Ceylinco Life’s 6-month net income at Rs.14.7 bn
View(s):Ceylinco Life has reported net income of Rs.14.7 billion for the first half of 2019, an increase of 10.55 per cent over the corresponding period of last year as a result of investments yielding noteworthy returns and premium income recording equitable growth.
In its 16th consecutive year of market leadership, the company’s premium income for the six months ending June 30, 2019 improved by 5.72 per cent to Rs.8.8 billion while investment income for the period grew by 16.1 per cent to Rs.5.9 billion. Profit before tax increased by a healthy 13.55 per cent to Rs.3.8 billion, but net profit declined by 5.37 per cent to Rs.2.9 billion, largely as a result of income tax expense more than tripling, from Rs.303 million for the first half of 2018 to Rs.918.4 million for the six months under review, consequent to the new tax law that came into effect from April 2018, the company said in a media release.
“While the increase in our effective tax rate takes a big bite out of profits, our results demonstrate the solid operational gains the company continues to make even in a period of depressed market sentiment,” Ceylinco Life Managing Director Thushara Ranasinghe said. “We attribute this to the confidence of customers in the inherent strength and stability of Ceylinco Life, and our unwavering adherence to our business fundamentals and core values despite the pressures of the business environment.”
Total assets of Ceylinco Life increased by Rs.18.8 billion or 15.9 per cent since end December 2018 to Rs.136.9 billion as at end June 2019, while the company’s Life Fund grew by Rs.2.8 billion or 3.2 per cent over the six months to Rs.90.9 billion at the end of the first half of the year.
The company paid out Rs.5 billion as net claims and benefits in the six months reviewed, an increase of 11.7 per cent over the Rs.4.5 billion paid in the corresponding period of 2018.
Ceylinco Life ended 2018 with assets of Rs.118 billion, total income of Rs.28.7 billion, premium income of Rs.17.8 billion, a Life Fund of Rs.88.05 billion, an investment portfolio with a value in excess of Rs.103.7 billion and net profit of Rs.5.79 billion.