Co-operative Insurance Company PLC (CICPLC) recently released its latest results for the first quarter of 2022, placing itself on a stronger position with an impressive growth of 31 percent compared to the same period of the previous year, amidst many macroeconomic difficulties.
During 1Q22, the company recorded a net written premium growth of over 35 percent, along with a market share growth of over fivepercent 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 percent.
Co-operative Insurance Chairman Susil Weerasekara said, “During the first quarter of this year, we proved our commitment to all of our stakeholders with unstoppable growth, diversification, sustainability, and the retention of customer loyalty.
“We achieved a much stronger performance, all while the entire industry faced instability with unavoidable lockdowns and economic instabilities, and there is no doubt that this momentum will be carried forward to oncoming quarters, and years,” he said.
Demonstrating its improved and strengthened financial position, Co-operative Insurance shared the growth with shareholders through a total dividend payout of Rs.280mnin 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 percent in 2021 to Rs. 810 mn, surpassing Rs. 695 mn from the previous year. This growth is a culmination of the 301 percent profit hike recorded by Cooplife, and the Profit After Tax (PAT) of Rs. 631 mn gained by CICPLC.
For the financial year which ended on December 31, 2021, the company recorded a 2.7 percent increase in its gross written premium (GWP), along with a 3.5 percent increase in its net earned premiums, while settling claims totaling over Rs. 2.4 bn during this period.
The company fared well in the General Insurance space with a 41.6 percent increase in premium income for Non Motor, along with a 8.5 percent 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. Co-operative Insurance Managing Director Udaya Kumara said, “This positive growth trajectory was achieved despite the weakening of the country’s entire general insurance industry, which was a result of reduced revenue during lockdowns.”
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.