Ceylinco Life reports Rs 17.1 b gross income in 1H | Sunday Observer

Ceylinco Life reports Rs 17.1 b gross income in 1H

R. Renganathan-Thushara Ranasinghe
R. Renganathan-Thushara Ranasinghe

Ceylinco Life has reported gross income of Rs 17.1 billion for the first half of 2020, an improvement of 14.9 per cent over the corresponding period of last year.

Gross written premium (GWP) and investments and other income contributed to top line growth in the six months ending June 30, 2020, increasing by 13 per cent to Rs. 9.9 billion and by 17.4 per cent to Rs 7.2 billion, a media release from the Company stated.

Ceylinco Life paid Rs 5.9 billion in net claims and benefits to policyholders in the period under review – an increase of 17.8 per cent over the first half of 2019, transferred Rs 4.4 billion to its Life Fund, and made a transfer of Rs 1.95 billion to the shareholder fund, growing the latter by 9.2 per cent to Rs 34.4 billion.

Consequently, profit before tax was recorded at Rs 3.5 billion for the six months, reflecting a decline of 6.7 per cent over the first half of 2019, while profit after tax reduced by 4.6 per cent to Rs 2.7 billion.

The Company’s Life Fund achieved a milestone in the second quarter of the year, surpassing Rs 100 billion at Rs 101.6 billion as at June 30, 2020, and becoming the fastest life fund to reach Rs 100 billion in Sri Lanka’s life insurance sector. “The second quarter of the year was a period of turbulence for most businesses worldwide as a result of the impact of the Covid-19 pandemic, and profit growth was predictably affected,” Ceylinco Life Managing Director Thushara Ranasinghe said.

“We expect the effects of the pandemic to continue to exert pressure on the Company’s performance in the quarters ahead, but remain confident that Ceylinco Life has the inherent financial strength and stability as well as the managerial prowess to minimise the adverse impacts and provide our policyholders and shareholders the best returns possible in the conditions that prevail,” he said.

Total assets of Ceylinco Life grew by Rs 24.6 billion or 18.5 per cent since December 31, 2019 to Rs 157.8 billion as at June 30, 2020, while the Company’s investment portfolio increased by Rs 23.4 billion or 20 per cent over the six months to reach Rs 140.3 billion at the end of the first half of the year.

Ceylinco Life ended 2019 with consolidated income of Rs 32.1 billion for the financial year, reflecting top line growth of 9.9 per cent. The Company reported gross written premium income of Rs 18.7 billion.