Ceylinco Life posts Rs 5.7 b PAT | Sunday Observer

Ceylinco Life posts Rs 5.7 b PAT

Ceylinco Life Chairman R. Renganathan (left) and Managing Director/CEO Thushara Ranasinghe
Ceylinco Life Chairman R. Renganathan (left) and Managing Director/CEO Thushara Ranasinghe

Ceylinco Life has reported a total income of Rs. 29.21 billion for the year ending December 31, 2018, outperforming industry averages in its core business, to record premium income of Rs. 17.8 billion, an improvement of 13 per cent over the previous year.

Investment income had grown 10.83 percent to Rs. 11.39 billion for the year reviewed, which was an anticipated result in the context of the conditions that impacted on investment returns in 2018.

The company posted profit before tax of Rs. 7.16 billion, reflecting an increase of 12.69 percent after discounting a one-off surplus of Rs 3.4 billion that boosted the profits of 2017, following a regulatory change in the basis of the valuation of life funds.

Profit after tax for the year totalled Rs. 5.79 billion, a material reduction consequent to the Company’s tax provision increasing four-fold (from Rs. 340 million in 2017 to Rs. 1.363 billion in 2018), under the new life insurance tax regime introduced by the government. “Extending the protection of life insurance to as many people as possible remains our core business, but the success of a life insurance business is also dependent on how it invests and manages policyholders’ funds,” Ceylinco Life Chairman R. Renganathan said. “In that respect, it has been a good year for the company, even though the investment market softened and incomes of our prospective customers continued to be under pressure. Considering these factors, our success in increasing our share of the Life Insurance market is particularly noteworthy,” he said.

Ceylinco Life’s investment portfolio grew 12.44 percent over the 12 months to Rs. 103.74 billion as at December 31, 2018, while total assets increased 11.28 percent to Rs. 118 billion.

The Company’s Life Fund grew to Rs. 88.05 billion following a transfer of Rs. 6.46 billion during the year. Shareholders’ funds increased by Rs. 5.78 billion or 27.99 percent to Rs. 26.43 billion. Ceylinco Life’s net assets value per share, (after discounting the impact of the one-off surplus of 2017), stood at Rs. 528.51 as at December 31, (from Rs. 343.81 at the end of the previous year), reflecting an improvement of Rs. 184.70 or 53.72 %. Earnings per share (EPS) for the review period totalled Rs. 115.89, while return on equity was 21.93 percent.