Asian Alliance records healthy profit in 1H, 2007

Asian Alliance Insurance performed significantly well during the first half of the year 2007, to reach a Gross Written Premium (GWP) of Rs. 634 Mn., a 8% growth over the last year. The total investment of the Company increased to Rs. 1,134 Mn. from Rs. 925 Mn. (as at December 2006) and earned Rs. 58.9 Mn. for the first half of the year, a 115% growth over last year, a spokesman for the company said.

The efficiencies in the underwriting and claims management processes have resulted in a 8% improvement over the last year in terms of underwriting results.

Despite inflationary pressure during the period under review, with an increase in high investment yield the Company recorded a Profit before Tax of Rs. 1.5 Mn. as against the loss of Rs. 8.2 Mn. recorded last year during the correspoding period.

The Company has met 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 24% growth over the corresponding period last year.

The Operating Surplus from the Life Division grew by 34%, over the corresponding period in 2006. This achievement was possible due to the efficiencies achieved in the Sales and Underwriting processes of the Company, he said.

Despite the aggressive competition in the market, the Non Life Division achieved a healthy growth rate of 28% in underwriting result compared to the previous year.

This is consistent with the Company's plans to focus on the achievement of a healthy bottom line in terms of underwriting results.