ECONOMYNEXT – Profits at Sri Lanka’s Asian Alliance Insurance in the December 2015 quarter rose 154 percent to 565 million rupees from a year ago, according to unaudited results filed with the stock exchange.
Gross written premium rose 27 percent to 1.6 billion rupees, with net premium up 31 percent to 1.4 billion rupees. Claims rose 11 percent to 484 million rupees.
Earnings per share for the December 2015 quarter were1.51 rupees. EPS the year before had been 5.94 rupees.
In July 2015, Asian Alliance Insurance shareholders approved a one for 10 share split, increasing ordinary shares in issue from 37,500,000 to 375,000,000 ordinary shares.
Asian Alliance Insurance is now a life insurance company with Asian Alliance General Insurance Limited a licensed general insurance firm fully owned by Asian Alliance Insurance.
Asian Alliance Insurance expanded its branch network spread across the island to 81 branches, in the 2015 financial year, adding four branches to its life network and eight branches to its general network.
In the year to December Asian Alliance Insurance group reported earnings per share of 2.47 rupees on total profits of 924 million rupees, up 22 percent from the year before.
Annual gross written premium rose 27 percent to six billion rupees, with net premium up 25 percent to 5.2 billion rupees. Claims rose 05 percent to 1.6 billion rupees.
“Total GWP has grown at a compounded rate of 30 percent since the entry of Softlogic in September 2011, from a combined GWP of 1.6 billion rupees to 6.2 billion rupees in 2015,” Iftikar Ahamed, Asian Alliance Insurance PLC, Managing Director said.
A statement said the firm’s life insurance business is “orientated towards Sri Lanka’s fast-growing mass-affluent sector” and recorded average premium value of 86,000 rupees.
It said first and second year persistency of life policies were at 82 percent and 63 percent.
Asian Alliance Insurance’s annual finance income fell 12 percent to 725 million rupees and net fair value gains fell 76 percent to 84 million rupees although other operating income shot up 580 percent to 106 million rupees.
Group gross assets grew from 10.3 billion rupees to 11.5 billion rupees during 2015.
(Colombo/March08/2016)