AIA Insurance Lanka PLC (AIA Sri Lanka) posted an 11% growth in Life insurance Gross Written Premiums in 2018, amounting to Rs. 12,739 million. The Company recorded an after-tax profit of LKR 4,116 million during 2018 compared to the restated result of Rs. 13,440 million in 2017.
The restated 2017 result includes a One-Off Surplus of LKR 6,081 million that arose from the adoption of the Risk Based Capital solvency regime introduced by the Insurance Regulatory Commission of Sri Lanka which came into effect from 1 January 2016. This amount is held as a Restricted Regulatory Reserve on the Consolidated Statement of Financial Position.
The operating performance of the business remained steady and major drivers of the 2018 results are the upward shift in market interest rates which reduced the after tax profit and the creation of a deferred tax asset. “The 10 year bond yield raised 172 basis points in 2018 compared to a 230 basis point fall in 2017 which reduced net profit,” Chairman AIA Sri Lanka William Lisle, said.
The deferred tax asset of LKR 2,537 million was created as a result of the move to a surplus based taxation regime that came into effect from 1 April 2018 with the legislating of the Inland Revenue Act 2017. This recognises that carried forward tax losses can be used to off-set future tax payments.
The Board of Directors adopted the resolution to recommend the distribution of a first and final dividend of LKR 25.00 per share from the profits earned by the Company during 2018 for approval by the shareholders at the Annual General Meeting of the Company scheduled for March 27, 2019.
The Board of Directors adopted the resolution to recommend the distribution of a first and final dividend of LKR 25.00 per share from the profits earned by the Company during 2018 for approval by the shareholders at the Annual General Meeting of the Company scheduled for 27 March 2019.
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