Continental Insurance continues growth momentum amidst competition
View(s):Continental Insurance Lanka Ltd, specialised in the general insurance segment, has continued to consolidate amidst stiff competition, a top official of the company said.
According to Treasury statistics, the Sri Lankan insurance industry was able to achieve a growth of 15.07 per cent in terms of overall Gross Written Premium (GWP) for both long term and general insurance business sectors in 2017.
Further industry consolidation is likely, given the competitive nature of the non-life insurance market where some players are recording significant growth, Managing Director of Continental Insurance Lanka Ltd, Chaminda de Silva told the Business Times.
“We expect the insurance sector to continue its growth momentum, driven mainly by the rising per capita income, growing awareness on insurance, and considerably lower insurance penetration supporting the growth potential,” he said.
With Sri Lanka’s general insurance business becoming increasingly competitive, Continental Insurance strives to stay ahead by introducing ethical insurance solutions, he disclosed.
The company has spread its wings and established a rapidly growing network of 50 branches to cater to a vast customer base, he said.
Net earned premium of the company has recorded 36 per cent growth, to Rs. 2.6 billion in 2017 from Rs. 1.9 billion in 2016.
Operational profit increased to Rs.172 million last year from Rs. 100 million in 2016 gaining a growth of 72 per cent, Mr. de Silva said revealing that claims paid also recorded an increase to Rs. 1.6 billion from Rs. 1.2 billion during the same period.
Net profit grew by 40 per cent to Rs. 250 million last year from Rs. 180 million in 2016.
Considering the above, the success is manifested in the record number of the cumulative gross written premium increasing to Rs. 19.4 billion, passing it down to the customer data base of 193,000 by paying their claims up to a total of Rs. 8.8 billion he added.
Continental Insurance is a fully owned subsidiary of Melsta Corp PLC, which is also the parent company of Distilleries Company of Sri Lanka (DCSL PLC).
(Bandula)