Softlogic Life recorded another quarter of robust financial performance in a challenging business environment, posting Gross Written Premium (GWP) of Rs. 7.2 billion during the first three months ending March 31, 2024. (1QFY24).
The top-line growth is an increase of 20% compared to 3% during the corresponding period of last year.
The burdens heaped on customers amidst numerous economicdifficulties have been alleviated somewhat due to having purchased insurance where Softlogic Life has steadfastly supported its policyholders during Q1 as well, demonstrating an unwavering commitment to meeting all obligations whilst also seeking to enhance customer benefits.
The Company has demonstrated its full commitment to policyholders by paying out claims and benefits of Rs. 3.4 billion for the quarter, continuing from Rs. 12.8 billion that was paid during 2023, underscoring Softlogic Life’s resolve to uphold its said promise to all policyholders.
Profit after tax (PAT) rose to Rs. 854 million, an increase of 70% YoY and Profit before tax (PBT) grew by 46% compared to last year to stand at Rs. 1.2 billion. Total assets of the Company stood at Rs. 51.8 billion, while total equity was recorded at Rs. 12.8 bn.
Financial investments of the company stood at Rs. 43.5 billion which is 84% of the total assets of the company. The company recorded a Return on Equity (ROE) of 23.5% whilecontinuing to maintain a Capital Adequacy Ratio (CAR) of 367% as at December 2023 which is well above the regulatory requirement of 120%.
Standing tall as the second-largest life insurer in the market, Softlogic Life’s growth story has been exceptional. When comparing the company’s growth in the last 10 years, Softlogic Life reported a 10-year GWP Compound Annual Growth Rate (CAGR) of 26% compared with the industry’s 10-year GWP CAGR growth of 14%.
Softlogic Life continues to boost insurance coverage across Sri Lanka, with over 700,000 active policies while protecting over 1.3 mn individual lives.
Chairman Ashok Pathirage said, “The ongoing challenges have been a true test for Softlogic Life to showcase resilience, responsiveness and innovation. Our distribution model, strategic initiatives and the robust execution of those strategies, process reengineering efforts backed by digital technologies to ensure overall efficiency and business continuity has helped the company outdo last quarter’s results and drive strong performance during this quarter.”
Managing Director Iftikar Ahamed said, “We continue to see great prospects for Life and Health insurance in the market and are always at the forefront of trying to see how better we can serve our customers.
We have come through many difficulties and remained resilient, taking all possible measures to ensure business sustainability.
“We have already had a great start to 2024 and I am confident that our resilient and proactive attitude will continue to drive the success of Softlogic Life for the remainder of this year as well,” he said.
