Asian Alliance Insurance achieves solvency margin rule

Asian Alliance Insurance has performed significantly well during the first half of the year 2006, to reach a Gross Written Premium (GWP) of Rs. 585 million, a 28% growth over the last year.

The total investment of the company increased to Rs. 760 million from Rs. 565 million (as at December 2005) and earned an investment income of Rs. 27.3 million for the first half of the year, a 98% growth over last year. The significant achievements in efficiencies in our underwriting and claims management processes has resulted in a 4% improvement over the last year in terms of underwriting results.

The company has met with the required solvency margins in accordance with the solvency margin rule applicable in 2007, set by the Insurance Board of Sri Lanka.

The Life Division continues its upward trend in growth. The GWP recorded a 27% growth over the same period last year. The Operating Surplus from the Life Division grew by 63%, over the corresponding period in 2005. Once again this achievement was possible due to the efficiency achieved in the sales and underwriting processes of the company.

Despite the aggressive competition in the market, the Non Life Division achieved a healthy growth rate of 28% in GWP over the previous year. The company recorded a 30% non-motor growth in the first half, with Fire and engineering achieving a growth of 36%, whilst Marine and Motor achieved growth rates of 85% and 25%.

The company plans to embark on to the next half of the year, with improved services in underwriting, claims and sound financial management, upholding the values of professionalism. Since its inception, AAIC has steadily made its mark in the Sri Lankan insurance industry. It is backed by financially sound and leaders in their respective fields - Asia Capital Ltd., Richard Peiris and Company Ltd. and Sampath Bank Limited.

This strong support ensures that AAICL has the right expertise and reach to propel itself to greater heights in the highly competitive insurance industry in Sri Lanka.