Ceylinco Life extends leadership gap in 1st half of ’06

COMPANY RESULT: Ceylinco Life, the company designated the market leader in the local life insurance sector by the Insurance Board of Sri Lanka (IBSL), has extended its leadership in the first half of 2006 with premium income of Rs. 2735 million, forging ahead of the competition.

The figure for the six months ending June 30, 2006, represents a healthy growth of 24 per cent over the corresponding period of last year and gives Ceylinco Life a substantial lead over its competitors, the company said this week.

Ceylinco Life’s premium income consolidated with the premium income of the Ceylinco General Insurance Division adds up to a total premium income of Rs. 7,358 million for the first half of 2006, and reinforces Ceylinco Insurance’s status as the overall leader in the insurance market.

Commenting on these results, Ceylinco Life’s Chief Executive Director R. Renaganathan said: “It is very pleasing to note that we have maintained the sales momentum built up over the past two years in the first half of this year, despite the very challenging conditions that prevailed in this period.”

Ceylinco Life sold 82,958 new policies in the six months reviewed, at an average of more than 13,800 a month, or 460-plus new policies every day.

The company’s Life Fund, which stood at Rs. 11.9 billion at December 31, 2005, exceeded Rs. 13 billion (Rs. 13,025 million) as at June 30,2006, consequent to a transfer of more than Rs. 1,100 million for the first half of the year.

Ceylinco Life established its leadership in the life insurance segment in 2004 with Premium Income of Rs. 3,962 million, a lead of Rs. 630 million over its closest competitor.

By the end of 2005, this lead had grown to Rs. 1,167 million, and the company’s premium income of more than Rs. 4,800 million represented a market share of 31 per cent, eight percentage points ahead of the second placed company.

The consolidated premium income of Ceylinco Life and the General Insurance Division at the end of 2005 represented a lead of Rs. 2,194 million over that of the second placed insurance company in the country, and Renganathan said he was confident this dominance would be maintained in the current financial year.