Ceylinco Life’s net profit surges 95% to Rs.6bn
Ceylinco Life has posted net profit of Rs.6 billion for the year ending December 31, 2017, while reaffirming its market leadership in Sri Lanka’s life insurance industry for the 14th successive year, with premium income of Rs.15.7 billion.
The company posted profit before tax of Rs.6.3 billion reflecting a remarkable 70 percent growth. Net profit growth was even higher, at 95 percent.
Total income, comprising of premium income and investment and other income, grew to Rs.25.6 billion.
Investment and other income improved by 17 percent to Rs.10.3 billion in the 12 months reviewed, reflecting the success of the investment strategies deployed by the company. Ceylinco Life’s investment portfolio grew by 10.8 percent to Rs.89.5 billion as at December 31, 2017.
“These figures once again demonstrate the importance of concentrating on the core elements of the business: selling the most appropriate and effective life insurance products and prudent management of investments in the interest of all stakeholders,” Ceylinco Life Managing Director/ceo R. Renganathan said.
“We have always emphasised that life insurance is a relationship for life and the commitment this demands is the foundation of our continuing leadership in the sector.”
Ceylinco Life Director/deputy CEO Thushara Ranasinghe said, “Our policyholders know that profit is not the sole objective of the company. Ceylinco Life has the most generous policyholder rewards programme in the industry and our commitments to community welfare are substantial and long term. In that context, our financial performance assumes even greater significance because it is not detrimental to any stakeholders.”
Ceylinco Life sold 126,838 new life policies in the year reviewed at an average of 10,570 per month and paid out Rs.6.7 billion in net claims and benefits to policyholders.
The company’s Life Fund recorded growth of 9.3 percent to reach Rs.85.1 billion at end2017, following a transfer of Rs.7.3 billion to the fund after the final shareholder transfer.
Total assets grew by a noteworthy 9.9 percent to Rs.106 billion in 2017 and the company’s net assets value per share stood at Rs.343.81 at the end of the year, an improvement of Rs.105.61 or 44.3 percent. Earnings per share for the review period totalled Rs.120, an increase of Rs.59 or 95 percent.