HNBA Posts Steady Growth in First Half of 2018

HNB Assurance Group delivered impressive financial results for the 1st half of 2018, posting a Profit After Tax (PAT) of LKR 805 MN. The 1st half PAT is inclusive of the regular profits together with the One-off Surplus which arose from the insurance industry valuation rule change as well as the 1st quarter valuation of the Life Fund under the new valuation method. The profit growth thus reflected the 357% growth over prior. However, the resultant increase remains uniquely applicable only for the year 2018, the Company communication stated. The Group recorded a Gross Written Premium (GWP) of LKR 4.2 BN depicting a growth of 12% amidst very tight market conditions when compared with the GWP of LKR 3.8 BN recorded during the corresponding period of 2017.

Sharing her views on the financial results, Mrs. Rose Cooray, Chairperson of HNBA and HNBGI stated, “The Group has made progress during the first half, further strengthening our footprint in the insurance industry. These impressive results were achieved amidst many economic and operational challenges. The first half operating results showcase solidity of the HNBA Group and the improved efficiencies of the Life and General businesses and the strategies in place to cater to the insurance needs of our community. Both businesses of the Group are committed to deliver value to all stakeholders as well as to further consolidate firm standing of the Group in the insurance industry”.

Expressing his views on the first half financial results, Mr. Deepthi Lokuarachchi, Managing Director/CEO of HNBA and HNBGI stated, “These results are an outcome of the Group’s well-founded strategies and well-focused management practices. In a challenging economic backdrop, the Group was successful in achieving a GWP growth of 12% during 1H 2018”. Speaking on the performance of each business, Managing Director/CEO, Mr. Lokuarachchi commented “classes such as motor and fire of the General Insurance business showcased an impressive growth while other classes including the Life Insurance business have grown consistently with the market ratios of growth. Total assets of the Group reached LKR 20 BN and the investment in financial instruments surpassed the value of LKR 16.5 BN. As at 30th June 2018, the Life Insurance Fund reached a value of LKR 11.6 BN and the General Insurance Fund reached a value of LKR 2.6 BN”. Speaking on the Group’s future prospects, Mr. Lokuarachchi added that the Group remains confident of its ability to deal with ongoing and imminent challenges facing the business and to grow beyond benchmarks.

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Protecting our People, Protecting Our Community: HNBA Conducts a Workshop on Cancer Awareness

Taking the initial step to create awareness on the causes and prevention of cancer, HNB Assurance PLC (HNBA) held a workshop for its staff recently. This workshop was conducted by Dr. Suraj Perera, Board Certified Specialist in Community Medicine and Consultant Community Physician of the College of Community Physicians of Sri Lanka.

Sharing his thoughts Managing Director/CEO of HNBA and its fully owned subsidiary HNB General Insurance Limited, Mr. Deepthi Lokuarachchi stated “as a business sworn take care of our community, we believe that real protection and care truly begin with individuals taking care of themselves and leading a healthy lifestyle and thereafter by encouraging their families and friends to follow similar steps. In the backdrop of the launch of our Hope Cancer Insurance plan, we realized that a workshop of this nature will help in educating as well as in creating awareness firstly amongst our staff for the betterment of themselves and their families and as we believe that our staff would carry this message to the community as ambassadors of the brand”.

Sharing his views on the Cancer Insurance Plan, Chief Operating Officer Mr. Prasantha Fernando stated, “our lifestyles, health habits even hereditary conditions contribute to the development of a cancer and cancer can touch us all at any point in our lives despite our social strata. Hence, it is up to us as individuals to take necessary measures to protect ourselves. The cost of cancer treatment could often pose a threat to family savings and the financial foundation. Considering all these aspects, HNBA launched its Cancer Insurance Plan, ‘Hope’ with the primary objective of providing a ray of hope through financial protection to those individuals and families to overcome this dreaded disease”.

Speaking at the workshop Dr. Suraj Perera stated “this workshop was conducted with the aim of creating awareness on cancer and its prevention. Amongst many contributing factors for the development of a cancer, unhealthy dietary habits, smoking, consumption of alcohol and chewing of betel are identified as the top causes for cancer and it is important to communicate these to individuals as prevention with no doubt is better than cure. Workshops of this nature surely help in making a lasting influence amongst responsible individuals. And we believe that heightening people’s awareness on cancer and its precautions is the first step towards fighting cancer and will help in making a difference in their lifestyles which will ultimately have a positive impact on the wellbeing of our community”.

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HNBA & HNBGI Relocates its Rathnapura Branch

HNB Assurance PLC (HNBA) and its fully owned subsidiary HNB General Insurance Limited (HNBGI) relocated the Rathnapura Branch to a new business premises. The newly relocated branch offers an array of Insurance products interwoven with an excellent customer service. The branch includes a spacious atmosphere together with ample parking in order to enhance customer experience and the convenience of obtaining our insurance solutions.

Sharing his views, Chief Operating Officer of HNBA Mr. Prasantha Fernando stated “customer convenience has been a key strategic focus of the Company and we have taken several measures to expand and upgrade our branch network in order to provide convenience and easy access to our growing customer base. Our branch network expansion will continue as it is pivotal to the growth and development of the business”.

Chief Business Officer of HNBGI Mr. Jude Benjamin expressed his views stating “as HNBA and HNBGI continue to honor the unwavering commitment to deliver service excellence to its customer base, branch expansions and relocations ensure a more convenient and a customer-centric approach and we will continue to offer a vibrant range of Life and General Insurance solutions through our expertise and capabilities”.

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HNB Assurance Group Delivers Outstanding Financial Results for Q1 2018

HNB Assurance Group delivered a superlative financial performance, reporting a Profit After Tax (PAT) of LKR 699 MN for Q1 2018 reflecting a steady growth of 844% in comparison to the PAT of LKR 74 MN recorded during the corresponding period of 2017. This growth mainly resulted due to the transfer of One-off surplus of LKR 381 MN to Shareholder Fund from Non-Participating Policyholder Fund due to the change in liability valuation method and the surplus transfer made during the first quarter 2018 amounting to LKR 210 MN.

In analyzing the financial results of the period under review, the Group recorded a Gross Written Premium (GWP) of LKR 2.19 BN, depicting a consolidated growth of 15% in comparison with the GWP of LKR 1.9 BN recorded during the first quarter of 2017. The Parent Company, HNB Assurance PLC (HNBA) recorded a GWP of LKR 1.06 BN when compared with the GWP of LKR 988 MN recorded during Q1 2017. The subsidiary, HNB General Insurance Limited (HNBGI) recorded a GWP of LKR 1.14 BN against a GWP of LKR 929 MN recorded during the corresponding period last year, reflecting a growth of 22%. Together with the One-off Surplus, HNBA posted a PAT of LKR 658 MN for the period, recording a growth rate of 1,159% while the PAT excluding One-off Surplus and Surplus Transfers during Q1 marked a 28% growth. HNBGI recorded a PAT of LKR 41 MN when compared with the PAT of LKR 22 MN recorded during the first quarter of 2017, showcasing a growth of 88%.

Sharing her views on the financial results, Chairperson of HNBA and HNBGI Mrs. Rose Cooray stated “In a challenging period for the entire insurance industry, the Company was able to deliver steady financial results for the first quarter of 2018. These results showcase the effectiveness of our customer centric strategies and the Company’s day-to-day focus on operational efficiencies in capturing new market segments. These financial results reassure stability and the positive growth momentum of the Group and will continue to steer its course through challenging market conditions by focusing on its strengths, core competencies and synergies of the Group. It is pertinent to note that the PAT of the Life Insurance Company includes a surplus transfer of LKR 210 MN made as per the recommendation of the Consultant Actuary, subsequent to the valuation of the Life Fund as at the end of 1Q 2018. Further, the Company also transferred LKR 381 MN to Shareholders Fund, with the approval of the Insurance Regulatory Commission of Sri Lanka (IRCSL), as One-off Surplus arising from Non-Participating Life Insurance Fund due to the change in the valuation method of the Life Fund as per the regulations of the IRCSL. The one-off surplus will be kept as a Restricted Regulatory Reserve as per the Directions of the IRCSL.

Speaking on the performance of the Group, Managing Director/CEO of HNBA and HNBGI Mr. Deepthi Lokuarachchi stated “In spite of several macro-economic challenges prevailing in the country, the Group was able to achieve a GWP growth of 15% during the first quarter. The Individual and Corporate policies of the Life Insurance Company and categories such as Fire, Motor and Marine of the General Insurance Company depicted a promising growth. During the first quarter, Total Assets of the Group reached LKR 19 BN and the Investments in Financial Instruments surpassed the mark of LKR 15 BN. The Life Insurance Fund and the General Insurance Fund reached values of LKR 10.9 BN and LKR 2.5 BN respectively”. Speaking on the Group’s future outlook Mr. Lokuarachchi added “These results are a testament to the efforts, strategies and the positive direction of the Group. The Group’s performance ambitions remain high as we continue to develop dynamic products and capture growing markets in both Life and General Insurance segments whilst sustaining our core business model to benefit our stakeholders”.

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HNBA Holds its Annual Banca Award Ceremony

Felicitating the trailblazers of its Bancassurance Channel, HNB Assurance PLC (HNBA), held its annual Banca Award Ceremony recently at the Water’s Edge, Colombo. This glamorous event was graced by the presence of Mrs. Rose Cooray, Chairperson of HNBA and its fully owned subsidiary HNB General Insurance Limited (HNBGI) as Chief Guest, together with Mr. Deepthi Lokuarachchi and Mr. Kalum Wijesooriya, and Members of the Senior Management of HNBA.

Sharing her thoughts at the event, Mrs. Rose Cooray stated “the Bancassurance Channel plays a significant role and makes a noteworthy contribution to the growth of the Company. The Banca Channel has shown a year-on-year double digit growth and the synergies between HNB and HNBA have created a set of dynamic expertise and an unmatchable competitive advantage. This natural fit surely reinforces our footprint and our market standing. HNBA is grateful for the support of HNB, the Parent Shareholder for strengthening this strategic partnership”.

Expressing his thoughts Mr. Deepthi Lokuarachchi, Managing Director/CEO of HNBA and HNBGI stated “I take this opportunity to thank the Bancassurance team of HNBA for their continuous dedication and efforts and the cooperation between HNB and HNBA has resulted in providing both financial and protection solutions under one roof. This strategic partnership has helped us in capturing growth in specific market segments across the country especially through the widespread branch network of HNB”.

Speaking at the event, Mr. Kalum Wijesooriya, Assistant General Manager, Deposits and Remittances & Chief Employment Experience Officer of HNB stated “this strategic partnership would enable both entities to broaden its scope in terms of capturing new market segments and building its clientele and the shared goals and intentions of HNB and HNBA would further strengthen this strategic partnership”.

Amongst the plethora of awards presented at this prestigious event, Ms. M. H. N. Sandamali attached to the HNBA Matara Branch was awarded as the Best Bancassurance Officer of 2017.

Image Caption: Chairperson of HNBA and HNBGI Mrs. Rose Cooray presenting the Award to the Best Bancassurance Officer together with the Managing Director/CEO of HNBA and HNBGI Mr. Deepthi Lokuarachchi, Chief Operating Officer of HNBA Mr. Prasantha Fernando, Chief Business Officer of HNBA Mr. Ivan Nicholas and Assistant General Manager, Deposits and Remittances & Chief Employment Experience Officer of HNB Mr. Kalum Wijesooriya.