HNB Assurance PLC (HNBA) and its fully owned subsidiary HNB General Insurance Limited (HNBGI) posted a Profit After Tax (PAT) of Rs. 176 million for the second quarter of 2017, reflecting a phenomenal growth of 332% compared to the PAT of Rs. 41 million recorded during the same period of 2016. The impressive performance of the Group reflected in all performance indicators. The Parent Company, HNBAposted a PAT of Rs 100 million marking a growth of 54% while its subsidiary with a PAT of Rs. 76 million recorded a more impressive growth of 414% in PAT.
During the second quarter of 2017, the Group achieved a 22% growth in its Gross Written Premium (GWP), depicting a value of Rs. 3.8 billion as against the GWP of Rs. 3.1 billion recorded during the comparable periodin 2016. The Life Insurance segment contributed a GWP of Rs. 1,919 million and the General Insurance segment contributed a GWP of Rs. 1,901 million to the overall GWP. The Life and General Insurance segments recorded Premium growth rates of 17% and 27% respectively. During the second quarter of 2017, the group recorded an investment income growth of 54% reaching a value of Rs. 771 million against Rs. 500 million recorded during the same period of 2016.
The Total Assets of the Group reached a value of Rs. 16 billion and Investments in Financial Instruments reached a value of Rs. 13 billion. During the same period the Life Insurance Fund and General Insurance Fund grew by 14% and 29% reaching values of Rs. 10 billion and Rs. 2.5 billion respectively.
Sharing her thoughts on the Group’sfinancial performance, Chairperson of HNBA and HNBGI, Rose Cooray stated, “We are indeed delighted to announce the results of another successful quarter. Both Life and General Insurance segments have showcased steady revenue growths. The concerted and well targeted efforts the Group has taken throughout 2017 to grow profitable business has made both HNBA and HNBGI more resilient and competitive Insurance companies in the industry. The Group continues to leverage on its core competencies in stabilizing its market share by delivering a substantial long-term value to our shareholders whilst meeting all our obligations to our valued customers with highest responsibility. These financial results are a testament of the Group’s continuous financial stability and its growth momentum”.
Speaking on the financial performance of the Group, Managing Director/CEO of HNBA and HNBGI, Deepthi Lokuarachchi stated, “Despite many tough challenges in a rapidly changing market, the Group has made significant strides by creating a stronger platform for growth by delivering a steady financial performance. This growth momentum of the Group showcases the strength of our business strategy and we are confident that both our Life and General Insurance companies will reach out as strong players in this industry.”