Allianz Lanka records Rs. 249 m PBT
Allianz Lanka, achieved one of the highest growths in the Sri Lanka
insurance industry in Life and in Non Life business last year.
In the Non Life company, the Gross Written Premium (GWP) grew by 38%,
from Rs.1.5 billion to Rs. 2.1 billion. The company also achieved
operating profits of Rs 249 million, despite heavy investment on
recruitment and expansion and made underwriting profits of Rs 90
The main strategic focus was on developing retail business. The
company has a large portfolio of corporate business. Therefore, it
changed towards personnel retail business in 2013 which has paid
The company's business composition in Non Life shifted this year,
with Motor, non Motor business mix shifting to 24% and 76%. The heavy
expansion and consequent infrastructure development costs reduced the
return on equity from 29% to 22%.
The company's solvency margin stood at 2.3 times above the regulatory
minimum. Financial stability was also confirmed with the growth in net
assets base by 12% from Rs. 780 million to Rs. 875 million.
In the Life company, the GWP grew by 56% from Rs. 532 million to Rs.
829 million and the first year premium by 64%. Investments grew
substantially by 73%.
The company reduced net loss by a further 32%. The solvency margin
was 5.3 times higher than the regulatory minimum.
As it takes a much longer time to turnaround the Life company to
profitability, the company is well on track towards achieving this goal.
The success in the investment strategy enabled the company to declare
a dividend of 8% to policyholders. This year, Allianz Life insurance
added to its basket of Life products by introducing Unit Link, a policy
that enables policyholders to decide on their investment based on their
risk appetite, and grow their protection and investment by switching
among designated funds.
"The year was one of growth and expansion. We opened 18 branches
mainly in Sabaragamuwa, Uva and Western provinces. Our strong growth,
despite having no captive business, confirms the success of our
strategies and initiatives to grow the business in Sri Lanka," said
Allianz Lanka, Chief Executive Officer, Surekha Alles.
"I am also pleased with the progress made by our branches, especially
the contribution of the North and the East," she said.
Allianz Lanka will focus on sustainable growth and expansion in the
suburbs and will further invest in IT infrastructure development.
Digitalisation will play a key role in reaching out to customers by
improving convenience and efficiency.