Sri Lanka’s insurance industry experienced mixed performance results in the first quarter, achieving a 7.39% year-on-year (YoY) growth in overall Gross Written Premium (GWP), equivalent to Rs. 5.41 billion, according to data from the Insurance Regulatory Commission of Sri Lanka (IRCSL).
The combined GWP for Long-Term and General Insurance Businesses rose to Rs. 78.59 billion from Rs. 73.12 billion a year earlier. However, this figure reflects a decline from Rs. 128.16 billion recorded in the previous quarter.
The Long-Term Insurance Business saw a significant 19.26% YoY increase, reaching Rs. 40.23 billion compared to Rs. 33.73 billion in the same quarter last year, surpassing the General Insurance Businesses.
Conversely, the General Insurance Business contracted by 2.75% YoY to Rs. 38.36 billion from Rs. 39.44 billion a year ago. Within this period, the GWP for key categories such as motor, fire, and marine insurance declined, with health insurance being the exception.
Claims incurred by both Long-Term and General Insurance Businesses decreased by 6.97% YoY to Rs. 32.38 billion. Long-Term Insurance claims, including maturity and death benefits, dropped by 4.65% YoY to Rs. 18.32 billion from Rs. 19.13 billion. Similarly, claims in the General Insurance Business, covering Motor, Fire, Marine, and other categories, fell by 9.84% YoY to Rs. 14.06 billion from Rs. 15.6 billion.
The total assets held by insurance companies increased by 10.88% YoY to Rs. 1.1 trillion during the quarter, driven by an 18.54% YoY growth in Long-Term Insurance assets, despite a 7.17% YoY decline in General Insurance assets.
The IRCSL noted that capital levels for the Life Insurance business rose by 11%, while the General Insurance business saw a decrease of 16%. One life insurance company failed to meet the RBC minimum requirements.
Profit Before Tax (PBT) for both Long-Term and General Insurance Businesses grew by 35.06% YoY to Rs. 12.33 billion. The PBT for Long-Term Insurance Business increased by 4.37% YoY to Rs. 6.65 billion, while the General Insurance Business more than doubled its PBT to Rs. 5.67 billion.
At the end of the first quarter, 29 insurance companies operated in Sri Lanka: 15 engaged in Long-Term (Life) Insurance, 13 in General Insurance, and one as a composite company. Additionally, there were 78 registered insurance brokering companies, with their total assets increasing nearly 28% to Rs. 13.24 billion during this period.