HNB Assurance enjoys growth in top line and bottom line

For the successive occasion HNB Assurance Ltd. has reported a growth in both its turnover and profit in its interim results.

According to the interim results released for the six months period ended 30 June 2007, the company’s turnover grew by 28% over the corresponding period, to reach Rs.646 million.

Its profit before taxation grew by 46% to reach Rs.32.3 million while the profit after taxation grew by 11% to record Rs.23.8 million for the first half of 2007.
The profit figures have been arrived at by considering only the general insurance business since profits from the life insurance business are recognized only after the year-end actuarial valuation is completed.

Commenting on the mid-year results HNB Assurance Managing Director Manjula de Silva said: “the Company has yet again demonstrated its commitment to achieve stable and consistent growth in both its top line and bottom line“. He also noted that “these results have been achieved in the midst of an increasingly competitive market environment which exerts pressure on prudent underwriting and claims management practices.”

Being a pioneer in the field of bank assurance, the company generated a turnover of Rs277 million through the branch network of its parent company, HNB, accounting for 43 % of the total turnover. The company’s rapidly expanding agency force contributed Rs.262 million to the turnover accounting for 41% The Broker and Direct Channels also contributed RsA2 million (6%) and Rs.65 million (10%) respectively.