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.

HNBA and HNBGI Holds Annual Staff Conference

HNB Assurance PLC (HNBA) and it fully owned subsidiary HNB General Insurance Limited (HNBGI) held its Annual Staff Conference recently at BMICH, Colombo. The event was graced by the presence of Mrs. Rose Cooray, Chairperson of HNBA and HNBGI as chief guest together with Mr. Deepthi Lokuarachchi, Managing Director/CEO of HNBA and HNBGI with members of the Boards of HNBA and HNBGI and other distinguished guests.

Speaking at this special occasion, Chairperson of HNBA and HNBGI Mrs. Rose Cooray stated, “this year we have come together as one family to celebrate the achievements, winning spirit and talents of our staff and the Annual Staff Conference of HNBA and HNBGI hold great significance in our event calendar. It is important to recognize and reward the laudable  efforts and the success of the Group which owes a great deal to the efforts and dedication of our staff and today we stand together to thank and appreciate our staff for their immense contribution to make HNBA and HNBGI solid players in the market”. Speaking on the future outlook of the Group Mrs. Cooray added “the Group must strive to push the envelope further in order to strengthen its presence in industry and should take all endeavors towards developing its market share and rank. The two Boards remain committed and are confident that this dynamic team would continue to add greater value to all its stakeholders”.

Sharing his thoughts, Managing Director/CEO of HNBA and HNBGI Mr. Deepthi Lokuarachchi stated, “The HNBA Group was able to deliver a solid performance and was able to challenge the industry during 2017 and our growth was fueled by the top-notch performance of our staff at every capacity. Each year we recognize a number of highfliers who have pushed boundaries and are presented with the Chairman’s Award for Excellence. Reiterating the importance of facing challenges in the market Mr. Lokuarahchi added “it is important to review and revisit our product portfolio as a mechanism to cope with the challenges of this economic backdrop as well as to overcome the socio-economic challenges prevailing in the market and with the expertise, competencies and the go-getter spirit of our staff, we’re sure the Group will be able to create an unmatchable competitive advantage and will be able to yield more significant results during this year”.

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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”.

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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”.

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