5 August 2024 01:40 am Views - 192
By Nishel Fernando
Sri Lanka’s insurance industry posted mixed performances in the first quarter of the year despite achieving 7.39 percent Year-on-Year (YoY) or Rs.5.41 billion growth in terms of overall Gross Written Premium (GWP) for the quarter, data from the Insurance Regulatory Commission of Sri Lanka (IRCSL) showed.
The GWP for both Long-Term and General Insurance Businesses reached Rs.78.59 billion from Rs.73.12 billion a year ago. However, the GWP declined from Rs.128.16 billion recorded in the previous quarter.
The Long-Term Insurance Business grew by 19.26 percent YoY to Rs.40.23 billion in the quarter from Rs.33.73 billion overtaking the General Insurance Businesses.
Meanwhile, the General Insurance Business contracted by 2.75 percent YoY to Rs.38.36 billion from Rs.39.44 billion a year ago. In the period, GWP of all key categories including motor, fire and marine declined with health remaining as the outlier.
The claims incurred by both the Long-Term Insurance Business and General Insurance Business declined by 6.97 percent YoY to Rs.32.38 billion.
Long-Term Insurance claims, including maturity and death benefits, declined by 4.65 percent YoY Rs. 18.32 billion from Rs.19.13 billion a year ago.
The claims incurred in the General Insurance Business, including Motor, Fire, Marine and other categories, declined by 9.84 percent YoY to Rs. 14.06 billion from Rs. 15.6 billion a year ago.
The value of total assets held by insurance companies rose by 10.88 percent YoY to Rs.1.1 trillion in the quarter driven by 18.54 percent YoY growth in assets of the Long-Term Insurance Business despite a 7.17 percent YoY decline in assets of the General Insurance Business.
The IRCSL stated that Capital Levels for the Life Insurance business had increased by 11 percent while General Insurance business depicts a decrease of 16 percent. It noted that one life insurance company has not complied with the RBC minimum requirements
The Profit Before Tax (PBT) in both Long-Term Insurance Business and General Insurance Business grew by 35.06 percent YoY to Rs.12.33 billion. The PBT of Long-Term Insurance Business rose by 4.37 percent YoY to Rs.6.65 billion while General Insurance Business more than doubled its PBT to Rs.5.67 billion.
The country had 29 insurance companies (Insurers) in operation at the end of the year’s first quarter, 15 companies were engaged in Long-Term (Life) Insurance Business, 13 companies were engaged in General Insurance Business and one company functioned as a composite company.
In addition, there were 78 insurance brokering companies registered with the Commission. Total Assets of insurance brokering companies were up by nearly 28 percent to Rs.13.24 billion in the period.