Allianz Lanka maintains robust performance, 2008

Allianz Lanka maintained the momentum of steady growth and profitability into its fourth year of operations in General Insurance, with Gross Written Premium (GWP) reaching 601 million, a year over year growth of 45% over the previous year’s GWP of 414 million. Net Profit before Tax correspondingly increased by 63%, from Rs 53 million in 2007 to Rs 86 million in 2008. The pure Underwriting Profit comprises more than 47% of the total profit component. The Underwriting Profits also grew by 28%, from Rs 32 million in 2007 to Rs 41 million in the year under review.

“We are very pleased that we have achieved a GWP of over Rs 0.5 billion within a short span of 4 years of operations, and continuously increased underwriting profits, in a difficult market. We are also happy that we continue to maintain a combined ratio well below industry norms,” confirmed CEO Allianz Lanka, Surekha Alles. Allianz Lanka attributes its strong performance to the implementation of several core business strategies and selective risk management and underwriting practices.

Last year was an eventful one for the fully owned local subsidiary of German financial services conglomerate Allianz, which launched Life business in October end, 2008, by forming a separate company, in keeping with IBSL proposals. Within just two months of operations, the Company achieved a highly commendable GWP of Rs 4.1 million. ”We are proud to say that we are revolutionising Life insurance in Sri Lanka with our unique Life Plan, which is designed to take into account the risk element with a sound investment plan for the entire family. This has brought an exciting new concept into Life insurance in Sri Lanka. The figures speak for the success with which this plan is being received by the Sri Lankan people.”

In keeping with the strategy for expanding business in Sri Lanka, the first provincial branch office was opened in Kurunegala last December, which provides customers in the Wayamba province with the same benefits, facilities and financial security enjoyed by Allianz customers in Colombo.

Impressive

The Sri Lanka subsidiary of Munich-based multinational insurance giant Allianz SE set up General Insurance operations in Sri Lanka in 2005, and has since an impressive track record of achievements, with many ’firsts’ in performance. The success of its General Insurance business in Sri Lanka prompted parent company Allianz SE to explore the viability of setting up Life Operations in the country.

Allianz Lanka is backed by the global strength of Allianz SE, one of the world’s largest financial services providers with experience since 1890, in providing innovative insurance, asset management and banking services to over 80 million customers in more than 70 countries. The Allianz Group is ranked 19th among Fortune 500’s listing of top global corporates in 2007, over half of whom insure with Allianz.

In insurance and asset management the Allianz Group has posted an operating profit of 7.4 billion (Euro) and a Net Income of 4 billion (Euro). This is a very good performance in the current market environment, in which Allianz leads the competition.