HNB Assurance Limited has reported a post-tax profit of Rs 60.3 million for the year ended 31 December 2005, registering a growth of 268% over the post tax profit of Rs 16.4 million recorded in the previous year. Even after removing the impact of losses caused by the tsunami from last year’s comparative figure, the growth in post tax profit amounts to 45.3%.
A growth of 51% achieved in the combined turnover of the company contributed significantly towards this achievement. The company’s general insurance premium income grew by 39% over the last year to reach Rsmium income grew by 72% to reach Rs 354mn.
Another contributor to the increase in profitability was the recognition of a surplus from life insurance for the first time since the commencement of life business by the company.
Therefore, HNB Assurance has transferred Rs l0mn from the life fund to the shareholder’s account after making adequate provisions for solvency margins and contingencies. It also made provisions to declare a bonus for its life insurance policyholders, the terms of which will be announced shortly.