AIA Insurance Lanka PLC (“AIA Sri Lanka” or the “Company”) today announced the financial results of the Company and its subsidiaries for the six months ended 30 June 2016.
The main highlights are:
Improved persistency brings significant growth
· Consolidated revenue increased 19 per cent to LKR 6,852 million driven by gross written premium (GWP) growth of 26 per cent to LKR 4,858 million. The growth in GWP was mainly driven by persistency improvements and a change in premium mode mix.
· Conventional life GWP increased 32 per cent to LKR 4,373 million.
· Investment income went up 25 per cent to LKR 2,297 million, benefitting from the increase in interest rates.
· Consolidated profit after tax amounted to LKR 120 million, an increase of 38 per cent compared with LKR 87 million in the corresponding period in 2015. The surplus of the life insurance business is reported annually at the year end and is therefore not included in the half-year profit.
Shah Rouf, Chief Executive Officer of AIA Sri Lanka, said:
“AIA Sri Lanka’s consolidated revenue was boosted by a solid 26 per cent increase in our GWP compared with the first half of 2015. We believe this growth momentum will strengthen further in the second half. AIA remains committed to growing our business both quantitatively and qualitatively and our execution of growth strategies this year has reflected this. We are always looking for ways to make doing business with us easy for our customers as well as our Wealth Planners. As part of this, the launch of mCash mobile phone wallet last quarter has already become a key premium collection method.”
William Lisle, Chairman of AIA Sri Lanka, said:
“I am very pleased that AIA Sri Lanka had a strong first half in 2016. Our initiatives under Premier Agency Strategy and Bancassurance partnerships are showing excellent results and we are confident that AIA Sri Lanka is well positioned to benefit from the growth momentum of the Sri Lankan life insurance market.”