Softlogic Life’s gross written premium (GWP) has reached Rs. 14.5 billion for the first six months ending 30 June (2Q FY24), with an increase in top-line growth of 17% compared to the corresponding period last year.
Profit-after-tax (PAT) for the period in review rose to Rs. 2.1 billion, compared to Rs. 1 billion in the first half last year.
This is an increase of 104% y-o-y (year-on-year) and profit-before-tax (PBT) also grew by 91% compared to the same period last year to stand at Rs. 2.9 billion.
The company’s total assets stood at Rs. 55.1 billion, while total equity was recorded at Rs. 14.4 billion.
Furthermore, the company’s financial investments stood at Rs. 47 billion which is 85% of the total assets of the company.
The company recorded a return on equity (ROE) of 23.5% while continuing to maintain a capital adequacy ratio (CAR) of 367% as at December 2023, in comparison to the regulatory requirement of 120%.
Additionally, the company paid out claims and benefits of Rs. 6.8 billion to its policyholders during the first half of this year continuing from the substantial Rs. 3.4 billion claims paid during the last quarter.
The company reported a 10-year compound annual growth rate (CAGR) of 26% of GWP, compared to the industry’s 10-year GWP CAGR growth of 14%.
With around 750,000 active policies outstanding as at 30 June, Softlogic Life continues to insure more than 1.5 million Sri Lankans.
Softlogic Life Insurance PLC Chairman Ashok Pathirage said: “In the face of a number of obstacles and a challenging business environment, we have achieved good growth, solidifying our status as the second-largest life insurance provider in Sri Lanka with top-line growth of 17% by the end of Q2 of 2024. This success is a testament to our resilient strategies and unwavering commitment to excellence, allowing us to navigate numerous obstacles and continue delivering value to our stakeholders.”
During the same quarter, the company announced a Rs. 6 billion share buyback at Rs. 102.40 per share for up to 58,593,750 shares of the current 375,000,000 shares in issue.
This move is on the back of a period of strong growth and profitability, where the company aims to optimse capital and enhance shareholder value, leveraging its strong financial performance based on a favourable low-interest-rate environment.
Softlogic Life Insurance PLC Managing Director Iftikar Ahamed said: “As we navigate the evolving business landscape, Softlogic Life remains steadfast in our commitment to being the best in all aspects of our business and delivering premium value to our policyholders and other stakeholders. We see the future as an exciting phase with the advent of technology – especially AI – that is expected to hugely influence business strategy and the way insurance works. We are committed to exploring all ways and means by which we can improve and enhance our services to protect all Sri Lankans. We are looking to a strong 2024 on the back of a momentous first half of the year.”