Aviva NDB Insurance recorded a significant growth in consolidated group revenue amounting to LKR 2,731 million during the first three months ended 31 March 2010.
- Consolidated group revenue grows to LKR 2,731 million
- Total gross written premium grows by 34% to LKR 2,080 million.
Aviva NDB Insurance recorded a significant growth in consolidated group revenue amounting to LKR 2,731 million during the first three months ended 31 March 2010. This reflects a growth of 42% over the corresponding period in 2009. Total gross written premium income of LKR 2,080 million recorded a growth of 34% compared to the previous year reflecting a successful transformation of the company and its sales force who are now known as "Wealth Planners".
The commendable top-line performance of the group was largely driven by the 33% growth in Life insurance and 36% growth in general insurance business compared to the corresponding period in 2009. The group reported a loss of LKR 80 million which was attributed to brand migration investment. Profit before tax excluding brand migration spend amounted to LKR 119 million.
There was also a prudent increase of provision for incurred but not reported (IBNR) claims for the general insurance business arising from the increased volume and mix of new business. The bottom line performance for the period is marginally higher than the business plan for the period. The financial results for the quarter do not include a bottom-line contribution from the long-term insurance business as it is usual that this is determined at the end of the financial period, after the actuarial valuation is carried out.
Commenting on the company’s performance, managing director, Shah Rouf, said: “Our results reflect a very successful transformation in line with the Aviva group’s vision of creating ‘One Aviva – Twice the value'. The transformed entity, Aviva NDB, was readily accepted by all stakeholders and this became evident immediately. We are delighted that it has become an instantly recognizable brand.
"Furthermore, our distribution capability was strengthened in the first quarter. Our Wealth Planners are now equipped with the expertise to meet both life and general insurance needs which is a significant value addition to our customers and this is reaping positive results for the company.”
Bill Lisle, Chairman, pleased with the company’s performance, added: “We have had a great start with the company’s transformation and are now well positioned and poised to become a driving force in the industry. Aviva is committed to bring prosperity and peace of mind to all our stakeholders and I am confident that with the prudent strategies in place for the growth of the business, we will deliver on our ambitious plans by the end of this year.”
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