Ceylinco Life’s 2017 net profit grows to Rs. 9.4 bn
View(s):Ceylinco Life has announced that its net profit for the year ending 31st December 2017 is Rs. 9.467 billion.
This, the company said in a media release, includes a one-off surplus of Rs. 3.456 billion generated by a change in the basis of the valuation of Life Funds under Section 96A of the Regulation of Insurance Industry Act No 43 of 2000.
On the same basis, the company’s profit before tax has been re-stated as Rs. 9.807 billion, the company said.
Consequently, Ceylinco Life’s Earnings per Share for the 12 months increases to Rs. 189.35 from Rs 120.22 prior to the change mandated by the Insurance Regulatory Commission of Sri Lanka (IRCSL), and reflects an increase of Rs 127.77 since 31st December 2016.
“We have welcomed the regulator’s decision to change the basis of the valuation of the life fund, but it is important to note that this results in a one-off gain that would impact on growth rates for the current year,” Ceylinco Life Managing Director/CEO R. Renganathan said. “It must also be stressed that the company had recorded very respectable growth rates of 95 per cent and 70 per cent respectively in net and pre-tax profits, before the transfer of the one-off surplus.”
The release said Ceylinco Life has already reaffirmed its market leadership in Sri Lanka’s life insurance industry for the 14th successive year, with premium income of Rs. 15.7 billion in 2017.
Ceylinco Life sold 126,838 new life policies in the year reviewed at an average of 10,570 per month and paid out Rs 6.7 billion in net claims and benefits to policyholders.