Ceylinco Life Fund tops Rs 30 b

Healthy business growth in the first nine months of FY 2010 has enabled Ceylinco Life to increase its Life Fund to Rs 30.6 billion as at September 30, 2009, achieving a noteworthy YoY growth of 15.8 percent. Figures filed with the Colombo Stock Exchange show that Ceylinco Life made a net transfer of Rs 4,169 million to its Life Fund for the nine months, 21 percent more than the Rs 3,446 million transferred in the corresponding period of last year. The value of the company’s investments grew by nearly 20 percent or Rs 4,664 million to Rs 28 billion in the period reviewed, while Total Assets increased by 14 percent to Rs 34.9 billion.

Total income for the nine months exceeded Rs 8.5 billion, growing nearly 8 percent, helped by Premium Income of Rs 6 billion (up 9.6 percent) and Investment and Other Income of Rs 2.45 billion, which improved by 3.6 percent over the first nine months of 2009.

“The growth achieved at the end of the third quarter is very encouraging and confirms that Ceylinco Life remains the most successful life insurer in Sri Lanka,” the company’s Managing Director and CEO R Renganathan said. “We expect to end 2010 as the market leader for the seventh successive year,” he said.

Ceylinco Life’s investments pertaining to the Life Fund are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No 43 of 2000. These investments are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL). In the period reviewed, the company’s investment portfolio comprised of Government Securities (38 percent); Licensed Private Banks (14 percent); State Banks (24 percent); Real Estate (12 percent); Corporate Debt (6 percent) and Others (6 percent).

The company’s solvency margin, another key indicator of financial health, had improved further in the nine months reviewed, and stood at more than eight times (8.82) the statutory requirement as at September 30,2010.