LOLC Group’s Insurance arm posts record Rs. 8.55 Bn GWP for FY 2022

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Kithsiri Gunawardena, Director/ CEO – LOLC General Insurance-Nadika Opatha
Director/ CEO – LOLC Life Assurance

LOLC Group’s Insurance arm concluded FY 2022 on a high note, recording its best -ever performance to date.

Consolidated Gross Written Premium (GWP) of LOLC General Insurance (motor and non-motor) for the year ended December 31, 2022 stood at Rs. 8.55 billion, reflecting a commendable 17% improvement over the previous financial year.

OLC Life and General together also accounted for a combined Profit After Tax (PAT) of Rs. 2,418 million. What is more remarkable is that these results come amidst the backdrop of a significant decline in industry-wide performance owing to severe external challenges throughout 2022.

In the current financial year, LOLC General Insurance recorded a Profit Before Tax (PBT) of Rs.1.65 billion, denoting a solid 30% increase year on year, along with a PAT of Rs. 1.40 billion representing 28% improvement over the figure reported for the previous financial year.

The Total Comprehensive Income of the company recorded Rs. 449 million. Furthermore, with the Company’s market share in the Motor segment edging up to 10% in the year 2022, LOLC General too moved up 2 spots in the industry league tables from 7th position in 2021 to claim 5th place in 2022.

Similarly, LOLC Life Assurance also soared ahead to deliver exceptional results and reach some important milestones in the current financial year. Reporting an overall Premium income growth of 12% year on year, the company was recognized as having the Highest New Business growth (FYP) in the industry at 31%, a monumental achievement given the severe challenges encountered during 2022. Meanwhile, growing by 74% year on year, the PAT crossed the 1Bn mark for the first time in the company’s history.

Backed by strong bottom line results, LOLC Life Assurance reported a Return on Equity (ROE) of 33%. Moreover, with a 4% market share in GWP terms, LOLC Life moved up to the 7th spot in the industry rankings for 2022 from 8th position occupied in the previous financial year.

The formation of the Insurance arm, – Life and non-Life (General) operations in 2010 denotes a key milestone in LOLC’s strategic diversification agenda. A little over a decade on, LOLC life and general businesses have proven themselves as the most preferred insurance providers in the market.

LOLC Life Assurance Ltd (LOLC Life) continues to offer a comprehensive suite of Insurance covers from Life Insurance plans, pension plans, child plans, critical illness plans and home loan protection solutions, all tailored to suit the bespoke needs of each customer.

LOLC General caters to all customer segments through specialized lifestyle Insurance solutions for vehicles, homes, businesses, travel, cargo, personal accident cover etc.

Seeking to emulate a more inclusive approach to business, LOLC General also offers Takaful Insurance – an alternative solution for risk adverse customers to benefit from the risk sharing concept promulgated by the Islamic banking principles.

Over the past ten years, LOLC General has recorded a number of milestones, most notably the listing on the Colombo Stock Exchange in December 2021. The unveiling of the ‘Honours’ loyalty programme in October 2022 marks another important milestone for LOLC General followed by many more accolades. The recent growth acceleration in LOLC’s Life and General business has been supported by the expansion in the island-wide branch network.

As part of the overall expansion strategy, both companies have also started investing heavily in digital technology. Over 1100 company-appointed women Insurance agents around the country, benefit from flexible work-time schedules, which give them the opportunity to become productive members of society while also experiencing a healthy work-life balance.

Seeking to replicate these concepts on a global scale, the LOLC Group took the next step to grow its insurance footprint by setting up Serendib MicroInsurance Ltd – Cambodia in June 2021. Serendib Micro Insurance Ltd – Cambodia is jointly owned by LOLC Life and LOLC General, with each entity having a 45% stake.