Co-operative Insurance records strong 31% growth for 2022 first quarter

Leading Sri Lankan insurer Co-operative Insurance Company PLC (CICPLC) recently released its latest results for the first quarter of 2022, placing itself on a stronger position with an impressive growth of 31 percent compared to the same period of the previous year, amidst many macroeconomic difficulties.

During 1Q22, the company recorded a net written premium growth of over 35 percent, along with a market share growth of over fivepercent compared to the previous year’s first quarter, ranking it among the highest growing companies in the industry.

The company also recorded an increase in investments and is equipped with a strengthened asset portfolio, recording total assets growth by 21 percent.

“During the first quarter of this year, we proved our commitment to all of our stakeholders with unstoppable growth, diversification, sustainability, and the retention of customer loyalty. We achieved a much stronger performance, all while the entire industry faced instability with unavoidable lockdowns and economic instabilities, and there is no doubt that this momentum will be carried forward to oncoming quarters, and years,” notes Co-operative Insurance Chairman Susil Weerasekara.

Demonstrating its improved and strengthened financial position, Co-operative Insurance shared the growth with shareholders through a total dividend payout of Rs.280mnin the previous year. Earnings Per Share (EPS) is up at Rs.0.54 compared to the previous year’s Rs.0.48.

Consolidated Group profit grew by 16.5 percent in 2021 to Rs.810 million, surpassing Rs.695 million from the year before. This growth is a culmination of the 301 percent profit hike recorded by Cooplife, as well as the Profit After Tax (PAT) of Rs.631 million gained by CICPLC.

Forthe financial year which ended on December 31, 2021, the company was able to record an impressive 2.7 percent increase in its gross written premium (GWP), along with 3.5 percent increase in its net earned premiums, while settling claims totaling over Rs.2.4 billion during this period.

The company fared well in the General Insurance space with 41.6 percent increase in premium income for Non Motor, along with 8.5 percent GWP increase in Life Insurance, proving the company’s flexibility to adapt to diverse market conditions, despite Motor traditionally being the company’s largest segment.

According to Co-operative Insurance Managing Director Udaya Kumara, “this positive growth trajectory was achieved despite the weakening of the country’s entire general insurance industry, which was a result of reduced revenue during lockdowns and due to a weakening in people’s purchasing power, as well as strategic transformations within the company.”

The company also further enhanced its rural outreach island wide, accommodating new and existing customers with the introduction of third-party insurance counters in its branches.

Moreover, highlighting its financial sustainability, the company also stands out as one of the very few insurance providers to achieve an underwriting profit- a result of the healthy balance between the premiums earned, expenses and claim disbursement.

On the cost front, while the company has a minute reduction in staff over the financial year, it has been able to maintain top and bottom-line growth, showcasing greater efficiency and the ability to sustain quality growth, while applying prudent cost controls- in response to the prevailing situation in the country.