Life Fund exceeds Rs60 billion; Assets grow to Rs 71.07 billion
Ceylinco Life has reported total income of Rs 18.54 billion for the 12 months ending 31st December 2014 with premium income of Rs 12 billion, emphatically retaining its position as the country’s largest life insurer for the 11th consecutive year.
Gross written premium income recorded an increase of 7.9 per cent over the previous year, while investment income improved by 1.78 pre centin the review period to Rs 6.83 billion, the company said in a filing with the Colombo Stock Exchange.
The value of Ceylinco Life’s investment portfolio appreciated by 12.72 per cent to Rs 57.2 billion, a noteworthy growth in the context of the generally lower rates of return on interest bearing assets during the year. Total assets grew by Rs 7.12 billion or 11.14 per cent to Rs 71.07 billion.
The company’s Life Fund recorded a net growth of Rs 7.26 billion or 13.75 per cent over the 12 months to Rs 60.02 billion at the end of the year in a strong indication of the financial strength of Ceylinco Life, the company said.
“It was a tough year, but our unwavering focus on business fundamentals and prudent investment enabled the company to post an impressive performance without being distracted by challenges or extraneous matters,” Ceylinco Life’s Managing Director and CEO R. Renganathan said. “These results are also an irrefutable indication that Ceylinco Life continues to enjoy the trust and confidence of policyholders and prospective customers.”
He disclosed that Ceylinco Life sold 139,777 new policies in 2014 at an average of 11,648 per month, with improved sales of retirement plans contributing to the growth in premium income in the year under review.
The company’s policyholders received more than Rs 4.8 billion in benefits in 2014. This included maturity and other survival benefits, claims, and annual bonuses.
At the end of the year under review, Ceylinco Life’s investment portfolio comprised of Government Securities (50 per cent); Licensed Private Banks (15 per cent); State Banks (9 per cent); Real Estate (9 per cent); Corporate Debt (14 per cent) and Others (3 per cent). These investments are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No 43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL).
One of the highlights of 2014 for Ceylinco Life was the international recognition the company received when World Finance adjudged the company the ‘Best Life Insurance Company in Sri Lanka.’ The prestigious UK-based bi-monthly magazine gave Ceylinco Life high markets in several areas of assessment including efficiency in processing new business, focus on customer retention, employee and agent training, ensuring best practices within the company, financial performance, market research and measuring customer satisfaction.
Independently rated one of Sri Lanka’s most valuable brands, Ceylinco Life has maintained its leadership of the country’s long term insurance sector from 2004 onwards. The company operates the largest branch network among local life insurance companies, and has won multiple international and local awards for its commitment to the community and success in brand equity building.