Ceylinco Life premium income tops Rs 10 b

Record premium income of Rs 10.83 billion for the 12 months ending December 31, 2012 has enabled Ceylinco Life to end the year with a market share of 29 percent, a media release from the company stated.

The company achieved a growth of 10.1 percent in premium income and improved investment and other income by a solid 22.05 percent during the year to post a total income of Rs 15.65 billion.

Gross Written Premium income grew by Rs 996 million over 2011, while Investments and Other income increased by Rs 872 million, the release stated.

Ceylinco Life sold 153,938 new life policies during this period at a monthly average of 12,828, achieving an overall improvement of 7.5 percent in new business.

The size of the company's investment portfolio increased by Rs 3.8 billion to Rs 44.2 billion as at December 31, 2012, with investments pertaining to policyholders reaching Rs 41.7 billion, reflecting a growth of 8.9 percent.

Ceylinco Life made a net transfer of Rs 6.765 billion to its Life Fund for the 12 months, resulting in the Life Fund growing to Rs 45.11 billion at the end of the year.

Ceylinco Life, Managing Director and CEO R. Renganathan said, "Our success did not come easy. Competition was intense, as it should be, and the challenges were numerous. Market conditions were not ideal, and the ever increasing impact of the rising cost of basic needs on disposable incomes continued to affect the industry. Yet, Ceylinco Life prospered and grew by focussing on fundamentals."

He said prudent management of the company's funds was also a key to operational success. At the end of the year reviewed, Ceylinco Life's investment portfolio comprised Government Securities (47 percent); Licensed Private Banks (18 percent); State Banks (16 percent); Real Estate (10 percent); Corporate Debt (5 percent) and Others (4 percent).

Renganathan disclosed that assets of Ceylinco Life grew by Rs 4.2 billion or 8.6 percent to Rs 52.89 billion at December 31, 2012.

A highlight of the year's performance was the maintenance of Ceylinco Life's solvency margin at 10 times the legal requirement. A computation of the excess of assets over statutory liabilities, the solvency margin is an important indicator of an insurance company's ability to meet obligations arising from its insurance contracts at any time.