Corporate

Aviva NDB records 61% growth

The efforts of AVIVA NDB wealth planners, combined with the strong performance of the Company’s bancassurance partners and a robust equity market has resulted in an outstanding consolidated revenue growth of 61percent amounting to Rs 10.9 billion, over the corresponding 9 months in the previous year.

The total annual revenue of the previous year has been surpassed at the end of the 3rd quarter in 2010 due to the strong topline performance of both the Life and General insurance businesses. Group revenue in the 3rd quarter 2010 was reported at Rs 4.9 billion which represents an increase of Rs 2.5 billion over the corresponding quarter in 2009.

The total Gross Written Premium income for the period amounting to Rs 7,215 million, a growth of 54percent over the corresponding 9 months in 2009.

Life insurance business alone accounted for Rs 5,082 million recording a growth of 63percent while General Insurance generated a GWP of Rs 2,133 million, a strong growth of 36percent.

Managing Director of AVIVA NDB Insurance Shah Rouf attributed the exceptional growth to the Company’s investment-linked expertise.

“The backdrop of a strong equity market has contributed to an upsurge in our business that in nine months surpassed the revenue for the whole of last year, which incidentally was the highest sales recorded in the Company’s history.

More importantly, our team of Wealth Planners has been revitalised by their new role and ability to serve both the Life and General insurance needs of our customers.

They are more efficient and effective in an IT-savvy environment that is also more customer-centric than ever before” he said.

The Group reported a loss of Rs 13 million, after taxation for the 9 months ending September 30 while reporting a profit of Rs 114 million after tax for the third quarter ending September 30.

The corresponding quarter in 2009 reported a profit after tax of Rs 74.8 million for the Group.

The marginal loss was after charging the large investment the Company has made in the brand in the wake of transforming from Eagle to AVIVA NDB.

Higher weather-related claims also contributed to this loss.

There was also a prudent increase of provision for incurred but not reported (IBNR) claims.

The financial results for the period do not include a bottom-line contribution from the Life insurance business, as this is determined at the end of the financial period, after the actuarial valuation of the life fund is determined.

The newly appointed Chairman of AVIVA NDB, T.R. Ramachandran was confident of the Company’s ability to achieve its ambitious goals for the year, based on the positive results of the third quarter and growth in scale.

“Prudent strategies are in place for the growth of our business, with an emphasis on quality, particularly in the area of general insurance underwriting and claims management as we prepare for 2011” he said.

Maturata Plantations turns loss into Rs. 171m operational profit

By Jihan Riza

Maturata Plantations Limited has made a significant improvement and is moving more towards success and profits this year.

The company has recorded an operational profit of Rs. 171 million to end September 2010 against a loss of Rs. 2 million for the same period last year. Yields on tea plantations have improved by 17 percent in comparison with last year.

In rubber the company has achieved the highest yields amongst regional plantation companies and is striving forward by undertaking large scale replanting in both tea and rubber.

In terms of fuelwood, the goal of the company is to plant one million trees within the next 3 years and has made steady progress by planting three hundred and twenty thousand eucalyptus trees, with regards to human resources development, the company values its workers who are the force behind success.

The company closely monitors its workers by conducting routine health check ups, and other welfare programs to prevent alcohol and drug addiction.

The quality of work life of all employees are closely looked into, to ensure steady growth.

Softlogic enters financial services

The high-riding Softlogic Group has renamed the flagship financial arm of the Capital Reach Group whose controlling stakes it acquired, as Softlogic Finance PLC.

The acquisition heralds Softlogic’s much-anticipated entry into the competitive financial industry.

Chairman, Softlogic Ashok Pathirage believes that his conglomerate is ready to serve up a new culture in finance.

We have received shareholder approval to rename the decade-old finance company which we acquired, allowing us to stamp our entry into finance.

We are well poised to deliver the next success story on the cutting-edge of finance, Pathirage said.

The Softlogic Group which started as an IT company has catapulted to fame as one of Sri Lanka’s most diversified and fast-growing conglomerates.

The involvement of this dynamic retail group brings a powerful dimension to the company that will work in tandem with the parent group ramping up its presence in the consumer lifestyle arena.

Softlogic’s association with world-renowned brands like Nokia, Dell, Panasonic, Samsung, Xerox, Levi’s, Nike and Daihatsu is expected to help Softlogic Finance leverage group strengths as it seeks to introduce its own brand of consumer-friendly financial services.

Softlogic has also been credited with infusing new life to the local healthcare industry having management of the Asiri hospitals and the Central hospital.