HNB Assurance Group Ends Financial Year 2017 with a Superlative Growth

HNB Assurance PLC (HNBA) and its fully owned subsidiary HNB General Insurance Limited (HNBGI) posted a Profit After Tax (PAT) of Rs. 910 Mn for the year ended 31st December 2017, depicting a steady growth of 41% in comparison with the PAT of Rs.647 Mn recorded in 2016. The Group recorded a Gross Written Premium (GWP) of Rs 7.82 Bn, signifying a growth of 17% as contrasted with the GWP of Rs. 6.65 Bn recorded in the financial year 2016. The Parent Company, HNB Assurance PLC recorded a GWP of Rs 3.96 Bn and the subsidiary, HNB General Insurance Limited recorded a GWP of Rs. 3.86 BN.

The Group was able to yield an Interest and Dividend Income of Rs. 1,693 Mn, showcasing a growth of 43% against an Interest and Dividend Income of Rs. 1,180 Mn achieved during the previous year. Total Assets of the Group reached a mark of Rs. 18.65 Bn and Investments in Financial Instruments reached a value of Rs 15.05 Bn. During the course of 2017, the Life Insurance Fund reached a value of Rs. 10.9 Bn and the General Insurance Fund reached a value of Rs 2.38 Bn.

Expressing her views on the solid financial performance during the year under review, Chairperson of HNB Assurance Group, Mrs. Rose Cooray stated “the Group delivered a superlative financial performance during the course of 2017, depicting a steady flow of revenue generation and accelerating progress towards achieving our corporate goals during 2017. The Management guided by the Board has meticulously executed a well-crafted plan that focused on creating value to all stakeholders. Not only have we been able to fulfil the aspirations of the shareholders, the Group paid out Rs 2.29 Bn in claims and have focused on rewarding its employees, while contributing towards society through various corporate stewardship initiatives and we are confident that this growth we’ve embarked on will continue during 2018”.

Sharing his thoughts on the Group’s financial performance, Managing Director/CEO of HNBA and HNBGI Mr. Deepthi Lokuarachchi stated “the strategies deployed during the course of 2017 led the Group capture emerging and dynamic markets. The Group was able to maintain its solid industry position throughout the course of 2017, despite the volatile macro-economic conditions and heightened competition.  The financial growth of HNBA Group in 2017 has been consistent throughout the year. The positive growth momentum of these financial results was triggered by the strategic investments of the Group and the dynamic policies followed in underwriting risk. The General Insurance business showcased an exponential growth during the course of 2017, surpassing the growth rates of the industry. HNBGI was able to achieve this outstanding growth as a result of its well-focused risk selection, effective management of claims settlement as well as its pricing strategy. It is noteworthy, that both the Life and General Insurance businesses took great measures in settling claims, especially claims pertaining to catastrophes such as floods and epidemics such as Dengue. The Management of HNBA Group remains confident of its future outlook and in seizing every opportunity to further consolidate the Group’s financial standing”.


A Look Back at HNBA’s Community Based Engagements

Contemporary business practices in the 21st century revolves around business ethics and corporate social responsibility. Every business venture strives to do ‘good’ especially within the communities which they operate in. Challenging the established corporate norm and the clichéd meaning of ‘corporate social responsibility’, HNB Assurance (HNBA) drove many CSR initiatives during the course of 2017 to portray the true meaning of being a socially responsible corporate citizen.

Sharing his views, Managing Director/CEO of HNBA and its fully owned subsidiary HNB General Insurance Limited, Deepthi Lokuarachchi stated “as a business focused on protection and wellbeing of people, we challenge ourselves to drive social and environmental change. The Group pays great emphasis on the community which it operates in, the environment and its people. Great efforts are made across the Group to ensure that every possible measure is taken to minimize the impact on the environment and uplift the lives of people. The Group has categorized its corporate philanthropy into seven main focus areas. Our ultimate goal is to protect our community and help them smile and with every step taken, we strike to create a meaningful difference and enrich the living standards of the people”.

Under the award winning Water Stewardship program of the Company 04 schools were provided access to clean drinking water during the year, bringing the total of such facilities provided to 50 schools with over 6,500 students. Speaking on the CSR activities of the Company, Dinesh Yogaratnam, Head of Marketing of HNBA and HNBGI stated, “Amongst several other significant CSR initiatives, HNBA sponsored the Deaf Cricket Team of Sri Lanka for the 3rd Asia Deaf Cricket Cup which was held in Hyderabad, India under the category of sports. The Company provided financial assistance to veteran artists during 2017 under the category of arts and culture. We have been a part of a school rehabilitation program which focused on developing infrastructure of underprivileged schools and has provided multiple scholarships for university students under the category of education. Our Corporate Stewardship initiatives endeavors to touch as many lives as possible in areas that we feel has the most pressing need. We will continue to do our part, in our own way to help enliven and uplift the lives of those in our community”.


Araksha, a Pure Protection Preposition from HNB Assurance

HNB Assurance PLC (HNBA) announced the launch of another revolutionary product to its product portfolio recently. HNBA Araksha, a Life Insurance product which focuses purely on the protection element, providing a range of benefits to safeguard the family of the Life Assured when uncertainty strikes.

Sharing his views on the importance of protection based products in our market, Managing Director/CEO of HNBA and its fully owned subsidiary HNB General Insurance Limited (HNBGI), Mr. Deepthi Lokuarachchi stated “In today’s fast-paced world individuals’ face unforeseen tragedies that leaves their families and loved ones exposed to tremendous emotional stress coupled with financial burden. It is in their best interest to take sufficient measures to face such uncertainties associated with life. We often cannot do this ourselves and that’s where Life Insurance comes into play to ease our loved ones of the burden of financial stress. HNBA Araksha is our way of helping individuals in the very act of protecting themselves as well as their loved ones”.

Mr. Lokuarachchi further added, “The Management of HNBA has put in great efforts to develop a product which purely focuses on the protection aspect of the Policyholder and HNBA Araksha is a product developed with the expertise of a team of professionals with a thorough understanding of the behavioral and psychological aspects of our community. The product has been developed upon the analysis of current market trends, the real need of our community and the existing gaps in fulfilling the insurance needs of the community. And we strongly believe that a product of this nature would empower families to strike through, even during times of uncertainties”.

Sharing views on the product attributes, Chief Operating Officer of HNBA Mr. Prasantha Fernando stated “HNBA Araksha offers a range of special benefits. The product offers a minimum lump-sum of LKR 5 MN and a monthly income between LKR 25,000.00 – 200,000.00 for a maximum period of 10 years to the family upon the demise of the life assured. In addition to these main features, customers could opt for a number of additional covers such as Critical Illness, Medical Reimbursement and Total Permanent Disability covers. Furthermore, an extension of Critical Illness and Medical Reimbursement covers could also be obtained for spouse and children, subject to conditions. This product could be obtained through our Advisors and Bancassurance Officers who are well-versed in assessing and providing the best Life Insurance solutions to fulfill one’s protection needs”.