HNB Assurance maintains growth momentum

HNB Assurance PLC (HNBA) maintained its growth momentum in the first quarter of 2015, despite challenging market conditions. The company, which recorded above market growth in 2014, achieved a 20% growth in group turnover recording Rs. 1.37 billion as consolidated premia, up from Rs. 1.15 billion achieved during the corresponding period of last year.

Premium income of Rs. 626 million was achieved by HNB Assurance PLC, the parent company conducting the life Insurance business. Life insurance premiums recorded a 10% growth while General Insurance which is carried out by the fully owned subsidiary, HNB General Insurance Ltd, recorded a 29% growth by generating a premium income of Rs. 743 million.

The growth seen in the Life segment of the business was mainly through Endowment policies, which was supported by MRP and other single premium investment type products.

General Insurance growth was mainly influenced by a strong growth in motor insurance,generated through a variety of network partners and direct agents.

The consolidated Profit after Tax for the first quarter of 2015 was Rs. 15.5 million which is lower than Rs. 53.9 million recorded during the corresponding period of last year.

This was mainly due to an increase in claims in the General Insurance business and the current investment climate also affected both lines of business.

Acting CEO Niranjan Manickam said, “The strong growth seen in both lines of business is promising as our focused efforts to develop identified areas are beginning to meet expectations. We believe that both companies are now well positioned to maximise the potential market opportunities and expand its presence, while creating sustainable value to all stakeholders.”