Co-operative Insurance records 31% growth in 1Q22

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One of Sri Lanka’s leading insurers, Co-operative Insurance Company PLC (CICPLC) recently released its latest results for the first quarter of 2022, placing itself in a stronger position, with an impressive growth of 31% compared to the same period of the previous year, amid many macroeconomic difficulties.

During 1Q22, the company recorded a net written premium growth of over 35%, along with a market share growth of over 5% compared to the previous year’s first quarter, ranking it among the highest growing companies in the industry.

The company also recorded an increase in investments and is equipped with a strengthened asset portfolio, recording total assets growth by 21%.

Demonstrating its improved and strengthened financial position, Co-operative Insurance shared the growth with shareholders through a total dividend payout of Rs 280 million in the previous year. Earnings per share (EPS) is up at Rs 0.54 compared to the previous year’s Rs 0.48.

Consolidated Group profit grew by 16.5% in 2021 to Rs 810 million, surpassing Rs 695 million from the year before. This growth is a culmination of the 301% profit hike recorded by Cooplife, as well as the profit after tax (PAT) of Rs 631 million gained by CICPLC.

For the financial year which ended on 31 December 2021, the company was able to record an impressive 2.7% increase in its gross written premium (GWP), along with a 3.5% increase in its net earned premiums, while settling claims totalling over Rs 2.4 billion during this period.

The company fared well in the General Insurance space, with a 41.6% increase in premium income for Non Motor, along with an 8.5% GWP increase in Life Insurance, proving the company’s flexibility to adapt to diverse market conditions, despite Motor traditionally being the company’s largest segment.

The company also further enhanced its rural outreach islandwide, accommodating new and existing customers with the introduction of third-party insurance counters in its branches.

Moreover, highlighting its financial sustainability, the company also stands out as one of the very few insurance providers to achieve an underwriting profit – a result of the healthy balance between the premiums earned, expenses, and claim disbursement.

On the cost front, while the company has a minute reduction in staff over the financial year, it has been able to maintain top and bottom-line growth, showcasing greater efficiency and the ability to sustain quality growth, while applying prudent cost controls – in response to the prevailing situation in the country.