HNB Assurance posts 24% growth

HNB Assurance PLC has posted a strong growth in turnover of 24% for the year ended 31st December 2011 generating a turnover of Rs. 3 billion as measured in terms of Gross Written Premium (GWP).

Its General Insurance Premium income grew by 27% to reach Rs. 1.71 billion while Life Insurance Premium income grew by 19% to record Rs. 1.29 billion. These growth rates are significantly higher than the rates achieved over the last two years indicating a significant acceleration in business growth.

The Company was also able to achieve satisfactory rates of growth in profitability in spite of having to contend with an adverse investment climate. Its profit before tax grew by 11% to reach Rs. 300 Mn while the profit after tax increased by 14% to register Rs. 275 Mn.

The Company was able to offset the negative impact of a decline in Investment Income by improving its underwriting results from General Insurance. ‘The most satisfying achievement in the year 2011 has been the significant reduction in the combined Ratio from 107% to 103% which was essential to maintain a growth in profitability in the midst of low interest rates and a sharply falling sharemarket’ states Manjula de Silva, Managing Director, HNB Assurance PLC. This enabled the company to declare an attractive dividend of Rs. 2.10 per share on an increased base of 50 Million shares.

The growth in dividend payment has been a phenomenal 56% which de Silva attributes to the Company’s wish to offer a special reward to its share- holders at the end of its tenth year of operations.

Similarly, HNB Assurance’s life policyholders are also in line to receive a special tenth year reward in the form of a loyalty bonus.