Increase in gross written premiums in 2010

The aggregate Gross Written Premium (GWP) reported from long-term and general insurance businesses totalled up to Rs 68,493 million in 2010 (2009: Rs 57,252 million) recording a significant increase of 19.63 percent compared to 2009, the Insurance Board of Sri Lanka said in its 2010 annual report.

The GWP of long term insurance business amounted to Rs 31,151 million (2009: Rs 23,767 million) showing an increase of 31.07 percent while GWP of general insurance business amounted to Rs 37,342 million (2009: Rs 33,485 million) reporting a growth of 11.52 percent compared to 2009.

The growth in GWP for both long-term and general insurance sectors is mainly driven by improved business confidence after the restoration of peace, new business opportunities emerging from the North and East of the country, growth in GDP during 2010, recovery of global economy from the recession and reduction in policy lapses compared to the previous year as a result of improved socio-economic factors of the country, the IBSL said.

The general insurance sector accounted for 54.52 percent (2009: 58.48 percent) of aggregate GWP while the contribution of long-term insurance sector was 45.48 percent (2009: 41.51 percent) of the total GWP depicting a steady growth each year.

This significant improvement in life insurance is underpinned by growth in new businesses in 2010, especially due to the introduction of new life insurance products such as investment linked products and a range of retirement products to the market.

Total assets of insurance companies amounted to Rs 222,243 million (2009: Rs 181,045 million) as at December 31, 2010 indicating a significant growth of 22.76 percent compared to 2009.

Assets pertaining to long-term insurance business rose to Rs 139,592 million (2009: Rs 118,305 million) at the end of 2010 by recording a growth of 18 percent.

Assets of general insurance business and shareholders amounted to Rs 82,651 million (2009: Rs 62,740 million) reflecting a growth of 31.74 percent over 2009.