Sri Lanka HNB Assurance March net down 83-pct

ECONOMYNEXT – Profits at Sri Lanka’s listed HNB Assurance fell 83 percent from a year earlier to 119 million rupees in the March 2019 quarter on rising costs, claims and benefits payouts and higher transfers to the life fund, interim results showed.

Earnings amounted to 2.38 rupees a share, according to interim financial statements filed with Colombo’s stock exchange. The share was trading 3 rupees lower on Thursday at 114.90 rupees.

In the March quarter, net written premiums after re-insurance costs grew 15 percent to 2 billion rupees.

Gross written premiums in the general insurance business grew 12 percent to 1.26 billion rupees and life insurance premiums grew a faster 17 percent to 1.23 billion rupees in the quarter.

Net investment income grew 10 percent to 569 million rupees.

Claims and benefits paid increased by 45 percent to 937.6 million rupee while underwriting and acquisition costs rose 4 percent to 304 million rupees.

Transfers to the life insurance fund grew 31 percent to 691.6 million rupees.

Operating and administrative expenses were steady at 486.5 million rupees while finance costs surged 141 percent to 27.8 million rupees.

HNB Assurance’s life insurance contracts grew 6 percent from end-December 2018 to 13 billion rupees and general insurance contracts rose 8 percent in the same period to 2.7 billion rupees.

Total assets had grown 7 percent to 23.8 billion rupees.

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Listed Hatton National Bank was the main shareholder with a 59.99 percent stake. (COLOMBO, 9 May 2019-SB)

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