Ceylinco Insurance records Rs.1.1 b PAT

Ceylinco Insurance recorded a profit after tax of Rs 1.1 b for the year ended December 31,2011. During the year under review, Ceylinco Insurance PLC made an operational profit of Rs. 1.3 b. The after tax profit of the group stood at Rs.1,393 m, a growth of 39 percent year-on-year.

In 2011, Ceylinco Insurance PLC recorded a premium income of Rs.19.8 b, which amounted to a growth of 10.3 percent, with the General Division contributing Rs.10 b and the Life Division accounting for the remaining Rs.9.8 b.

Managing Director and CEO of Ceylinco InsuranceGeneral, Ajith Gunawardena said: "What we have achieved in 2011 was in line with our expectations.

We have succeeded by adhering to sound fundamentals and we are committed to managing our business with great discipline and prudence. Our main focus, as always, remains the central figure that drives our business: the customer, and accordingly, during the year under review, Rs.4.9 b was paid by Ceylinco Insurance - General, as claims."

Commenting on the Life Division's performance during 2011, Managing Director and CEO of Ceylinco Life, R. Renganathan said: "Our ability to outperform the industry growth is evidence of the trust and confidence that Ceylinco Life has built up over the years.

This is an invaluable asset that we intend to nurture and build on in the years ahead.

It is noteworthy that Ceylinco Life planned and executed several spectacular promotions in the year reviewed, and paid Rs 1.8 b in bonuses and cash bonuses, far exceeding policyholder expectations."

Meanwhile, the total investments of the company, including both the Life and General Divisions, exceeded Rs 47 billion, whilst assets grew by 24.3 percent and stood at Rs.61.3 b by the end of December 2011.

During the year under review the General Division sold over 650,308 new policies, bringing the total policies in force to 1,284,621. Net transfers to the Life Fund over the year was Rs. 6.3 b, increasing the Life Fund to Rs.38.2 b, recording a growth of 19.8 percent year-on-year.

The Life Division meanwhile, sold over 143,259 new policies during the year, while Life solvency stood at over eight times the required solvency ratio. The total claim benefits disbursed by the Life Division in 2011 amounted to Rs.2,946 m.