Ceylinco's Life Fund grows to Rs 41.7b in 1H

Ceylinco Life made a net transfer of Rs 3.574b to its Life Fund in the first six months of 2012, taking the value of the Fund to Rs 41.778b as at June 30, 2012, a growth of 13.76 percent over the value transferred in the corresponding six months of 2011, the company said.

The growth of the Life Fund is the result of steady business growth in the first half of the current year, with total income improving by 9.18 percent to Rs 6.974b, a media release from Ceylinco Life said.

Gross Written Premium Income for the six months reviewed recorded a growth of 7.22 percent to Rs 4.9b, while Investment and other income improved by 14.5 percent to Rs 1.975b.

"Our first half performance is noteworthy when viewed against the challenging environment of escalating costs of living and shrinking disposable incomes," said Managing Director and CEO of Ceylinco Life, R. Renganathan. "These figures are a tribute to our hard-working sales team and the solid foundation of market leadership the company has built over the past eight years." Total assets of Ceylinco Life grew by 2.67 percent since December 31, 2011 to reach Rs 49.536b. The company paid Rs 1.52b in gross customer benefits in the six months to June 30, 2012, recording an increase of 3.95 percent.

In the period reviewed, the company investment portfolio comprised Government Securities (40 percent); Licensed Private Banks (22 percent); State Banks (17 percent); Real Estate (11 percent); Corporate Debt (5 per cent) and others (5 percent).

Investments pertaining to the Life Fund are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No 43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL).

For the year ending December 31, 2011 Ceylinco Life reported a total income of Rs 13.698b and Gross Written Premium Income of Rs 9.816b.

"Ceylinco Life has more than 850,000 lives covered by active policies and has been the market leader in Sri Lanka's long term insurance sector for the past eight years. The company is acknowledged as the benchmark for innovation in the local insurance industry for its work in product research and development, customer service and professional development," a spokesman for the company said.