Allianz Lanka Non Life business grows 38%

Allianz Lanka achieved growth in both in Life as well as in Non Life business. In the Non Life company the Gross Written Premium (GWP) grew by 38%, from Rs.1.5 billion to Rs.2.1 billion. The company was also successful in achieving operating profits of Rs 249 million, despite heavy investment on recruitment and expansion. Notwithstanding the highly competitive soft market, Allianz Lanka continued to make underwriting profits, of Rs 90 million during the year under review, a press release said.

It adds: The main strategic focus was on developing retail business. The company has a large portfolio of corporate business; hence, it changed its gear towards personnel line retail business in the year 2013 which has paid many Dividends. The company’s business composition in Non Life shifted this year, with Motor: non Motor business mix shifting to 24%: 76%. The heavy expansion and consequent infrastructure development costs reduced the return on equity from 29% to 22%. The company’s solvency margin stood at 2.3 times above the regulatory required minimum. Financial stability was also confirmed with the growth in net assets base by 12% from 780 million to 875 million.

‘In the Life company, the GWP grew by 56% from Rs.532 million to Rs.829 million and so was the first year premium by 64%. Investments grew substantially by 73%. The company was also successful in continuing to reduce the net loss by a further 32%. The solvency margin was 5.3 times higher than the regulatory minimum. As it takes a much longer time to turnaround the Life company to profitability, the company is well on track towards achieving this goal. The success in the investment strategy enabled the company to declare a dividend of 8% to policyholders.

‘This year, Allianz Life insurance added to its basket of Life products by introducing Unit Link, a policy that enables policyholders to decide on their investment based on their risk appetite, and grow their protection and investment by switching among designated funds.
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