Strong Growth at HNB Assurance

HNB Assurance PLC posted a strong growth in its turnover according to the interim results released for the six months ended June 30, 2011.

Its total turnover for the six months as measured by the Gross Written Premium (GWP) recorded a growth of 31 percent against the corresponding period last year.

The General Insurance turnover grew by 36 percent while the Life Insurance turnover recorded a growth of 26 percent. Motor (42 percent) and Miscellaneous (90 percent) classes of insurance recorded the highest rate of growth.

According to HNB Assurance Managing Director Manjula de Silva, the Company was able to achieve these high rates of growth due to both an increase in sales volumes and an upward revision in premium rates.

The company was also able to record a healthy 11 percent growth in its profit after tax in spite of a low interest rate environment and a poorly performing stock market curtailing the growth in investment income to just 5 percent. The company's earning per share stood at Rs 1.07 per share while its market capitalization as at June 30, 2011 stood at Rs.3 Billion. Fitch Ratings recently affirmed both the Company's Insurance Financial Strength Rating and the National Long Term Rating at 'A' (lka).