The drop in revenue was driven by reduced sales volumes of investment linked Life products and a continued focus on the prudent pricing of General insurance. Gross Written Premium income of the composite business was Rs. 4,399 million for the first half of the year.
Life GWP amounted to Rs. 3,170 million with conventional products contributing a significant 59%. It is a testimony to the company’s management of the investment cycle via its offering of both investment linked and conventional variants of all its key Life products.
General insurance GWP was Rs. 1,229 million, which was a 15% drop compared to the first half of last year.
The prudent pricing and quality focus of the last two years has resulted in an encouraging improvement in the loss ratio reported by the GI business leading to an overall improvement in the combined operating ratio.
The consolidated profit after tax for the first six months of 2012 was Rs. 163 million, excluding the surplus from the Life business, which is determined annually after the year-end actuarial valuation and included in the audited accounts at the end of the financial year in December.
For the first time, the half year financial statements of the Company and the Group were prepared on Sri Lanka Financial Reporting Standards (SLFRS) compliant basis. Aviva NDB is the first insurer to do so.
Chairman of Aviva NDB T.R. Ramachandran said: “We are confident that improvements in underwriting and claims management will continue to deliver a satisfactory performance over the remainder of the year.”
Managing Director Shah Rouf was equally confident. “Our core strategy for the business remains unchanged and the results are encouraging. A key focus in the second half of 2012 will be on new Life product developments to meet emerging customer needs and an undiminished emphasis on quality GI business,” he said.