Aviva NDB records Rs 9.3 bn consolidated revenue as at Q3
Aviva NDB Insurance recorded consolidated revenue of Rs 9,317 million
in the first 9 months of 2012 ending September 30.
This was a 7 % drop compared to the previous corresponding period as
a result of a decline in sales volumes of investment linked Life
products combined with prudent General Insurance pricing. Composite
Gross Written Premium income for the period was Rs 6,608 million while
Life GWP amounted to Rs 4,788 million.
Conventional products contributed 60 % to Life GWP recording a growth
of 4 % over last year. GI GWP was Rs 1,820 million, a negative growth of
15 % compared to the same period in 2011 as the business continued to
focus on improved underwriting.
Focus on quality over the last two years has resulted in an
improvement in the loss ratio reported by the GI business which in turn
has led to an overall improvement of the combined operating ratio.
The company recorded an investment income of Rs 3 billion during the
period under review in comparison with Rs 2.1 billion for the
corresponding period in 2011. Increase in income was mainly contributed
by fixed income securities.
The company's consolidated profit after tax was Rs 266 million. This
was a commendable increase of Rs 56 million compared to the
corresponding period in the previous year.
The surplus from the long-term insurance business is not included as
this is determined annually after the year-end actuarial valuation and
will be included in the full year results ending December 2012.
The interim financial statements for Q3 of 2012 were prepared on Sri
Lanka Financial Reporting Standards (SLFRS) compliant basis with AVIVA
NDB becoming the first insurer to do so starting with first quarter
Shah Rouf, Managing Director of AVIVA NDB Insurance expressed
confidence in the strategies in place for balanced growth of the
business and satisfactory performance and said "We look forward to
sustainable profitable growth with AIA, who subject to completion will
become our major shareholders this year.
I am confident that we will deliver satisfactory results for 2012
maintaining the momentum that has attracted Asia's leading life insurer
to invest in our Company.
Chairman, AVIVA NDB, T.R. Ramachandran said "The considerable
strengths of our business will be enhanced by the pan-Asian experience
of AIA, as will our continued contribution to the development of the
insurance sector in Sri Lanka.