Sri Lanka’s pioneering Takaful insurance solutions provider, Amana Takaful PLC group was able to cut its net losses to Rs.30.3 million with a loss per share of 2 cents for the quarter ended March 31, 2016 (1Q16) from a net loss of Rs. 50.9 million amid its subsidiaries have made profits, the interim results showed. 
The group which made a net profit of Rs.439.9 million in the December quarter turned a loss due to hefty finance costs, increase in claims and benefits paid. 
The segmental breakdown of profit before tax showed the group’s general insurance business making a loss of Rs.36.6 million, increasing from Rs.34.8 million a year ago. 
But the shareholder’s fund under the fully owned Amana Takaful Life Limited (ATLT) has made a profit of Rs. 2 million against a loss of Rs.9.1 million a year ago. 
The group segregated its life insurance business on January 01, 2015 by setting up a fully owned subsidiary ATLT and funded the unit through a rights issue, which raised Rs.400 million in late 2014 in compliance with the regulator’s rule. 
The company releasing a statement last week said it recorded a gross written premium (GWP) of Rs.928 million for the financial year ended December 31, 2015 marking a 35 percent growth year-on-year (yoy) which outperformed the industry growth of 20 percent. 
The company has also made a profit of Rs.18 million for the full year, the statement added. 
Meanwhile, the GWP of the group rose by 18 percent yoy to Rs. 936.6 million. The non-life (general) insurance GWPs grew by 21 percent yoy to Rs. 734.7 million while the long-term insurance (life) GWPs grew by 11 percent yoy to Rs. 201.9 million. 
Motor insurance accounted for one-third of non-life GWPs but the premiums declined by 3 percent yoy to Rs. 240.6 million. 
Investment income of the group increased by 68 percent yoy to Rs.35.5 million. 
Fair value gains from available-for-sale (AFS) investments recognized under the income statement has swelled by 184 percent yoy to Rs.7.2 million. Meanwhile there was also a Rs.4.5 million loss under the comprehensive section of the income statement for AFS investments. 
The group paid claims and benefits of Rs. 339.5 million, up 15 percent yoy. 
Operating and administration expenses rose by 6 percent yoy to Rs. 220.9 million. 
The group finance cost jumped 566 percent yoy to Rs.4.8 million. 
The group accounted an income tax of Rs. 6.1 million in comparison to Rs.2.5 million for the corresponding quarter in 2015. 
The foreign currency translation loss of the group’s foreign operations for the period was Rs.535,476 against a gain of Rs.5.5 million a year ago. This is accounted against the equity. 
The group has operations in Maldives through Amana Takaful Maldives PLC. 
As of March 31, 2016 Amana Holdings Limited held 60.44 percent stake in the group followed by Amana Bank Limited and Expolanka Holdings PLC with 15.26 percent and 5.27 percent each.