Robust growth for HNB Assurance in 1H, 2013

HNB Assurance PLC recorded robust growth in profits during the first half of FY 2013, with Profit Before Tax (PBT) expanding by 16% and Profit After Tax (PAT) escalating by an impressive 23%, as per the latest interim results released to the Colombo Stock Exchange. These results are impressive not only because of the strong growth rates, but also because this marks the first instance the company surpassed the Rs. 100 million mark in post-tax profits during the first half of a financial year.

HNB Assurance, Managing Director, Manjula de Silva

Accordingly, the PAT of the company stood at Rs. 104.8 million for the period, while PBT also increased to Rs. 127.3 million. The strong profit growth signals the effectiveness of the company's business practices and the success of the policies adopted to remain a resolute player in the industry despite challenging market conditions.

A key contribution towards profits was also received through investment income, which recorded remarkable growth over the period. With regard to Life Insurance, the half-year profits recorded by the company exclude any surplus from its Life Insurance business, as Life Insurance surplus transfers are only conducted at the end of the financial year, subsequent to the valuation of the Life Fund by a consultant actuary.

The company strengthened its topline over the first half of FY 2012, where the combined turnover, expressed as Gross Written Premium (GWP), of Life and Non-Life Insurance businesses escalated by 15% over the corresponding period of the previous financial year.

This achievement was driven by an impressive 29% growth in Life Insurance GWP while Non-Life Insurance GWP also contributed with a modest growth of 5%. Accordingly, the combined GWP achievement for the period stood at Rs. 1,818.6 million, with a contribution of Rs. 892.2 million from the Life Insurance business and Rs. 926.4 from the Non-Life Insurance business.

HNB Assurance bears a national long-term rating and an insurer financial strength rating of 'A (lka)' with a stable outlook, as affirmed by Fitch Ratings Lanka Ltd in 2013.