HNB Assurance maintains growth momentum

HNB Assurance has maintained its growth during 2004 in respect of both General and Life Insurance business, according to the company's Annual Report and Accounts released to shareholders recently.

The General Insurance premium income grew by 39% over the previous year to record Rs. 338.7 million, while the Life Insurance premium income grew by 97% to stand at Rs. 205.9 million at the end of 2004. The company has thus progressed to sixth position in terms of its market share in General Insurance. It also maintained the seventh position in respect of Life Insurance.

The company had generated a profit after tax of Rs. 16.4 million after absorbing an additional net claims cost (including provisions) of Rs. 25.1 million resulting from the tsunami disaster. The company had settled Rs. 13.6 million worth of claims over and above what it was legally liable to settle, taking into cognisance the immense hardship suffered by a section of its clients.

During the year under review, the company had strengthened its technical capabilities by finalising a strategic alliance with ICICI Prudential Life Insurance Company Ltd., India's largest private sector insurance company.

This alliance was struck to improve agency management, sales training, bancassurance, product development and other areas related to Life Insurance, according to Chairman of the Company, Rienzie T. Wijetilleke.

Manjula de Silva, CEO, states that in addition, steps were taken to expand the regional distribution network of the Company during the year. A new Regional Development Centre was established in Trincomalee while the Customer Centre in Jaffna was upgraded to a Regional Development Centre, increasing the total number of such centres to 12. Meanwhile, the company opened two new Customer Centres, one in Moneragala and another in Colombo, named City Office and located at the Head Office premises.

HNB Assurance, having established technically sound business processes and a strong distribution network, looks forward to a period of rapid growth, pursuing a strategy of expanding market presence while maintaining professional underwriting standards.