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.
www.island.lk

HDFC Bank’s PAT grows 320%

HDFC Bank’s CEO/GM, Nimal J B Mamaduwa stated that the Bank recorded a profit before tax of Rs. 306.9 Mn in 2013 as against Rs. 125.8 Mn in the year 2012.  (subject to finalizing of audit).  The profit after tax had been Rs. 233.5 Mn as against Rs. 55.5 Mn in the previous year which is an increase of almost 320%.

‘During the year 2013 HDFC Bank was able to change it’s traditional business model and introduced a number of new short term lending products that has widened the scope of their portfolio and opened up new growing revenues streams for the Bank.  These new product segments include Micro Finance, SME Loans, Education Loans and Leasing.  This range of new products has placed HDFC Bank in a highly competitive footing with other Banks with a more resilient portfolio and much wider field of operations. The micro credit and SME credit lines have effectively leverage HDFC’s past experience in working with rural and urban populations, a press release said.

‘The Bank’s Interest Income has grown up from Rs. 3.528 Bn in 2013 from 2.634 Bn which is an increase of Rs. 34%.  The Net Interest Income had gone up from Rs. 829.4 Bn to Rs. 1.058 Bn an increase of 28%.  The Banks loan portfolio has risen from Rs. 15.9 Bn to Rs. 19.7 Bn an increase of 23.7% as against the previous year. The deposit base in the year 2013 has grown up to 18.9 Bn as against Rs. 14.6 Bn an increase of 28.7%.

‘The Return on Assets (ROA) stood at 1.62% during the period under review as against 0.86% in the previous year and Return on Equity (ROE) increased from 2.32%to 8.90%.

‘HDFC Bank continued to support Government development initiatives in 2013. The Bank collaborated closely with the Ministry of Construction, Engineering Services, Housing and Common Amenities to implement the "Janasevena" Scheme aimed at low and middle income sector and government servants. Under this scheme the loans are provided at the concessionary rate of 13% per annum and have a ceiling of Rs. 500,000 per person. Another such programme is the Central Bank of Sri Lanka’s refinance scheme to rebuild damaged housing in North and East during war time.

‘HDFC Bank met the capital adequacy requirements stipulated by the Central Bank of Sri Lanka in 2013. As at 31st December 2013, Tier 1 and Tier 2 capital stood at 16.52% and 17.08% as against the 5% and 10% regulatory requirement. The Bank also maintains a healthy Statutory Liquid Assets Ratio of 28.74% as against the regulatory requirement of 20%. 

‘The noteworthy development in 2013 was the Bank’s first highly successful listed Debenture that raised Rs. 2 Billion which was oversubscribed to the value of Rs 4 Bn on the opening day itself which is an affirmation of the HDFC Brand equity.  The Bank’s objective for the Debenture was to raise long term funds and manage the assets and liability gap and utilize same for the lending.www.island.lk

Sri Lanka stocks at over 1-week low; foreign investors buy

(Reuters) - Sri Lanka shares fell for a fourth straight session on Thursday to a more than one-week low in thin trade as concerns over a proposed United Nations resolution, which could have an impact on the country's economy, hit sentiment, brokers said.

The main stock index fell 0.33 percent, or 19.58 points to 5,913.94, its lowest close since March 3.

The day's turnover was 336.5 million rupees, nearly a third of this year's daily average of about 953.9 million rupees.

Analysts said most investors were waiting for direction ahead of voting on the UN resolution later this month and to assess the impact it may have on Sri Lanka's economy and risky assets.

Shares of Ceylon Tobacco Company PLC fell 2.52 percent to 1,111.30 rupees, while those of top conglomerate John Keels Holdings Plc fell 0.76 percent to 222.80 rupees.

Foreign investors bought a net 8.9 million rupees ($68,100) worth of shares on Thursday, extending the net foreign inflow during the last seven sessions to 245 million rupees.

However, Sri Lanka has seen net selling in stocks worth 5.19 billion rupees in the last 24 sessions as some offshore funds exited, while net outflows so far in 2014 stand at 3.8 billion rupees, after net inflows of 22.88 billion rupees last year.

Sri Lanka last week hit back at a report by the U.N. human rights chief, questioning the independence of the human rights office of the United Nations after the United States asked it to investigate violations by the Sri Lanka government. 

($1 = 130.6000 Sri Lanka Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anupama Dwivedi)

Sri Lanka stocks close down 0.3-pct, rupee weaker

Mar 13, 2014 (LBO) - Sri Lanka's stocks close lower for the fourth consecutive day with tobacco and diversified stocks losing ground and the rupee weakened amid stronger import demand, brokers and dealers said.

The Colombo benchmark All Share Price Index closed 19.58 points lower at 5,913.94 down 0.33 percent. The S&P SL20 closed 14.16 points lower at 3,222.13, down 0.44 percent.

Turnover was 336.48 million rupees, down from 408.01 million rupees a day earlier with 74 stocks close positive against 84 negative.

In forex markets the rupee weakened to around 130.65/70 rupees to the US dollar in spot market after opening at around 130.60 levels amid stronger import demand, dealers said.

In equity markets Softlogic Holdings closed 1.00 rupee higher at 11.00 rupees with an off market transaction of 108.90 million rupees contributing to 32 percent of the turnover.

Asiri Surgical closed 90 cents higher at 14.00 rupees and Nation Lanka Finance closed 50 cents higher at 8.70 rupees, attracting most number of trades during the day.

Foreign investors bought 183.15 million rupees worth shares while selling 174.25 million rupees of shares.

Ceylon Tobacco Company closed 28.70 rupees lower at 1,111.30 rupees and John Keells Holdings closed 1.70 rupees lower at 222.80 rupees, contributing most to the index drop.

JKH’s W0022 warrants closed 30 cents lower at 61.80 rupees and its W0023 warrants closed 80 cents lower at 65.00 rupees.

Commercial Leasing and Finance closed 10 cents lower at 3.80 rupees and HNB closed 1.80 rupees lower at 151.20 rupees.

NDB Capital Holdings closed 43.60 rupees lower at 490.00 rupees and Ceylinco Insurance closed 47.30 rupees higher at 1,350.00 rupees.

C T Holdings closed 4.90 rupees higher at 135.00 rupees.

Nestle Lanka closed 10 cents lower at 1,999.90 rupees and Bukit Darah closed 5.10 rupees lower at 545.00 rupees.

SLT closed flat at 44.00 rupees and Dialog Axiata also closed flat at 9.00 rupees.

Sri Lanka's CTC eyes e-cigarettes as fears over kids rise

Mar 13, 2014 (LBO) - Sri Lanka's Ceylon Tobacco Company, a unit of British American Tobacco said it was eyeing e-cigarettes as fears are rising in many countries of children being drawn into smoking through the product.

Chief executive Felicio Ferraz told shareholders in the annual report that BAT had bought CN Creative Limited, an e-cigarette technology firm and set up a company called Nicoventures Limited to "commercialise licensed inhaled nicotine products."

"These products are already in markets like the United Kingdom and from 2014 the Group will start to cascade its seeding strategy over key markets," he said.

"We will bid to be one of those markets given the context of pricing and the constraints that we face here."

E-cigarettes are battery powered devices the deliver a vapour containing nicotine - the addictive drug in tobacco - without most of the deadly cancer causing chemicals found in cigarette smoke that kill users with cancer and heart attacks or cause other diseases.

E-cigarettes were originally marketed as an aid to quit smoking but with tobacco firms buying up e-cigarette makers fears are growing.

One concern is that fruit and candy flavoured e-cigarettes which are targeted at children.

Several countries including, Luxembourg, Malta, Slovenia and Lithuania have banned e-cigarettes wherever tobacco smoking is banned.

Last week Los Angeles passed a law to ban the product where smoking is banned.

"I am most concerned about kids," city lawmaker Paul Koretz, co-sponsor of the ban was quoted as saying by AFP, a news agency.

"We all know this is being marketed to kids, getting some kids who don't smoke tobacco to start."

Some states, including Italy and France, have already outlawed sales to minors.

A recent study published in JAMA Pediatrics, a journal of the American Medical Association said e-cigarette use is growing among young people.

Just over three percent of US adolescents had ever tried an e-cigarette in 2011, and that more than doubled to 6.5 percent in 2012

Youths who had tried e-cigarettes were more likely to experiment with conventional cigarettes, and were more likely to be current cigarette smokers than kids who had not tried them, said the study.

The US Food and Drug Administration is studying the product to determine whether it should be regulated.

But it may take years for effects to be seen, experts say.

"Safer does not mean safe," said the LA County's public health director Dr. Jonathan Fielding had said.

"Although they are less harmful than traditional cigarettes, some e-cigarettes contains some health risks."

He added that e-cigarettes have grown into a "$1.5 billion industry that has caught the attention of big tobacco which historically has had scant regard for public health."

FDA rules of graphic labels and advertising in the US have also been delayed for several years after five tobacco firms went to court.

In Sri Lanka, CTC has also gone to court over proposed labels.

Cigarette smoking has been in long-term decline in Sri Lanka due to regulation, an active anti-tobacco lobby as well as high taxes.

Last year volumes at CTC dropped 6 percent, chairman Susantha Ratnayake told shareholders.

Ferraz said consumption of 'beedi' a low end cigarette made by cottage industries which do have the same taxes and are much cheaper has gone up in 2013 reversing a decline seen over a decade.

Sri Lanka Telecom launches cloud computing service

Mar 13, 2014 (LBO) - Sri Lanka Telecom said it had started a cloud computing service branded 'akaza' as it deploys high speed broadband internet around the country.

"Today, around the globe, high-end enterprises, private and public institutions, small and medium enterprises (SMEs) and micro businesses tap into cloud computing to lower their costs and increase productivity," group chief executive Lalith de Silva said in a statement.

"We see a huge potential in this area coupled with SLT's superior broadband connectivity…"

SLT said the firms using its 'akaza' platform will not have to invest in large servers, data centres, expensive software as well as technical staff, allowing them to focus on core business and reduce capital expenditure.

The firm offers infrastructure-as-a-service (IAAS) platform that provides shared computing power to customers, with data centres in two locations.

SLT said dedicated firewalls and load balancers are in place to assure security and distribute traffic among customers' dedicated cloud servers.

SLT set up a team of experts to provide 24 hour customer support.

SLT as platform-as-a-service (PAAS), software-as-a-service (SAAS) and desktop-as-a-service (DAAS) platforms will be added to the service