AVIVA NDB records Rs. 3 b consolidated revenue in Q1 2012
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Managing Director,
Shaf Rouf |
Managing Director,
T. R. Ramachnadran |
The unaudited financial results of AVIVA NDB Insurance presented for
the three months ending March 31, 2012 recorded consolidated revenue
amounting to Rs. 3 billion. Total Life sales in Gross Written Premium (GWP)
terms were an encouraging Rs. 1,615 million. Continued decline in equity
market conditions were offset by higher interest rates in bonds
resulting in only a relatively small decline in sales volumes of
investment linked products. There was increased entry into the
investment linked Secure Fund (bonds) both from new business as well as
switching from the other two fund options of Balanced (mix of bonds and
equity) and Growth (predominantly equity).
Traditional products which are also entirely bond invested, recorded
a growth of 4% compared to the previous year.
Shah Rouf, Managing Director of AVIVA NDB said, “As well as the
obvious move to security bonds represent, we are seeing customers who
are positioning themselves in our investment linked funds to take
advantage of the current relatively high interest rates while being in a
position to move towards equity. It’s a level of awareness that’s
encouraging, given the strong fundamentals of the Sri Lankan economy to
deliver long term growth.”
“It’s not all about investments and the rapid penetration of our
health insurance product in our overall portfolio reflects the family
protection priorities of our customers.”
General insurance reported a Gross Written Premium (GWP) of Rs. 674
million and a continuing focus on quality business and underwriting as
reflected by the decline in claims ratio to 65.8% from 74.3% at Q1 2011.
The Group reported unaudited consolidated profit after tax figure of
Rs 63 million for Q1 2012. On a like for like basis, excluding a
significant contribution from one-off equity gains previous year, this
represents an improvement of Rs 16 million over Q1 2011.
As is usual, profit after tax for the quarter excludes the surplus
from the Life insurance business which is determined annually after the
actuarial valuation and will be included in the audited accounts at
financial year end in December 2012. |