HNB 1H profit tops Rs 49.3 m

Motor duty reduction helps business:

Sanjeevi JAYASURIYA

Manjula de Silva

The insurance industry has continued its growth momentum where a conducive environment has provided impetus for industry sustainability.

HNB Assurance was able to record positive growth for the first half of 2011 compared to the same period last year. The turnover grew by 31 percent to reach Rs 1.4 billion contributed by a 26 percent increase from life and a 36 percent increase from the general insurance sector.

“We recorded a very good growth in all segments and two classes from the general sector, motor and miscellenious recorded growth of 42 percent and 90 percent respectively. The company expects to reach Rs 3 billion turnover by the end of this year, HNB Assurance Managing Director Manjula de Silva told Daily News Business.

The company recorded a 11 percent profitability growth recording Rs 49.3 million from the general insurance despite of the low interest environment which impacted negatively on the investment income. Among the factors that contributed for the positive growth were the overall improvement in the business climate and the increase in sales volumes. “We also carried out an upward revision in the premium rate which also contributed for the growth,” he said.