Softlogic Life records Rs.23bn GWP in FY22 amid tough macroeconomic challenges

„Records top-line growth of 15%; PAT grows 27% to Rs.2.7bn „Ranked as second largest in life insurance market „Pays claims to the tune of Rs. 8.3bn

Softlogic Life recorded a superior full year performance in a crisisaffected business landscape, posting Gross Written Premium (GWP) of Rs.23,083 million for the year ended 31 December 2022 with an increase in top-line growth of 15 percent compared to the corresponding period of last year.

The company has stood firmly with its policyholders in the face of the tough macroeconomic conditions, paying claims of Rs. 8,264 million for the period.

During the period in review, Softlogic Life’s market share is at 16.87 percent, in comparison to 16.08 percent as of 31 December 2021. The market share increase continues to rank Softlogic Life as the second-largest in the life insurance market, overtaking much older players to establish strong growth momentum. Compared to the estimated Industry GWP growth, which was 9.6 percent during 2022, Softlogic Life recorded GWP growth of 15 percent.

The company reported a 10-year Compound Annual Growth Rate (CAGR) of 28 percent of GWP, while the industry 10-year GWP CAGR growth was at 14 percent. Softlogic Life also notes that its contribution to increasing insurance penetration in the country has increased during the period in review with133, 872 policies issued, insuring more than 1.5 million Sri Lankan lives.

Profit after tax (PAT) for the period in review rose to Rs. 2,683 million, an increase of 27 percent YOY. Profit before tax (PBT) grew by 36 percent compared to last year at growth of Rs. 1,065 million. The company’s operating expense ratio remained at 22 percent irrespective of the inflation hike during 2022 as a result of prudent and efficient expense management initiatives adopted.

Furthermore, Softlogic Life maintained a healthy Capital Adequacy Ratio (CAR)OF 287 percent, well above the regulatory CAR requirement of 120 percent.

The company recorded impressive return on equity of 25 percent and earnings per share of Rs.7.15 after providing one off provision for impairment. Recurring earnings per share for the year 2022 increased to Rs.12.85 from Rs.5.61 per share.

Commenting on the financial performance of the company, Ashok Pathirage, Chairman of Softlogic Life Insurance PLC said, “Despite numerous challenges in a tough business landscape, we have performed well to maintain our position as the second-largest life insurance company in Sri Lanka, growing our market share further to 16.87 percent by the end of 2022.

These accomplishments were facilitated by the strategies we deployed and the strong execution of those strategies that have enabled the Company to sustain momentum in spite of the prevailing macro challenges.”.

Iftikar Ahamed, Managing Director of Softlogic Life Insurance PLC commented, “For the nation as well as the company, this financial year has been a tough one. However, coupled with the execution of forward-looking business strategies and impressive customer-centric innovations, Softlogic Life has been able to withstand the challenges and deliver exceptional results in this adverse operating environment.

We have seen renewal premium collection exceeding budget which is a phenomenal achievement in the current conditions whilst the combined first year and renewal premium already make our company the market leader.

Our unwavering focus on providing our customers protection benefits, the main stay being health covers, have made us the Insurer of choice for both Personal and Group business as well. We have come through an exceptional 10-year journey and are within sight of the pinnacle of the industry whilst delivering exceptional value to all our stakeholders. We look to the future as a team that has surmounted the unthinkable and come off with flying colours.”