Insurance pays higher bonus

SLI recorded its highest ever consolidated profits before tax amounting to Rs. 15.1 billion and profit after tax of Rs. 13.3 billion compared to Rs. 2.9 billion and Rs. 1.5 billion respectively in 2009.

Handing over the Annual Report to President Mahinda Rajapaksa, SLI chairman Gamini S. Senarath stated that this is a glowing example of an efficiently managed state owned organization dispelling the myth that state cannot run profitable businesses.

Sri Lanka Insurance Corporation Limited (SLI) disclosed its financial performance for the year 2010 through the official handing over of its Annual Report and Audited Financial Statements for the year ended December 31, 2010.

SLI also declared a staggering Rs. 3.4 billion bonus to its life policy holders for the year 2010 which is incidentally the highest ever in the history of the company and the insurance industry in Sri Lanka surpassing the Rs. 3 billion declared in 2009. As the national insurer, providing life assurance protection to the masses, SLI covers a wide spectrum of people in all walks of life.

To symbolize this occasion, seven selected life policy holders from different professions and vocations received their bonus certificates from the President at the Temple Trees.

SLI in the year 2010 reported a 24.6 per cent growth in life insurance premium increasing to Rs. 6 Billion from Rs. 4.8 Billion in 2009 whilst general insurance premium grew by 5.7 per cent to Rs. 9.2 Billion. The Company achieved a combined Gross Written Premium (GWP) growth rate of 12.5 per cent during the year. General Insurance contributed 60.7 per cent towards the total GWP whilst Life Insurance contributed 39.3 per cent.

"In 2010 we remained the largest composite insurance provider in Sri Lanka. Our performance during the year has re-affirmed our status as not only the leader but also the most robust in the industry", noted Chairman of SLI Gamini S. Senarath. "Our progressive business approach has enabled us to proactively benefit from the opportunities that arose, and will continue to arise, in post conflict Sri Lanka. SLI contributed immensely to the consolidated fund in 2010 by declaring an interim dividend of Rs 6.7 Bn. Additionally, we have also contributed Rs 1.94 Bn by way of taxes, said Senarath.

Speaking at the occasion, Mohan De Alwis, Managing Director/CEO said that the year 2010 was a very eventful year for the company achieving many milestones. SLI entered into many strategic business agreements with a long-term vision in developing business both with private sector companies and large State owned financial institutions in our approach to improve growth & performance.

Whilst concentrating on the development and growth of our core business, we have been looking for diversification as well as strategic long-term investments. 'With this in mind, we made a strategic investment in November 2010 purchasing 100 per cent shareholding of Shell Gas Terminal Lanka (Private) Limited and 51 per cent of Shell Gas Lanka Limited, thus acquiring their controlling interest & now operate as Litro Gas Terminal (Lanka) Limited & Litro Gas Lanka Limited respectively engaged in importation, storage, filling and distribution of LPG in Sri Lanka' said Mr De Alwis.

We acknowledge the dedication, commitment and understanding of our employees, field staff, strategic sales partners, various Government Institutions & brokers who worked diligently to deliver these outstanding results. We sincerely thank our clientale for their loyalty and trust placed with SLI & look forward to their continued association as the insurer of first choice,' De Alwis added.

'SLI was extremely successful to follow the capital market developments in Sri Lanka and were able to exploit the opportunities that were available to us thus boosting the income from investments to exceptionally high levels. SLIC has invested in admissible assets and maintained its solvency requirements' said Executive Director Piyadasa Kudabalage.

SLI's life fund increased from Rs. 44 Billion in 2009 to Rs 52.6 Billion in 2010, which is a 20 per cent growth, due to prudent investment policies adopted by the company providing further strength and stability to the life policy holders.

SLI has improved its risk based capital position over the years and have been upgraded by Fitch Ratings Lanka on National Long-Term rating and National Insurer Financial Strength to 'AA(lka) from AA- (lka) stable recently, Kudabalage said.