Softlogic Life’s FY22 results grows to LKR 23 Bn GWP amidst tough macroeconomic challenges
- Top-line growth of 15%
- PAT amounted to Rs. 2.7 Bn, an increase of 27% with ROE of 25%, Recurring EPS 12.85
- PBT stands at Rs. 4 Bn
- Ranked as the second-largest in the life insurance market
- Company paid claims of Rs. 8.3 Bn
Softlogic Life recorded a superior full year performance in a crisis-affected business landscape, posting Gross Written Premium (GWP) of Rs. 23,083 million for the year ended 31 December 2022 with an increase in top-line growth of 15% compared to the corresponding period of last year. The Company has stood firmly with its policyholders in the face of the tough macroeconomic conditions, paying claims of Rs 8,264 million for the period.
During the period in review, Softlogic Life’s market share is at 16.87%, in comparison to 16.08% as of 31 December 2021. The market share increase continues to rank Softlogic Life as the second-largest in the life insurance market, overtaking much older players to establish strong growth momentum. Compared to the estimated Industry GWP growth, which was 9.6% during 2022, Softlogic Life recorded GWP growth of 15%.
The company reported a 10-year Compound Annual Growth Rate (CAGR) of 28% of GWP, while the industry 10-year GWP CAGR growth was at 14%. Softlogic Life also notes that its contribution to increasing insurance penetration in the country has increased during the period in review with 133,872 policies issued, insuring more than 1.5 million Sri Lankan lives.
Profit after tax (PAT) for the period in review rose to Rs. 2,683 million, an increase of 27% YoY. Profit before tax (PBT) grew by 36% compared to last year at growth of Rs. 1,065 million. The company’s operating expense ratio remained at 22% irrespective of the inflation hike during 2022 as a result of prudent and efficient expense management initiatives adopted. Furthermore, Softlogic Life maintained a healthy Capital Adequacy Ratio (CAR) of 287%, well above the regulatory CAR requirement of 120%.
The company recorded impressive Return on Equity of 25% and Earning per share of LKR 7.15 after providing one off provision for impairment. Recurring Earning per share for the year 2022 increased to LKR 12.85 from LKR 5.61 per share.
Commenting on the financial performance of the Company, Ashok Pathirage, Chairman of Softlogic Life Insurance PLC, stated, “Despite numerous challenges in a tough business landscape, we have performed well to maintain our position as the second-largest life insurance company in Sri Lanka, growing our market share further to 16.87% by the end of 2022. These accomplishments were facilitated by the strategies we deployed and the strong execution of those strategies that have enabled the Company to sustain momentum in spite of the prevailing macro challenges.”
Since its inception, Softlogic Life has been striving to improve the quality of life of Sri Lankans through relevant disruptive innovations and digitalization. Industry-first innovations such as one-day automated claims settlement, hospitalization claim settlement, 100% digitalized sales platform, automatic policy issuance and mobile based micro products has helped the company to deliver a superior customer experience, which has been instrumental in enhancing its competitive position. Furthermore, the company’s wins at prestigious financial award ceremonies such as CA Annual Report Awards / TAGS Awards, CMA Integrated Reporting Awards portrays the company’s firm commitment to adhere to the highest standards in Transparency in financial reporting at all times beyond regulatory requirement. In 2022 Softlogic Life took home the Silver Award for Overall Excellence in Annual Financial Reporting for the second consecutive year, surpassing giant Sri Lankan conglomerates who have dominated top positions for years. The company has been honored with “Brand of The Year” two times at Effie Awards in 2019 & 2021 and received numerous Gold Awards at SLIM Brand Excellence Awards & SLIM Digi Awards.
While applauding their expertise in disruptive technologies and smart innovations, which has paved a path for state-of-the-art life insurance solutions for Sri Lankans, these industry awards commend the outstanding brand excellence and resilience Softlogic Life has displayed during a challenging year, ensuring consistency and true commitment for their policyholders countrywide amidst tough social and economic conditions.
Iftikar Ahamed, Managing Director of Softlogic Life Insurance PLC, commented, “For the nation as well as the Company, this financial year has been a tough one. However, coupled with the execution of forward-looking business strategies and impressive customer-centric innovations, Softlogic Life has been able to withstand the challenges and deliver exceptional results in this adverse operating environment. We have seen renewal premium collection exceeding budget which is a phenomenal achievement in the current conditions whilst the combined first year and renewal premium already make our Company the market leader. Our unwavering focus on providing our customers protection benefits, the main stay being health covers, have made us the Insurer of choice for both Personal and Group business as well. We have come through an exceptional 10year journey and are within sight of the pinnacle of the industry whilst delivering exceptional value to all our stakeholders. We look to the future as a team that has surmounted the unthinkable and come off with flying colours.”
Softlogic Life Insurance PLC is a subsidiary of Softlogic Capital PLC and is part of the Softlogic Group, which is recognised as one of Sri Lanka’s most diversified and fastest-growing conglomerates with interests in Healthcare, Retail, ICT, Leisure, Automobiles and Financial Services. Significant stakeholders in the company include global investors Leapfrog Investments.