HNB assurance posts impressive results

BANKING: HNB Assurance Ltd., has reported a profit after tax of Rs. 60.3 million for the year ended 31st December 2005 registering a growth of 268% over the profit after tax of Rs. 16.4 million recorded in the previous year.

Even after removing the impact of losses caused by the tsunami from last year's comparative figure, the growth in profit after tax amounts to 45.3% The growth of 51% achieved in the combined turnover of the company contributed significantly towards this achievement.

Its general insurance premium income grew by 39% over the last year to reach Rs. 470 million while its life insurance premium income grew by 72% to reach Rs. 354 million.

Another noteworthy contributor to the enhanced level of profitability was the recognition of a surplus from life insurance for the first time since the commencement of life business by the company. Accordingly, the company transferred Rs. 10 million from the Life Fund to the shareholder's account after making adequate provisions for solvency margins and contingencies.