The Board of Directors of AIA Insurance Lanka PLC released the financial results of the Company and its subsidiary (Group) for the year ended December 31, 2018.
The company’s consolidated revenue grew by 6 per cent to Rs. 18,232 million during the financial year 2018, from the figure reported for financial year 2017, driven by the growth in Gross Written Premium.
The Gross Written Premium (GWP) of the life insurance business, grew by 11 per cent to a record Rs. 12,739 million, driven by growth in regular premium business and a favourable shift in persistency.
There was continued improvements in customer engagement and premium collection, that resulted in a 22 per cent growth in premium collection from these initiatives.
Conventional life business GWP grew by 12 per cent, with growth from both the agency and bancassurance channels.
Investment income dropped by 3 per cent, due to impact on government bond values from the abolishing of national Withholding Tax credits (NTC) effective from 1st April 2018 with the enactment of the Inland Revenue Act 2017.
Consolidated profit after tax decreased from Rs. 13,442 reported in 2017 to Rs. 4,111 million in 2018.
The profit after tax for 2018 includes the transfer of life business surplus for the year, being Rs. 1,157 million and the creation of a deferred tax asset of Rs. 2,537 million arising from the tax regime change for life insurers with the enactment of the Inland Revenue Act 2017, which introduced a surplus based tax basis replacing the previous I-E tax basis.