Ceylinco Life net profit declines to Rs. 2.9 b | Sunday Observer

Ceylinco Life net profit declines to Rs. 2.9 b

Chairman R. Renganathan and CEO Thushara Ranasinghe
Chairman R. Renganathan and CEO Thushara Ranasinghe

Ceylinco Life has reported net income of Rs 14.7 billion for the first half of 2019, an increase of 10.55 per cent over the corresponding period of last year, as a result of investments yielding noteworthy returns and premium income recording equitable growth.

The Company’s premium income for the six months ending June 30, 2019 improved by 5.72 per cent to Rs 8.8 billion while investment income for the period grew by 16.1 per cent to Rs 5.9 billion.

Profit before tax increased by 13.55 per cent to Rs. 3.8 billion, but net profit declined by 5.37 per cent to Rs. 2.9 billion, largely as a result of income tax expense more than tripling, from Rs 303 million for the first half of 2018 to Rs. 918.4 million for the six months under review, (consequent to the new tax law that came into effect from April 1, 2018), the Company said in a media release.

“While the increase in our effective tax rate takes a big bite out of profits, our results demonstrate the solid operational gains the Company continues to make even in a period of depressed market sentiment,” Ceylinco Life Managing Director Thushara Ranasinghe said.

“We attribute this to the confidence of customers in the inherent strength and stability of Ceylinco Life, and our unwavering adherence to our business fundamentals and core values despite the pressures of the business environment,” he said.

Total assets of Ceylinco Life increased by Rs 18.8 billion or 15.9 per cent since 31st December 2018 to Rs 136.9 billion as at 30th June 2019, while the Company’s Life Fund grew by Rs 2.8 billion or 3.2 per cent over the six months.

The Company paid out Rs 5 billion as net claims and benefits in the six months reviewed, an increase of 11.7 per cent over the Rs 4.5 billion paid in the corresponding period of 2018.

Ceylinco Life ended 2018 with assets of Rs 118 billion, total income of Rs 28.7 billion, premium income of Rs 17.8 billion, a Life Fund of Rs 88.05 billion, an investment portfolio with a value in excess of Rs 103.7 billion and net profit of Rs 5.79 billion. 

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