ARPICO INSURANCE PLC - Reports LKR 625mn loss for the FY2023

Based on the provided context information, here is a detailed analysis of the latest financial status and future outlook of Arpico Insurance PLC as of the end of December 2023:

Latest Financial Status as of December 2023:

- Net Assets Per Share: The unaudited net assets per share as of December 2023 stood at LKR 22.21, which is a decrease from the audited figure of LKR 31.20 in 2022.
- Market Price Per Share: The market price per share saw a highest price of LKR 22.50 and a lowest price of LKR 22.50 in 2023, indicating a stable market price in that period.
- Total Comprehensive Income: The total comprehensive income for the period ending 30th September 2023 was LKR 325,451,298, which includes a profit for the period of LKR 132,928,435 and other comprehensive income, net of tax, of LKR 192,522,863.
- Gross Written Premium: There was a decrease in gross written premium from LKR 564,586,267 in 2022 to LKR 434,817,499 in 2023.
- Investment Income: Investment income increased from LKR 123,813,762 in 2022 to LKR 145,718,897 in 2023.
- Market Capitalization: The market capitalization as of 30th September 2023 was LKR 1,688,875,379.
- Public Shareholding: The public shareholding remained at 10%, with 6,630,404 shares.

Arpico Insurance PLC, appointed industry veteran Kelum Senanayake as its Chief Executive Officer from 1 March 2021. He Made the history as the first Chief Executive being a MDRT achiever.  Since his appointment company has performed poorly. Arpico Insurance PLC under his  watch reported a loss of LKR 625mn for the financial year of 2023 (Unaudited), whilst all other insurance companies have shown remarkable profits during the period.

Future Outlook:

While the context does not provide explicit future projections, we can infer some aspects of the future outlook based on the data:
Market Stability: The stable market price per share at the end of 2023 suggests a level of market confidence in the company’s stability.
Investment Income Growth: The increase in investment income could indicate effective investment strategies that may continue to benefit the company if sustained.

Challenges in Premium Growth: The decrease in gross written premium may suggest challenges in premium growth, which could be an area of focus for the company moving forward.

Comprehensive Income: The significant other comprehensive income suggests that the company has profitable investments or assets that may continue to contribute positively to its financial health.
Regulatory Compliance: The company’s compliance with Sri Lanka Accounting Standard “LKAS 34 – Interim Financial Reporting” and the Companies Act No. 07 of 2007 indicates a strong regulatory adherence, which is crucial for maintaining investor trust.

It is important to note that for a complete and accurate future outlook, one would typically look for management discussion and analysis, market trends, competitive analysis, and forward-looking statements from the company, which are not provided in the context information.

This analysis and information is compiled by LankaBIZ (GPT) – Sri Lanka’s First ever AI Assistant for Stock Market and Research. Click below link to ask questions about any listed company in Sri Lanka.
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