LOLC Group’s Insurance arm concludes FY 2022 on a high note

LOLC Group’s Insurance arm concluded the FY 2022 on a high note, recording its best -ever performance to-date. Consolidated Gross Written Premium (GWP) of LOLC General Insurance (motor and non-motor) for the year ended 31st December 2022 stood at Rs. 8.551 billion, reflecting a commendable 17 percent improvement over the previous financial year. 
LOLC Life and General together also accounted for a combined Profit After Tax (PAT) of Rs. 2,418 million. What is more remarkable is that these results come amidst the backdrop of a significant decline in industry-wide performance owing to severe external challenges throughout 2022. 

In the current financial year, LOLC General Insurance recorded a Profit before Tax (PBT) of Rs.1.65 billion, denoting a solid 30 percent increase year on year, along with a PAT of Rs. 1.40 billion representing 28 percent improvement over the figure reported for the previous financial year. The Total Comprehensive Income of the company recorded Rs. 449 million.  
Furthermore, with the company’s market share in the Motor segment edging up to 10 percent in the year 2022, LOLC General too moved up 2 spots in the industry league tables from 7th position in 2021 to claim 5th place in 2022.
Similarly, LOLC Life Assurance also soared ahead to deliver exceptional results and reach some important milestones in the current financial year. Reporting an overall Premium income growth of 12 percent year-on-year, the company was recognized as having the Highest New Business growth (FYP) in the industry at 31 percent, a monumental achievement given the severe challenges encountered during 2022. 
Meanwhile growing by 74 percent year-on-year, the PAT crossed the one billion mark for the first time in the company’s history. Backed by strong bottom line results, LOLC Life Assurance reported a Return on Equity (ROE) of 33 percent.  Moreover, with a 4 percent market share in GWP terms, LOLC Life moved up to the 7th spot in the industry rankings for 2022 from 8th position occupied in the previous financial year.

The formation of the Insurance arm, - Life and non-Life (General) operations in 2010 denotes a key milestone in LOLC’s strategic diversification agenda. A little over a decade on, LOLC life and general businesses have proven themselves as the most preferred insurance providers in the market.    
Over the past ten years, LOLC General has recorded a number of milestones, most notably the listing on the Colombo Stock Exchange in December 2021. The unveiling of the ‘Honours’ loyalty programme in October 2022 marks another important milestone for LOLC General. The first ever cash back scheme to be launched by a local insurer, the ‘Honours’ programme enables customers to benefit from merchant discounts, while accumulating loyalty points that can be utilised to offset the cost of their future 
insurance premiums.

The recent growth acceleration in LOLC’s Life and General business has been supported by the expansion in the island-wide branch network. The branch network which until end-2021 stood at 59 was expanded in 2022 with 23 new branches being added within the course of the year. As part of the overall expansion strategy, both companies have also started investing heavily in digital technology. These investments are expected to facilitate end-to-end system transformation that would see the entire insurance process from customer acquisition, due diligence and policy issuance to claim settlement, managed digitally.