Financial Times - Ceylinco Insurance the leader

Ceylinco Insurance the leader –says IBSL

Ceylinco Insurance Company Ltd has come out on top as the market leader securing the largest market share in both general and life insurance categories, the Insurance Board of Sri Lanka (IBSL) said in its 2005 annual report.

This has laid to rest the long battle between giants Ceylinco and Sri Lanka Insurance Co (SLIC) as to the leader in the insurance business.

In the long term insurance business category (life business), Ceylinco has recorded 32.36% in gross written premium (GWP) in 2005 up from 31.65% in 2004 while SLIC is way behind with 24.32%, a 2.3% decline compared with 2004’s 26.62%.

The IBSL said that the industry’s life insurance business witnessed a 21.6% growth rate last year with GWP of Rs.14,814 million when compared with 2004’s growth rate of 17.9% with a GWP of Rs. 12,517 million.

In the general insurance business Ceylinco recorded a 35.85% stake last year over 2004’s 32.76%, becoming the market leader. SLIC’s share in 2005 was 29.81% of GWP in general insurance, which is a 1.32% decline compared to the previous year’s 31.13%.

The annual report has said that in the general insurance business a significant growth rate of 31.5% when compared with 2004’s growth rate of 25.9% was reflected and that this high growth may be attributable to the insurance consciousness created among the public as a result of the Tsunami in December 2004.

It said the motor insurance was the major contributor to the general insurance GWP. During 2005, motor insurance accounted for 49.54 percent in the total general insurance business. This reflected a growth rate of 32.69% when compared with 2004’s 49.11%.

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