AVIVA NDB records outstanding growth
AVIVA NDB has consolidated revenue growth of 61 percent amounting to
Rs 10.9 billion, over the corresponding nine months in the previous
year. The total annual revenue of the previous year has been surpassed
at the end of the third quarter in 2010 due to the strong topline
performance of both the Life and General insurance businesses.
Group revenue in the third quarter 2010 was reported at Rs 4.9
billion which represents an increase of Rs 2.5 billion over the
corresponding quarter in 2009. The total Gross Written Premium income
for the period was also impressive, amounting to Rs 7,215 million, a
growth of 54 percent over the corresponding nine months in 2009.
Life insurance business alone accounted for Rs 5,082 million
recording a growth of 63 percent while General insurance generated a GWP
of Rs 2,133 million, a strong growth of 36 percent.
AVIVA NDB Insurance Managing Director Shah Rouf attributed the
exceptional growth to the company’s investment-linked expertise.
The backdrop of a strong equity market has contributed to an upsurge
in our business that in nine months surpassed the revenue for the whole
of last year, which incidentally was the highest sales recorded in the
Company’s history. More importantly, our team of Wealth Planners have
been revitalized by their new role and ability to serve both the Life
and General insurance needs of our customers.
They are more efficient and effective in an IT-savvy environment that
is also more customer-centric than ever before’, he commented. The Group
reported a loss of Rs 13 million, after taxation for the nine months
ending September 30 2010 while reporting a profit of Rs 114 million
after tax for the third quarter ending September 30, 2010.
The corresponding quarter in 2009 reported a profit after tax of Rs
74.8 million for the Group. The marginal loss was after charging the
large investment the company has made in the brand in the wake of
transforming from Eagle to AVIVA NDB. Higher weather-related claims also
contributed to this loss. There was also a prudent increase of provision
for incurred but not reported (IBNR) claims.
The financial results for the period do not include a bottom-line
contribution from the Life insurance business as this is determined at
the end of the financial period, after the actuarial valuation of the
life fund is determined.
The newly-appointed AVIVA NDB Chairman T R Ramachandran was confident
of the company’s ability to achieve its ambitious goals for the year,
based on the positive results of the third quarter and growth in scale.