AVIVA NDB records outstanding growth

AVIVA NDB has consolidated revenue growth of 61 percent amounting to Rs 10.9 billion, over the corresponding nine months in the previous year. The total annual revenue of the previous year has been surpassed at the end of the third quarter in 2010 due to the strong topline performance of both the Life and General insurance businesses.

Group revenue in the third quarter 2010 was reported at Rs 4.9 billion which represents an increase of Rs 2.5 billion over the corresponding quarter in 2009. The total Gross Written Premium income for the period was also impressive, amounting to Rs 7,215 million, a growth of 54 percent over the corresponding nine months in 2009.

Life insurance business alone accounted for Rs 5,082 million recording a growth of 63 percent while General insurance generated a GWP of Rs 2,133 million, a strong growth of 36 percent.

AVIVA NDB Insurance Managing Director Shah Rouf attributed the exceptional growth to the company’s investment-linked expertise.

The backdrop of a strong equity market has contributed to an upsurge in our business that in nine months surpassed the revenue for the whole of last year, which incidentally was the highest sales recorded in the Company’s history. More importantly, our team of Wealth Planners have been revitalized by their new role and ability to serve both the Life and General insurance needs of our customers.

They are more efficient and effective in an IT-savvy environment that is also more customer-centric than ever before’, he commented. The Group reported a loss of Rs 13 million, after taxation for the nine months ending September 30 2010 while reporting a profit of Rs 114 million after tax for the third quarter ending September 30, 2010.

The corresponding quarter in 2009 reported a profit after tax of Rs 74.8 million for the Group. The marginal loss was after charging the large investment the company has made in the brand in the wake of transforming from Eagle to AVIVA NDB. Higher weather-related claims also contributed to this loss. There was also a prudent increase of provision for incurred but not reported (IBNR) claims.

The financial results for the period do not include a bottom-line contribution from the Life insurance business as this is determined at the end of the financial period, after the actuarial valuation of the life fund is determined.

The newly-appointed AVIVA NDB Chairman T R Ramachandran was confident of the company’s ability to achieve its ambitious goals for the year, based on the positive results of the third quarter and growth in scale.