Ceylinco Life ends year positively

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Ceylinco Life recorded a Gross Written Premium exceeding Rs 7.5 billion. Releasing its unaudited figures for the 12 months ending December 31, 2010, the company said its Life Fund grew 20.3% to Rs 25.6 billion, an increase of Rs 4,321 million during the year, while investment income grew 28.4% to Rs 3,350 million.

The company sold more than 159,000 new life policies in the year reviewed at an average of 13,250 per month, despite the adverse socio-economic environment and paid Rs 2,756 million in customer benefits (up 24.8%), inclusive of Rs 485 million paid as claims, all positive indicators of growth and financial strength.

"Our performance in what was undoubtedly the most difficult year in the company's history is most encouraging and illuminating," R Renganathan, Deputy Chairman, Ceylinco Life said. "Adversity is the best test of a company's mettle, and our figures show that we have ended the year with flying colours."

He said the company's solvency margin had improved further in the year under review, and stood at six times the statutory requirement as at November 30, 2009.

Identifying shrinking disposable incomes in target customer segments as one of the challenges to the growth of insurance, Renganathan said the company had responded by developing innovative products that made insurance more affordable and invested in initiatives to improve awareness of the need for life insurance.

A key feature of the company's performance in 2009, he said, was the fact that Ceylinco Life had not scaled down on any of its customer benefits and community programmes during the year.

The company had focused on enhancing efficiency and becoming leaner in the face of testing market conditions, and had reduced its expenses on staff, administration, selling and finance by a noteworthy 19.1%, he disclosed. Investments had grown 20% to Rs 23.3 billion in the year reviewed, while total assets increased 19.5% to Rs 29.9 billion