Ceylinco Life posts impressive 9-month results

Ceylinco Life has posted robust income and profit growth for the nine months ending September 30, 2019, continuing the company’s sector-leading performance into the third quarter of the year.

The life insurance leader has reported net income of Rs.22.8 billion for the period, an improvement of 10.4 per cent over the first nine months of 2018, with net premium income growing by 5.5 per cent to Rs. 13.3 billion and investment income up by 18 per cent to Rs.9.1 billion.

Profit before tax surged by an impressive 54.8 per cent to Rs.5.8 billion for the nine months reviewed, the company announced in a public statement.

Profit after tax grew by a healthy, albeit lower, rate of 36.8 per cent to Rs.4.5 billion, with the lower rate of growth attributed to higher provisions made by the company for income tax due to a change in the basis of income tax computation under the new tax regime.

Basic earnings per share for the nine months improved by Rs.24.19 to Rs.89.92.

“These figures represent a forceful performance in terms of life insurance sales and management of investments during a period of economic uncertainty and political upheaval, to which businesses like life insurance are especially vulnerable,” Ceylinco Life Managing Director Thushara Ranasinghe said. “Our ability to generate solid results during such times is a tribute to the company’s capability to remain focussed on, and steadfast to its mission, even in times of challenge and distraction.”

Ceylinco Life’s Life Fund grew by 4.8 per cent to Rs. 92.3 billion as at September 30, after a cumulative transfer of Rs.3.3 billion to shareholder funds in the nine months under review.

The company paid Rs.8 billion in net claims and benefits to policyholders, which reflects an increase of 12.4 per cent over the corresponding period of 2018.

Total assets of Ceylinco Life increased by Rs. 22.5 billion or 19 per cent since 31st December 2018 to Rs. 140.5 billion as at September 30.

Ceylinco Life ended 2018 with total assets worth Rs.118 billion, total income of Rs.28.7 billion, premium income of Rs.17.8 billion, a Life Fund of Rs. 88 billion, an investment portfolio with a value in excess of Rs.103.7 billion and net profit of Rs.5.79 billion.

“The market leader in Sri Lanka’s life insurance industry for 15 of the 31 years it has been in operation, Ceylinco Life has close to a million lives covered by active policies and is acknowledged as a benchmark in the local insurance industry for innovation, product research and development, customer service, professional development and corporate social responsibility,” the statement said.