Insurance companies muster over Rs. 39 Bn PBT by end 3Q-2022

Insurance companies muster over Rs 39 Bn PBT by end 3Q-2022 Despite current economic constraints the Sri Lanka insurance companies showed praise worthy profits for the third quarter of 2022 according to the Insurance Regulatory Commission of Sri Lanka.

The profit (before tax) of insurance companies at the end of third quarter 2022 in both Long Term Insurance Business and General Insurance Business amounted to Rs. 39,110 million (Q3, 2021:Rs. 26,071million) showing an increase in total profit by 50.01%.

The profit (before tax) of the Long-Term Insurance Business amounted to Rs. 17,952 million (Q3, 2021:Rs. 11,655 million) while the profit (before tax) of the General Insurance Business amounted to Rs. 21,158 million (Q3, 2021: Rs. 14,416million). Thus, profit (before tax) of the Long-Term Insurance Business and General Insurance Business have increased by 54.02% and 46.77% respectively. The highest recorded profitability was in 2017, while the lowest was in 2019.

Unfavourable economic conditions prevailed in the country, coupled with negative effects created by Easter Sunday attacks challenged the performance of the insurance industry during the year 2019.

During 2020, the insurance industry displayed a significant financial performance by posting a year-on-year profit growth of 35.08%.

Contrast to previous years, the contribution of general insurers to overall profitability exceeded the long-term insurers in 2020.

The profits of the long-term insurance business contracted by 9.36% in 2020 as a result of decreased surplus transfers and enlarged claim provisions of major long-term insurers. In terms of performance, the long-term insurance business rebounded strongly during 2021, and achieved a profitability growth of 20.82%.

Meanwhile the value of total assets of insurance companies too has increased to Rs. 921,602 million as at September 30, 2022, when compared to Rs. 854,994 million recorded as at end of September 30, 2021 reflecting a growth of 7.79%.

The assets of the Long-Term Insurance Business amounted to Rs. 656,631 million (Q3, 2021:Rs. 615,538 million) indicating a growth rate of 6.68%.

The assets of the General Insurance Business amounted to Rs. 264,971 million (Q3, 2021: Rs. 239,456 million) depicting a growth rate of 10.66% at the end of 3rd quarter 2022. The value of total assets of insurance companies has increased to Rs.921,602 million as at September 30, 2022, when compared to Rs. 854,994 million recorded as at end of September 30, 2021 reflecting a growth of 7.79%. The assets of the Long-Term Insurance Business amounted to Rs. 656,631 million (Q3, 2021:Rs. 615,538 million) indicating a growth rate of 6.68%.

The assets of the General Insurance Business amounted to Rs. 264,971 million (Q3, 2021: Rs. 239,456 million) depicting a growth rate of 10.66% at the end of third quarter 2022.