HNBA Group records impressive third quarter performance
HNB Assurance PLC (HNBA) and its fully owned subsidiary HNB General Insurance Limited (HNBGI) reported a consolidated Gross Written Premium (GWP) of Rs. 11.3 billion marking a steady growth of 26 percent and a consolidated Profit After Tax (PAT) of Rs 1.5 billion marking a growth of 228 percent during the nine months ended 30th September 2022 compared to the comparative period last year.
Rose Cooray Chairperson of HNBA and HNBGI, expressed her views on the financial performance of the Group stating, “Despite of the negative impact caused by the economic turbulence of the country and the challenges faced, both companies have performed extremely well in terms of both topline and bottom line. Both HNBA and HNBGI were able to increase their respective market shares by growing well above the market averages.”
The Group PBT grew by 167 percent for the period reaching Rs 1.9billion compared to Rs 731.4million in the corresponding period last year. The key reason for the exceptional growth is the transfer of Rs 1.1 billion surplus from Life policyholders fund, subsequent to the valuation of the Life Fund as at 30th September 2022.
However, no surplus transfer from Life policyholders was made in 3Q 2021 as it was done in December 2021. These profits posted were after incurring Rs 4 billion as net Insurance benefits and claims to the policyholders in 2022, compared to Rs 2.9 billion in the corresponding period.
Sharing his views, Chief Executive Officer of HNBA Lasitha Wimalaratne stated, “I am happy to note that the resilience of our core business model has led to yield these remarkable results despite the challenges we had to face in the previous months.
While the business keeps retooling itself with tech transformations and keeping abreast of market trends, HNBA’S GWP increased by 32 percent achieving Rs. 6.6 billion. HNBA posted a PAT of Rs. 1.2 billion recording a 483 percent growth with the surplus transfer from the Life Fund.
The company’s Life Insurance Fund stands at Rs. 23.1 billion at the end of 3Q of 2022. Contributing to this momentum HNBA’S Capital Adequacy Ratio (CAR) stood at 283 percent”.
Commenting on these results, Chief Executive Officer of HNBGI Sithumina Jayasundara stated, “The company was able to maintain a sustainable financial growth in 2022 compared to 2021 and that he is confident with the solid business strategies in place, the business will continue to grow to greater heights.
Appreciating the dedication and efforts of both Strategic Business Units, Support Services and Operations Units, Jayasundara also stated that the business delivered a great performance during Q3 2022 recording a GWP of Rs.4.8 billion. Further reviewing the performance of the business, HNBGI recorded PAT of Rs.417.6 million compared to Rs.372.2 million last year. The company’s Capital Adequacy Ratio (CAR) stood at 266 percent well above the regulatory requirement”.