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Sri Lanka’s Q3 2024 Insurance Premiums Rise 16.5%, Profit Drops

by Celia

The Sri Lankan insurance sector recorded a strong performance in the third quarter of 2024, with gross written premiums (GWP) reaching Rs. 237.4 billion, a 16.5% increase compared to the same period last year, according to data from the Insurance Regulatory Commission of Sri Lanka (IRCSL).

The life insurance segment led the growth, with a notable 19.3% rise in GWP, totaling Rs. 131.2 billion. Meanwhile, general insurance saw a more modest increase of 13.3%, reaching Rs. 106.2 billion.

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The total assets of the industry stood at Rs. 1.15 trillion by the end of Q3 2024, reflecting a 5.75% year-on-year (YoY) growth from Rs. 1.09 trillion in Q3 2023. Life insurance assets increased by 10.5% to Rs. 873 billion, whereas general insurance assets saw a slight decrease, falling by 6.9% to Rs. 279.1 billion.

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Claims for the quarter also rose, with total claims increasing by 6.15% YoY to Rs. 109 billion. Life insurance claims saw a significant uptick, growing by 11.2% to Rs. 62.2 billion, while general insurance claims grew marginally by 0.11% to Rs. 46.8 billion.

However, despite the positive growth in premiums and assets, the industry experienced a decline in profitability. The total profit before tax (PBT) for the sector decreased by 8.31% YoY, amounting to Rs. 33.4 billion. The life insurance segment’s PBT fell by 6.31% to Rs. 18.4 billion, and general insurance saw a more substantial drop of 10.64%, with PBT reaching Rs. 15 billion.

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As of 30 September 2024, there were 82 insurance brokering firms registered with the IRCSL.

This data underscores the mixed performance of Sri Lanka’s insurance industry in Q3 2024, with strong growth in premiums and assets tempered by a decline in profitability.

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