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Group revenue of LKR 15.2 Bn reported for the full year 2010 recorded a growth of 57%, compared to LKR 9.6 Bn in 2009, crossing the LKR 15 billion mark for the top line performance in 2010. This has been the highest achieved for top line performance in the history of the Company. The commendable growth in revenue was driven by the growth in Gross Written Premia of both the Life and General Insurance business by 49% and investment and other income of 41%.
The impressive growth achieved for top line is reflective of the successful brand migration which resulted in a synergy between the global expertise of AVIVA and the strength of NDB bank, coupled with the re branding and transformation of the agency force as Wealth Planners which in turn resulted in a step change and shift in the strategic direction of the Company. The strategic shift in the back drop of a conducive economic environment led to the impressive growth in top line performance. Strong equity market performance with the ASPI growing by 96% in 2010 mainly contributed to the 42% increase in investment income over prior year.
The cumulative Gross written premium from the Life and General Insurance business recorded a growth of 49% over the prior year, and was largely driven by the growth in the Life business which reported an impressive growth of 68% over the prior year with the General Insurance business reporting a growth of 14 % in a very competitive market environment. The continued momentum and efforts of the wealth planners, and focused aggression of the banc assurance partners combined with Strategic partnerships entered into by the Company delivered a growth in GWP of LKR 3.5 Bn over the corresponding period in 2009.
The Group recorded a post tax profit of LKR 600 Mn for the year with the Company reporting a profit after tax of LKR 602 Mn for the financial year ending 31 December 2010. The Life business contributed a surplus of LKR 328 and the General Insurance business reported a post tax profit of LKR 274 Mn after charging the cost of the investment of LKR 324 Mn in the brand change.
The Company's Net Assets stood at LKR 2,910 million, recording a growth of 13% over the previous year. The Company's Life Policyholders' fund stood at LKR 24,447 million as at 31.12.2010. The Company has declared a first and final dividend of LKR 9 per share for 2010. Company has also declared 15.32% for the Life policyholders as the policy holder dividend. |
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General insurance achieved a solvency margin of 4.09 times the required solvency margin of LKR 421 Mn as at 31.12.2010. The available solvency margin was LKR 1,722 Mn.
In the Life insurance business an Insurer is required to maintain a solvency margin of at least 5% of its Long Term Fund, whereas the Company maintained a solvency margin of 7.5% with a solvency ratio of 1.5. |
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| Group Revenue by Segment - 2010 |
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2010 LKR Mn |
2009 LKR Mn |
| General |
3,033 |
1,893 |
| Life |
12,152 |
7,810 |
| Asset Management |
- |
33 |
| Services |
1 |
5 |
| Inter company eliminations |
- |
(86) |
| Total |
15,187 |
9,655 |
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| Group - 5 Year Summary |
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2010 |
2009 |
2008 |
2007 |
2006 |
| Profit before taxation (LKR Mn.) |
894 |
958 |
605 |
546 |
539 |
| Net profit for the year (LKR Mn.) |
600 |
731 |
464 |
527 |
523 |
| Total revenue (LKR Mn.) |
15,187 |
9,655 |
7,265 |
5,875 |
4,813 |
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| Investor Information |
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2010 |
2009 |
2008 |
2007 |
2006 |
| Return on net assets (%) |
30.72 |
37.12 |
27.20 |
26.97 |
30.92 |
| Net assets per share (LKR) |
96.99 |
85.98 |
74.13 |
67.51 |
58.11 |
| Basic earnings per share (LKR) |
20.01 |
24.35 |
15.46 |
17.57 |
17.45 |
| Dividend per share (LKR) |
9.00 |
12.50 |
3.00 |
9.50 |
8.25* |
| Market price per share as at 31st Dec (LKR) |
280.00 |
178.00 |
115.00 |
150.75 |
133.50 |
| Price earnings ratio (times) |
14.00 |
7.31 |
7.44 |
8.58 |
7.77 |
| Market capitalisation (LKR) |
8,400 |
5,340 |
3,450 |
4,523 |
4,065 |
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| *adjusted for subsequent bonus issues. |
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Financial Information
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