The insurance industry in Sri Lanka reported a total Gross Written Premium (GWP) of Rs. 78,589 million for Long-Term and General Insurance Businesses for the period ending March 31, 2024, reflecting a 7.39% increase compared to Rs. 73,178 million in Q1 2023. This marks a premium growth of Rs. 5,411 million year-on-year.
The GWP for Long-Term Insurance Business reached Rs. 40,230 million in Q1 2024, up 19.26% from Rs. 33,733 million in Q1 2023. Conversely, the GWP for General Insurance Business declined by 2.75%, amounting to Rs. 38,358 million compared to Rs. 39,445 million in the previous year.
The total assets of insurance companies increased by 10.88%, rising to Rs. 1,098,988 million at the end of Q1 2024 from Rs. 991,126 million at the end of Q1 2023. Long-Term Insurance Business assets grew by 18.54% to Rs. 824,890 million, while General Insurance Business assets decreased by 7.17% to Rs. 274,098 million.
Investments in Government Debt Securities for Long-Term Insurance Business rose by 34.20% to Rs. 450,070 million, representing 60.39% of total investments, while General Insurance Business investments increased by 14.52% to Rs. 102,088 million, representing 59.93% of total investments. Overall, the total investment in Government Securities for both businesses grew by 30.07% to Rs. 552,158 million.
Claims incurred by both Long-Term and General Insurance Businesses fell by 6.97% to Rs. 32,384 million in Q1 2024 from Rs. 34,812 million in Q1 2023. Long-Term Insurance claims, including maturity and death benefits, amounted to Rs. 18,320 million, while General Insurance claims, covering Motor, Fire, Marine, and other categories, amounted to Rs. 14,064 million.
Profit Before Tax (PBT) for both insurance sectors increased by 35.06% to Rs. 12,332 million in Q1 2024 from Rs. 9,131 million in Q1 2023. The PBT for Long-Term Insurance Business rose by 4.37% to Rs. 6,655 million, while the PBT for General Insurance Business saw a significant growth of 106.11%, reaching Rs. 5,677 million.