Ceylinco Life’s 1Q net profit up 58% to Rs 673 million

Ceylinco Life has accelerated into FY 2017 posting robust income growth and exceptional profit growth for the three months ending 31st March 2017.

Sri Lanka’s life insurance leader reports that profit before tax improved by a noteworthy 51 per cent over Q1 2016 to Rs 822.73 million. Profit after tax for the three months, at Rs 673.34 million, reflected even higher growth of 57.8 per cent despite a 26 per cent increase in income tax for the period.

Gross written premium income was up 7.26 per cent to Rs 3.56 billion, the company said, while investment and other income grew by a remarkable 21.39 per cent to Rs 2.31 billion.

Ceylinco Life’s investment portfolio reached Rs 85.98 billion as at 31st March 2017, representing an increase of Rs 5.23 billion or 6.48 per cent since 31st December 2016 and Rs 12.58 billion or 17.14% per cent over the preceding 12 months.

The company’s Life Fund stood at Rs 79.89 billion at the end of the quarter reviewed, a growth of Rs 1.97 billion or 2.53 per cent over three months.

“The figures for the first quarter are impressive, especially in the context of the prevailing volatility and uncertainty in the market,” Ceylinco Life Managing Director/CEO Mr R. Renganathan commented. “We believe that our unrelenting focus on business fundamentals and astute investment strategies can be credited for this stellar performance.”

Ceylinco Life paid Rs 1.6 billion in net benefits and claims in the three months reviewed, a decrease of 7.81 per cent over the corresponding period of last year.

Total assets of the company grew by 5.4 per cent over the three months to Rs 101.738 billion.

At the end of the quarter under review, Ceylinco Life’s investment portfolio comprised of Government Securities (48 per cent); Fixed Deposits (13 per cent); Real Estate (9 per cent); Corporate Debt (29 per cent) and Others (1 per cent). All investments 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).

Ceylinco Life ended 2016 with Rs 23.43 billion in total income, with gross premium income of Rs 15 billion and investment income of Rs 8.78 billion.

Adjudged Sri Lanka’s Best Life Insurer in 2016 for the third consecutive year by World Finance, Ceylinco Life commenced operations in January 1988 and has close to a million lives covered by active policies. The company is acknowledged as the benchmark for innovation in the local insurance industry for its work in product research and development, customer service, professional development and corporate social responsibility.