AVIVA NDB records Rs 9.3 b

AVIVA NDB Insurance recorded consolidated revenue of Rs 9,317 m in the first nine months of 2012 ending on September 30. This was a seven percent drop compared to the corresponding period of the previous year as a result of a decline in sales volumes of investment linked Life products combined with prudent General Insurance (GI) pricing.

Composite Gross Written Premium (GWP) income for the period was Rs 6,608 m while Life GWP amounted to Rs 4,788 m. Conventional products contributed 60 percent to Life GWP recording a growth of four percent over last year. GI GWP was Rs 1,820 m, a negative growth of 15 percent compared to the same period in 2011 as the business continued to focus on improved underwriting.

The Company recorded an investment income of Rs 3 b during the period under review in comparison with Rs 2.1 b for the corresponding period in 2011. Increase in income was mainly from fixed income securities.

The Company's consolidated profit after tax was Rs 266 m. This was a commendable increase of Rs 56 m compared to the corresponding period in the previous year.

Managing Director of AVIVA NDB Insurance, Shah Rouf expressed confidence in the strategies in place for balanced growth of the business and satisfactory performance and said, "We look forward to sustainable profitable growth with AIA, who subject to completion will become our major shareholders this year."

Chairman of AVIVA NDB, T.R. Ramachandran said, "The considerable strengths of our business will be enhanced by the pan-Asian experience of AIA, as will our continued contribution to the development of the insurance sector in Sri Lanka."