Ceylinco Life records 35 percent market share

Ceylinco Life's claims of continuing market leadership in 2008 and the growth of its share of the market have been independently validated by the most authoritative source, the Annual Report of the Insurance Board of Sri Lanka (IBSL).

In the recently released document, the sector regulator has confirmed that total premium income in the long term (life) insurance segment grew 13.9 per cent to Rs. 23.613 billion in the 12 months ending December 31, 2008, and that Ceylinco Life's premium income, at Rs. 8.257 billion, represents a 34.97 per cent share of the market.

Figures in the report also confirm that Ceylinco Life recorded a growth of 20.6 per cent in the year reviewed, a full 6.7 percentage points higher than the industry average, and that Ceylinco Life was the only company in the life insurance segment to significantly increase its market share, by 1.94 percentage points.

In contrast, the second largest life insurer in the country witnessed a decline of 2.56 per cent in its market share, which fell to 19.05 per cent at the end of 2008, giving Ceylinco Life a lead of nearly 16 percentage points in market share over its closest competitor. All other life insurance businesses either maintained their market share of posted marginal growth in the review period.

Commenting on this important substantiation of performance in the insurance sector, Ceylinco Life Deputy Chairman R. Renganathan said: "Besides its role as a regulator, the IBSL provides a great service to the investing public in Sri Lanka by providing valuable information on the performance of all players in the sector. This means that the public is able to verify the accuracy of numerous claims and statements that emanate from companies."

He said Ceylinco Life's achievement of retaining its market leadership for the fifth consecutive year and the fact that the company has increased its lead over the competition, are clear indicators of the degree of trust it continues to enjoy among policyholders and potential customers alike, even in a challenging environment.

Among other noteworthy indicators reported in the 2008 Annual Report of the IBSL, was that all life insurers together had sold 555,886 new life policies in the year reviewed, achieving a growth of 5.4 percent. Of these new policies sold, Ceylinco Life, in its own Annual Report for 2008 discloses that it had sold 188,483 new policies, accounting for 33.9 per cent of new business in the life insurance segment in 2008.

The IBSL also reports that penetration of life insurance had grown from 8.8 per cent at the end of 2006 to 10.4 per cent at the end of 2008. "Ceylinco Life can claim to have contributed significantly to increasing penetration because it is the only company to substantially increase its market share, and to invest heavily in programs to increase the size of the market by improving awareness of the need for life insurance," Renganathan added.

Ceylinco Life has more than 750,000 lives covered by active policies. The company's Life Fund stood at Rs. 22.57 billion as of April 30, 2009, and its solvency margin at the end of the concluded financial year was five times the requirement specified by statute.