Making a paradigm shift in Sri Lanka's insurance business, HNB Assurance PLC a subsidiary of Sri Lanka's Hatton National Bank implements Innovative insurance schemes for youth and elderly citizens in the country focusing on positive and joyful aspects of life .
The HNB assurance accords high priority to positive aspirations of the people while covering all ups and downs of their lives, said Lalith Fernando , General Manager , Marketing and Distribution . HNB Assurance started in 2001 and has been a fast growing insurer.
"From a very modest 12 million rupees of premium raised during the first year in 2001 we have surpassed 2,100 million of rupees premiums in 2009,"he revealed.
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| Lalith Fernando , General Manager, Marketing and Distribution |
Owing to the innovative strategy adopted by HNB Assurance, the fast growing insurer has been able to weather the storm during difficult periods recording a significant growth, he said. HNB Assurance PLC has reported a 31 percent growth in its profit after tax for the half year ending June 30, 2010. Profit after tax for the six months registered Rs 44.3 million while the profit before tax stood at Rs 62.3 million, up by 34 percent. The company's turnover from General Insurance business grew by 10 percent to record Rs 604.4 million while the turnover from Life Insurance business grew by 3 percent to reach Rs 459.8 million for the first half of the year, he added. The company has the potential to make Rs. Two billion by correct targeting from one successful insurance product alone, at a nominal investment spend of Rs. 30 million, despite a hostile economic environment.
In terms of market capitalisation, not so long ago our share price was about Rs 18 and had a share capital of 25 million shares. Around Rs 450 million would have been the total net worth of the company. Recently we surpassed Rs 3 billion within a 9-year period. He noted that as a team the company has made a significant accomplishment in the last 9 years, he said. Fitch Ratings has assigned HNB Assurance Ltd a National Insurer Financial Strength (IFS) rating of 'A(lka)' and a National Long-term rating of ''A (lka)'. The company has been branded with grade 'A' by the LMD he revealed.
HNB Assurance PLC is now operating through 49 branches countrywide with two latest additions in Nelliaddy and Manipay. Two branches have been relocated in Ratnapura and Batticaloa. 95 Bancassurance wings are being operated in HNB branches through out the island. More attention has been paid on promoting insurance in rural areas. The company's presence in rural areas is around 86% and only 14 % in Colombo he said.
HNB Assurance has shown its meltle recording considerable growth while continuing its track record as the fastest growing insurer in the country while introducing new innovative products. Briefing on the progress of these products he noted that My Life policy ,Motorguard and Ran Aswanu received visibility and recognition within a short period. My Life allows withdrawals for youth in their happy occasions like marriage, , child birth , child's school admission , and the purchase of a vehicle. It helps youth transform their dreams into reality, he said.
'Ran Aswanu' is offered to people who are earning a seasonal income, especially those who are engaged in cultivation, fisheries and other similar employment. This product pays premiums as and when the needs of the clients. there is no due date. After the payment of the first premium the policy is active and it won't lapse he added. The policy will be in force, even the client fails to pay any other premiums. The client will be allowed to pay when he has the capacity to make payments.
This product is mainly, targeted for the farmers, fishermen, and other seasonal income earners. HNB Assurance is striving to accelerate further to gain the maximum of the potential in new era taking advantage of the opportunities under the peaceful environment , he concluded. |
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