Ceylinco Life records pre-tax profit of Rs 7.16 bn in 2018
View(s):Ceylinco Life has reported total income of Rs 29.21 billion for the year ending December 2018, outperforming industry averages in its core business to record premium income of Rs 17.8 billion, an improvement of 13 per cent over the previous year.
The company, in a media release, said investment income had grown 10.83 per cent to Rs 11.39 billion for the year reviewed, an anticipated result in the context of the conditions that impacted on investment returns in 2018.
Profit before tax was Rs 7.16 billion, reflecting an increase of 12.69 per cent after discounting a one-off surplus of Rs 3.4 billion that boosted the profits of 2017, following a regulatory change in the basis of the valuation of life funds.
Profit after tax totalled Rs 5.79 billion, a material reduction consequent to the company’s tax provision increasing four fold in the year under review, from Rs 340 million in 2017 to Rs 1.363 billion in 2018, under the new life insurance tax regime introduced by the government.
Ceylinco Life Chairman R. Renganathan said. “It has been a good year for the company, even though the investment market softened and incomes of our prospective customers continued to be under pressure. Considering these factors, our success in increasing our share of the life insurance market is particularly noteworthy.”
Ceylinco Life’s investment portfolio grew by a robust 12.44 per cent over the 12 months to Rs 103.74 billion as at end December 2018, while total assets increased by 11.28 per cent to Rs 118 billion.
The company’s Life Fund grew to Rs 88.05 billion following a transfer of Rs 6.46 billion during the year.