Asian Alliance records 54 percent growth in first half

Asian Alliance Insurance PLC recorded the results for the first six months of 2012. During this period, the company surpassed Rs 1.5b in Gross Written Premiums, registering a 54 percent growth over the corresponding period of the previous year.

The Life sector contributed Rs 933m, recording a 28 percent growth and Non Life sector contributed Rs 602m, with a 127 percent growth.

During the period under review the company recorded a combined Underwriting Result of Rs 266m, with a 149 percent growth over the corresponding period of last year. The financial performance of the two core segments, Life and Non Life operations contributed to the strong growth in Underwriting Result.

Asian Alliance, a part of the diversified Softlogic Group is in the process inaugurating Health Insurance schemes in tandem with the group's healthcare sector - Asiri Hospitals.

The Company will market Non-Life insurance through the Softlogic Retail network and Softlogic Finance branch network.

The company's Net Loss before Tax of Rs (25.8)m for the first half of year 2012 was significantly below the corresponding period due to the improved performance and was reported on the basis of the new IFRS guidelines.

Whilst the equity component of the investment portfolio was affected by the performance of the Colombo Bourse, the increase/decrease in Fair Value of such investments have been adjusted under Other Comprehensive Income as per the SLFRS/LKAS guidelines.

The financial statements for the half year ended June 30, 2012 have been prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRS/LKAS) which have materially converged with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

The interim report is the company's first published under the new IFRS guidelines and the previous year's financials have been reported under SLAS with the impact analysis disclosed and adjusted to Retained Earnings.

The report also covers the key policy changes as required for first time adoption. The effect of the transition from SLAS's to SLFRS's has also been presented in the reconciliation statements and accompanying notes to the reconciliation.

RAM Ratings Lanka has re-affirmed the company's claims-paying ability of BBB- , reinforcing a stable outlook.