On the back drop of transformation Aviva NDB Insurance plc recorded a post-tax profit performance of LKR 730 million for 2009 - the highest in the 21 year history of the company earlier known as Eagle Insurance plc.
- Post tax profit performance grows 58% to LKR 730 million
- General gross written premium grows 22% to LKR 2,504 million
- Life gross written premium grows 7% to 4,632 million.
On the back drop of transformation Aviva NDB Insurance plc recorded a post-tax profit performance of LKR 730 million for 2009 - the highest in the 21 year history of the company earlier known as Eagle Insurance plc. This reflects a noteworthy growth of 58% for the year.
Total gross written premiums in life business recorded LKR 4,632 million - a growth of 7% which is above the 1% estimated industry growth rate. Unit-linked business recorded a top line growth of 100% year-on-year while general insurance business achieved a milestone exceeding LKR 2.5 billion in gross written premium, again for the first time in the company's history, recording an increase of 22% over the previous year. This too is well above the industry average growth rate which is estimated to have declined by 4%.
The primary driver of general insurance growth was the Motor segment which recorded a 33% growth crossing the LKR 1 billion mark - another first in the company's history. The net underwriting result in general insurance reflected a marked improvement evidenced by the COR of 99.7%, attributed to initiatives in claims management and the year's reinsurance programme.
The exceptional post-tax profit performance was primarily due to investment income and most importantly, the achievement has not altered the risk profile or the risk appetite of the company. Aviva NDB continues to maintain a prudent investment approach with 78% of Life policyholders' investment portfolio being invested in gilt-edged Treasury bills and Treasury bonds.
The managing director Deepal Sooriyaarachchi commenting on the exceptional performance said: "Despite the tough economic and business environment the company recorded a noteworthy financial performance yet again."
Bill Lisle, chairman, commending the company's performance said: "Our results stand testimony to the unwavering spirit with which Aviva NDB faced the rough tide and delivered exceptional results being mindful of our promise of providing prosperity and peace of mind to our customers as well as maintaining the strength of our balance sheet."
Aviva NDB Insurance plc was launched in mid February 2010 and the transformation was designed to harness the potential of the future. The change process will touch every aspect of the company while retaining the values, ethics and culture that have been the hallmarks of Eagle Insurance plc. The transformation is in line with Aviva's global strategy of "One Aviva, twice the value" and opened a new chapter in the company's illustrious history. The transformation builds on the rich heritage of Eagle while reinforcing the company with the strength of global Aviva group and the Sri Lankan values of the NDB Group, one of the largest financial conglomerates in the country. NDB bank is the fastest growing, highest capitalized Sri Lankan commercial bank.
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About Aviva
Aviva is the world’s fifth-largest* insurance group, serving over 50 million customers across Europe, North America and the Asia Pacific. Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £24.4 billion and funds under management of £352 billion as at 30 June 2009. Aviva is a leading provider of life and pension products in Europe with substantial positions in other markets around the world, making it the world’s fifth-largest insurance group.
* based on gross worldwide premium as at 31 December 2008.
In Asia Pacific, Aviva operates in China, India, Sri Lanka, Hong Kong, Singapore, Malaysia, Korea, Taiwan and the Middle East. Aviva’s long-term savings products and services are distributed through a multi-channel network, which includes a direct sales force, insurance intermediaries and bancassurance partners.
About NDB Bank
NDB Group is one of the largest financial conglomerates in Sri Lanka, operating regionally in Maldives and Bangladesh. The Group offers project finance, corporate banking, SME lending, retail banking, investment banking, stock broking, wealth management and insurance solutions under one roof. Today, NDB Bank, the commercial banking arm of the NDB Group is the highest capitalized Sri Lankan commercial bank.