People’s Insurance posts 2,944 mn GWP in 2012

Indunil Hewage

People’s Insurance Limited has recorded a staggering 22% increase in Gross Written Premium (GWP) from Rs. 2,415 million to Rs. 2,944 million in 2012, which is above the growth rate of general insurance industry estimated at 20%.

People’s Insurance Limited has been in operation over the last three years in Sri Lanka and within one year of commencing operations, the company was able to record Rs. 933 million in GWP while GWP exceeded Rs1 billion in June 2011.

People’s Insurance became the first insurer to reach Rs. 1 billion within first 18 months of its operations, while recording a Rs. 2.4 billion GWP and generating a profit after tax of Rs. 72 million for the year ended December 31, 2011.

Commenting on the company’s financial performance in 2012, Chairman of People’s Insurance Limited, Jehan P Amaratunga said, “the company posted impressive performance in 2012 and the result shows company’s strong fundamentals and cutting edge strategy to propel itself at the forefront of the insurance industry. Further, company posted underwriting profit of Rs. 42 million in 2012 while Profit After Tax (PAT) increased significantly by Rs.163 million during the same year. Amaratunga said, “Though the insurance industry is still growing, it is not greatly penetrated. We are planning on entering into our next phase of growth whilst expanding our products and services as well as our presence across the country. People’s Insurance Limited Managing Director A P Kumarage said, “Local finance and leasing industry has experienced a bad period during the last year due to various issues. This year, we are expecting an annual growth rate of 15% to 20% in the leasing industry. According to Kumarage, Sri Lanka has around 72 finance companies and their contribution to the GDP is about 3-4%.