COLOMBO: The profit before tax of Long Term Insurance Business amounted to LKR738 million (US$4.8 million) for 1H2017, down by 78.5% compared to LKR3,434 million for the corresponding period last year, according to a statement from the Insurance Regulatory Commission of Sri Lanka.
The main reason for the plunge was the loss of LKR2,260 million recorded by state-owned Sri Lanka Insurance Corporation (SLIC) for the quarter ended 30 June 2017. In contrast, the pre-tax profit of General Insurance Business amounted to LKR3,922 million for the first half of this year, 114.9% higher than 1H2016’s LKR1,825 million).
Overall, the combined pre-tax profit of insurance companies in Sri Lanka fell to LKR4,660 million (US$30.3 million) for the first six months of this year from LKR5,259 million, representing a decline of 11.38%,
The insurance industry recorded a growth of 13.87%, in terms of Gross Written Premium, during the first half of year 2017 when compared to the same period in the year 2016. This growth is relatively lower than the growth rate experienced in 1H2016 of 17.01%
The GWP for Long Term Insurance and General Insurance Businesses for the first six months was LKR76,162 million. The GWP of Long Term Insurance Business amounted to LKR33,657 million, 11.06% higher compared to the first six months of 2016., The GWP of General Insurance Business amounted to LKR42,505 million during the first half of 2017, 16.20% higher than for 1H2016.
Total assets of insurance companies increased to LKR533,075 million at 30 June 2017 when compared to LKR478,427 million at 30 June 2016, reflecting a growth of 11.42%. The assets of Long Term Insurance Business amounted to LKR375,159 million (30 June 2016: LKR323,604 million), indicating a growth rate of 15.93% year-on-year. The assets of General Insurance Business amounted to LKR157,915 million at end-June 2017 (30 June 2016: LKR154,823 million), showing a growth rate of 2.0%.
