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Friday June 21st, 2024

Softlogic Life Posts Rs26Bn GWP for FY2023

Ashok Pathirage Chairman of Softlogic Life Insurance PLC Iftikar Ahamed Managing Director of Softlogic Life Insurance PLC

Softlogic Life, recorded robust FY23 performance, posting Gross Written Premium (GWP) of Rs26.3 billion for the financial year ended 31st December 2023, with an increase in top-line growth of 14% versus the past year and compared to industry growth of 12%. 

The company has stood firmly with its policyholders in the face of challenging macroeconomic conditions with a firm commitment to continually improve customer benefits and this commitment is signified through their diligent claims and benefits payout during 2023 which is Rs13.5 billion compared to Rs9.1 billion in 2022.

During the period under review, Softlogic Life’s market share grew to 17.2% with the company ranked as the second-largest life insurer in the market having overtaken much older players to establish strong growth momentum. The company reported a 10-year GWP Compound Annual Growth Rate (CAGR) of 26% compared to the industry’s 10-year GWP CAGR growth of 14%. 

Softlogic Life notes that its contribution to increasing insurance penetration in the country has increased significantly with the company recording more than 700,000 active policies that have covered more than 1.3 million Sri Lankan lives. The Company stands at the pinnacle of its desired position leading the health insurance market share of 35%.

The company recorded an impressive Return on Equity (ROE) of 23%, whilst maintaining this performance and exceeding the 20% mark for the past five years. Profit after tax (PAT) for the year was Rs2.8 billion, and Profit before tax (PBT) stood at Rs3.2 billion. Total assets of the Company stood at Rs51.3 billion, while total equity was recorded at Rs13.3 billion with an impressive growth of 22.6%. Furthermore, financial investments of the company stood at Rs43.5 billion which is 84.8% of the total assets of the company. 

The company’s investment income recorded in 2023 stood at Rs7.9 billion which is an impressive growth of 55% compared to 2022 which also resulted in an increase in total net revenue up to Rs31. 8 billion which is a 25% growth compared to 2022. Softlogic Life’s stellar performance in 2023 underscores the company’s superior financial strength and resilience in navigating challenging macroeconomic conditions and maintaining a healthy Capital Adequacy Ratio (CAR) of 367% which is well above the regulatory requirement of 120%. 

Despite the intricacies and turbulence of the economic landscape, the 14% increase in top-line is in stark contrast to the negative growth of the economy and showcases Softlogic Life’s unwavering commitment to increasing value and delivering stability for its policyholders and all other stakeholders. 

The growth further demonstrates the company’s ability to weather economic challenges and reinforce its promise to prioritize the well-being and financial security of its policyholders, solidifying Softlogic Life’s position as a trusted and dependable life insurance partner.

Ashok Pathirage, Chairman of Softlogic Life Insurance PLC, stated, “In the face of a challenging business landscape, Softlogic Life has not only maintained but strengthened its position as the second-largest life insurance company in Sri Lanka with an increase in market share”. 

“These achievements are a testament to the effectiveness of the company’s strategic initiatives and the robust execution of those strategies. Softlogic Life is poised for continued success, and I am confident in the company’s ability to overcome challenges and seize opportunities in the dynamic landscape of the life insurance industry,” Pathirage said.

 Softlogic Life has been at the forefront of transforming the life insurance landscape in Sri Lanka. A pioneer in disruptive innovation and digitalization, the company has consistently sought to elevate the quality of life for Sri Lankans. 

Industry-first initiatives, including AI-powered one-day automated claims settlement, 1-minute hospitalization claim settlement, a 100% digitalized sales platform, automatic policy issuance, and mobile-based micro-products, exemplify our commitment to providing a superior customer experience. These innovations have set new industry standards and played a pivotal role in strengthening Softlogic Life’s competitive position. 

Softlogic Life’s success extends beyond operational excellence, with unprecedented success at the prestigious 58th CA Sri Lanka TAGS Annual Report Awards, Softlogic Life was placed overall second for the third consecutive year at the CMA Integrated Reporting Awards, and emerged as the Overall Winner.

 Softlogic Life Managing Director Iftikar Ahamed commenting on the performance noted that: “In a challenging year, Softlogic Life has not only weathered the storm but also emerged stronger, thanks to our forward-looking business strategies and customer-centric innovations. This growth is not just a numerical achievement but a reflection of our commitment to the financial well-being of our policyholders”. 

“As we navigate the complexities of the market, Softlogic Life remains steadfast in our commitment to serving and creating value for our policyholders, providing them with the security and support they need. We view these challenges as opportunities for growth and innovation. We have already had a great start to 2024 and I am confident that our resilient and proactive attitude will continue to drive the success of Softlogic Life,” Ahamed said.