Over 31% growth in 1Q22
Increases market share by 5%
16.5% increase in PAT (Group) for FY21
Leading Sri Lankan insurer Co-operative Insurance Company PLC (CICPLC) recently released its latest results for the first quarter of 2022, putting itself in a stronger position with impressive growth of 31% compared to the same period of the year. previous year, amid many macroeconomic difficulties.
During 1Q22, the company delivered net written premium growth of more than 35%, as well as market share growth of more than 5% compared to the first quarter of the previous year, ranking it among the fastest growing companies in the industry.
The company also saw an increase in investments and has a strengthened asset portfolio, recording total asset growth of 21%.
“During the first quarter of this year, we demonstrated our commitment to all of our stakeholders with unwavering growth, diversification, sustainability and customer retention. We delivered a much stronger performance as the entire industry faced instability with inevitable shutdowns and economic instabilities, and there is no doubt that this momentum will continue over the coming quarters and years.” notes Susil Weerasekara, president of Co-operative Insurance.
Demonstrating its improved and strengthened financial position, Co-operative Insurance shared growth with shareholders through a total dividend payout of Rs 280 million in the previous year. Earnings per share (EPS) was up at Rs.0.54 from Rs.0.48 the previous year.
The group’s consolidated profit increased by 16.5% in 2021 to reach 810 million rupees, exceeding 695 million rupees compared to the previous year. This growth is the culmination of the 301% rise in profits recorded by Cooplife, as well as the profit after tax (PAT) of 631 million rupees earned by CICPLC.
For the fiscal year ending December 31, 2021, the company was able to record an impressive 2.7% increase in its gross written premium (GWP), as well as a 3.5% increase in its net premiums acquired, while settling claims totaling over Rs. 2.4 billion during this period.
The company performed well in general insurance with a 41.6% increase in non-auto premium income, as well as an 8.5% increase in GWP in life insurance, proving flexibility of the company to adapt to various market conditions, although the automobile is traditionally the largest of the company. segment.
According to the managing director of Co-operative Insurance, Udaya Kumara, “this positive growth trajectory was achieved despite the weakening of the country’s general insurance sector as a whole, which was the result of reduced revenues during the closures and due to a weakening of people’s purchasing power, as well as strategic transformations within the company.
The company has also boosted its island-wide rural outreach, welcoming new and existing customers through the introduction of liability insurance counters in its branches.
Additionally, underscoring its financial viability, the company also stands out as one of the very few insurers to achieve an underwriting profit, the result of a healthy balance between earned premiums, expenses and claims payout.
On the cost side, although the company experienced a slight reduction in its staff during the year, it was able to maintain the growth in turnover and results, by demonstrating a greater efficiency and the ability to maintain quality growth, while applying prudent cost controls. response to the prevailing situation in the country.
Co-operative Insurance Company PLC is one of Sri Lanka’s leading insurance providers with a proven track record of sustainable growth and strong financial positioning. The company is poised to expand its reach with new products and an improved branch network, and has already embarked on its journey to make its services more convenient through digital platforms, while working to create a financially inclusive Sri Lanka.