- Premium income grows by 17.9% to Rs 22.1 billion
- Investment & other income up11.3% to Rs 14.9 billion
- Total assets surpass Rs 150 billion milestone
- Retains market leadership in life insurance sector for 17th consecutive year
Ceylinco Life has achieved consolidated income of Rs 36.98 billion for FY 2020, demonstrating the Company’s ability to grow business volumes and investment returns even in the most challenging conditions.
This top line growth of 15.2 per cent was made possible by Gross Written Premium Income of Rs 22.07 billion for the 12 months ending 31stDecember 2020 – an increase of 17.9 per cent over 2019 – and investment and other income of Rs 14.9 billion, which was up 11.3 per cent, Sri Lanka’s life insurance leader reports.
The growth in life insurance business resulted in Ceylinco Life retaining its position as the market leader in Sri Lanka’s life insurance sector for the 17th consecutive year.
Ceylinco Life paid Rs 12.2 billion in net claims and benefits to policyholders for the year under review, an increase of 15.7 per cent over the preceding year, and transferred Rs 9.42 billion to its life fund, which grew by 10.94 per cent to Rs 106.74 billion as at 31st December 2020.
The Company’s total assets grew by Rs 17.6 billion over the year at a monthly average of more than Rs 1.4 billion to cross the milestone of Rs 150 billion at the end of the year, while its investment portfolio recorded an increase of 14.36 per cent in value over the 12 months to reach Rs 133.7 billion as at 31st December 2020.
“We attribute our strong top line growth to the Company’s agile and speedy acclimatisation to the so-called new normal environment thrust upon us by the global pandemic,” Ceylinco Life Managing Director/CEO Mr Thushara Ranasinghe said. “Technology, determination and innovation kicked in at very short notice, enabling us to keep selling life insurance, process and settle claims, and develop new products, while managing our investments strategically and tactically for best returns. The effects of the pandemic continue to impact the business, but we are confident that our systems and the team’s spirit will keep us on the path of growth.”
Ceylinco Life transferred Rs 4.1 billion to the shareholders’ fund in respect of the 12 months, increasing the shareholder fund to Rs 38.1 billion at the end of the year.
The Company posted profit before tax of Rs 8.77 billion for FY 2020, reflecting an increase of 6.75 per cent over the previous year. Net profit after tax for FY 2020 was Rs. 6.93 billion and reflected an increase of 3.93 per cent over the previous year.
Ceylinco Life’s basic earnings per share for the year amounted to Rs 138.68, while net assets value per share stood at Rs 762.90 as at 31st December 2020. Return on assets for the year was 4.60 per cent and return on equity 18.18 per cent.
Sri Lanka’s leading life insurer for more than half of the 33 years it has been in existence, and certified as a ‘Great Workplace’ in Sri Lanka by Great Place to Work®, Ceylinco Life was ranked the ‘Most Valuable Life Insurance Brand’ in Sri Lanka by Brand Finance in 2020 and declared the ‘Peoples Life Insurance Service Provider of the Year’ for the 14thconsecutive year at the 2020 SLIM-Nielsen Peoples Awards. The Company was named the ‘Best Life Insurer in Sri Lanka’ for the seventh consecutive year by World Finance in 2020, and accorded an ‘Honourable Mention’ as one of the ‘Most Admired Companies in Sri Lanka’ in 2019-20 by the International Chamber of Commerce Sri Lanka (ICCSL) in collaboration with the Chartered Institute of Management Accountants (CIMA), UK.
Ceylinco Life has close to a million lives covered by active policies and is acknowledged as a benchmark in the local insurance sector for innovation, product research and development, customer service, professional development, and corporate social responsibility.