HNB Assurance PAT grows 43 percent

HNB Assurance PLC reported a 43 percent growth in its Profit After Tax ( PAT) according to the interim financial statements for the year ended December 31, 2012 released to the Colombo Stock Exchange.

The company's Profit After Tax recorded Rs. 351 million while its Profit Before Tax also grew by 45 percent to reach Rs. 394 million. Turnover recorded a modest growth of 8 percent fuelled by the Gross Written Premium (GWP) from Life Insurance which grew at an impressive rate of 16 percent.

The growth in GWP from General Insurance stood at one percent due to the company's decision to defend its pricing structure at an economically viable level amidst heavy price competition. This strategy enabled the company to record a improvement in its underwriting profitability from the General Insurance business. As a result, the profit after tax from General Insurance business grew by 151 percent and accounted for a share of 53 percent of the total profit.

The profit from Life Insurance recognised as a transfer of surplus from the Life Fund declined marginally by 4 percent and accounted for a share of 47 percent.

This is the first time since 2006 that General Insurance has contributed to a larger share of the company's profit after tax and reverses the trend seen in recent years. The Company's Earnings per Share (EPS) grew to Rs. 7.02 recording a 37 percent growth while its Return on Equity (ROE) stood at 19 percent.