15 August 2024 12:08 am Views - 52
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Ashok Pathirage Iftikar Ahamed |
Softlogic Life recorded another quarter of solid financial performance with a Gross Written Premium (GWP) of Rs. 14.5 billion for the first six months ending 30 June (2QFY24), with an increase in top-line growth of 17 percent compared to the corresponding period last year.
Profit after tax (PAT) for the period in review rose to Rs. 2.1billion, compared to Rs. 1 billion in first half last year. This is an increase of 104 percent YoY and Profit before tax (PBT) also grew by 91 percent compared to the same period last year to stand at Rs. 2.9 billion.
The company’s total assets stood at Rs. 55.1 billion, while total equity was recorded at Rs. 14.4 billion. Furthermore, the company’s financial investments stood at Rs. 47 billion which is 85 percent of the total assets of the company.
The company recorded a Return on Equity (ROE) of 23.5 percent while continuing to maintain a Capital Adequacy Ratio (CAR) of 367 percent as at Dec 2023, in comparison to the regulatory requirement of 120 percent.
Additionally, the company paid out claims and benefits of Rs 6.8 billionto its policyholders during first half of this year continuing fromthe substantial Rs. 3.4 billion claims paid during the last quarter, demonstrating its fullest commitment towards upholding Softlogic Life’s promise to its policyholders.
The company reported a 10-year Compound Annual Growth Rate (CAGR) of 26 percent of GWP, compared to the industry’s 10-year GWP CAGR growth of 14 percent. With around seven hundred and fifty thousandactive policies outstanding as at 30th June 2024, Softlogic Life continues to insure more than 1.5 million Sri Lankan lives, actively contributing towards increasing Sri Lanka’s insurance penetration.
Commenting on the financial performance of the company, Chairman Ashok Pathirage stated, “In the face of a number of obstacles and a challenging business environment, we have achieved good growth, solidifying our status as the second-largest life insurance provider in Sri Lanka with top-line growth of 17 percent by the end of Q2 2024.
This success is a testament to our resilient strategies and unwavering commitment to excellence, allowing us to navigate numerous obstacles and continue delivering value to our stakeholders.”
During the same quarter, the company announced a Rs. 6 billion share buyback at Rs. 102.40 per share for up to 58,593,750 shares of the current 375,000,000 shares in issue. Managing Director Iftikar Ahamed commented, “As we navigate the evolving business landscape, Softlogic Life remains steadfast in our commitment to being the best in all aspects of our business and delivering premium value to our policyholders and other stakeholders.
We see the future as an exciting phase with the advent of technology, especially AI, that is expected to hugely influence business strategy and the way insurance works. We are committed to exploring all ways and means by which we can improve and enhance our services to protect all Sri Lankans. We are looking to a strong 2024 on the back of a momentous first half of the year.”