rs. 26 m net profit Asian Alliance Insurance Co Ltd., (AAICL) has recorded its best ever performance during the financial year ended December 31, 2005. AAICL posted a net profit attributable to ordinary shareholders of Rs. 26 million. This substantial increase in profit was powered by healthy top line growth with Gross Written Premium (GWP) amounting to Rs. 932 million, up by 27%. The company also managed its expenses well, another reason for improved profitability. Despite the business expansion program and the inflation rate of 11% in 2005 AAICL expenses rose by only 15%, which reflect the efficient cost management practices. "Healthy growth in business, process improvements and efficiencies helped the company to record an exceptional performance in 2005," AAICL Chief Executive Officer Ramal Jasinghe said. Profit before tax at Rs. 28 million, is 32 times higher than 2004. AAICL's net assets per share increased by 36% over the previous year. Considering the fact that management of funds is a critical aspect of an insurance company, AAICL's investments in 2005 grew by 74% to Rs. 564 million. "We over performed the targeted benchmark yields set by the Investment Committee," the CEO said. Commenting on the overall business growth, the CEO said in 2005, Life Division once again recorded a commendable growth of 37% to achieve a Gross Written Premium of Rs. 578 million. The Operating Surplus from Life Division was Rs. 195 million compared with Rs. 77 million in 2004, reflecting a 153% growth. "This significant improvement in Operating Surplus was possible due to the high retention rate of Life insurance policies with the average policy value of Rs.33,000, the highest in the industry, and the reduction in expense ratio," the CEO said. |
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