Softlogic Life Insurance : Quarterly Financial Report as at 31st December 2021 – marketscreener.com
INTERIM FINANCIAL STATEMENTS – FOR THE PERIOD ENDED 31ST DECEMBER 2021
Dear Shareholders
Softlogic Life Insurance PLC recorded a superior performance in a pandemic impacted business landscape, posting Gross Written Premium (GWP) of Rs. 20,053 million for the year ended 31 December 2021 with an increase in top-line growth of 28% compared to the corresponding period of the previous year. The increase in GWP of 4,393 million is the highest recorded by any Company in the Life Insurance Industry for the financial year. Profit after tax (PAT) for the financial year 2021 rose by Rs. 583 million, an increase of 38% YoY. The PAT includes Rs. 232 million one off deferred tax asset reversal due to the tax rate change from 28% to 24% announced at the beginning of 2021. Excluding this one-off item, the Company recorded PAT of 2,337 million. Profit before tax (PBT) grew by 39% compared to last year at Rs. 2,130 million.
Continuing its strong growth momentum following 25% growth in 2020 -the first year of the pandemic, 25% in 2019 -the year that was marred by the Easter attacks, the Company reported a 10-year Compound Annual Growth Rate (CAGR) of 29% of GWP, versus estimated industry 10-year GWP CAGR growth of 13.5%.
Amidst the challenges posed by the pandemic and disruptions to the usual way of life, the Company performed strongly being ranked as the third-largest life insurance company in Sri Lanka growing estimated market share further to 16% by the end of the year 2021.
The Company has immensely benefited from its diverse distribution channels and modern insurance products that now cover over 2 million Sri Lankan lives whilst using technology to the fullest to power its operations and deliver unparalleled service to policyholders.
The deferred tax adjusted Return on Equity was reported at 23.2% compared to 21.3% in the previous period and recurring return on equity is 25.8% for 2021.The Recurring Earning per share was Rs. 6.23 per share for 2021 compared with Rs. 4.06 per share in 2020. The Company’s operating expense ratio decreased to 19%, where it stood at 22% a year ago due to prudent and efficient expense management initiatives adopted. As at 31 December 2021, Softlogic Life maintained a healthy Capital Adequacy Ratio (CAR) of 395%, well above the regulatory CAR requirement of 120%.
The financial investments of the Company grew by 25% from the figures reported at the financial year end 2020 and it was the main contributor to increase the total assets base of the Company by Rs.6,138 million during the period under review. Meanwhile, the Company’s insurance contract liabilities recorded a growth of 23% from the level reported at the end of 2020.
The pandemic has been a true test for Softlogic Life to showcase resilience and the effectiveness of our strategies, responsiveness, and innovation. Most importantly our commitment to deliver on claims which is that “moment of truth” for any policyholder. The Company continues to track its claim settlements on a weekly basis thereby ensuring that more than 85% of claims are paid in one single day. The Company paid 6.4Billion gross claims that included 1.1Billion in COVID 19 related Health and Death claims during the year.
As a testimonial to accountability and transparency, the dynamic young company dominated CA Sri Lanka’s 56th Annual Report Awards, with a sweeping win of six major awards including Silver Award for Overall Excellence in Annual Financial Reporting beating the country’s giant conglomerates who have thus far dominated the top positions for years and years. Further the company clinched the Overall Gold Trophy for its Annual Report, themed ‘One Lankan’ including three more awards at CMA Integrated Reporting awards ceremony.
The insurance business has now been set up in a robust and scalable manner enabling this unique business model to be implemented in overseas markets that have immense potential. Initiatives in Bangladesh and the Far East are now being pursued.
Sgd.
Ashok Pathirage
Chairman
09th February 2022
SOFTLOGIC LIFE INSURANCE PLC
INCOME STATEMENT
For the year ended 31 December
Note
2021
2020
Change
Rs. ‘ 000
Rs. ‘ 000
%
Un-audited
Audited
Gross written premiums
5
20,053,302
15,660,116
28
Premiums ceded to reinsurers
(1,857,795)
(1,872,616)
(1)
Net earned premiums
18,195,507
13,787,500
32
Other revenue
Net finance income
2,355,097
1,634,453
44
Net realised gains
392,206
171,253
129
Net fair value gains
7,560
464,044
(98)
Other operating income
20,766
6,364
226
Total other revenue
2,775,629
2,276,114
22
Total net revenue
6
20,971,136
16,063,614
31
Net benefits, claims and expenses
Net insurance benefits and claims paid
(5,965,164)
(3,545,807)
68
Net change in insurance claims outstanding
63,096
(20,990)
(401)
Change in insurance contracts liabilities
(4,143,426)
(3,599,969)
15
Underwriting and net acquisition cost (Net of reinsurance)
(4,050,033)
(3,269,454)
24
Other operating and administration expenses
(3,726,366)
(3,324,870)
12
Finance cost
(183,569)
(172,177)
7
Total benefits, claims and expenses
(18,005,462)
(13,933,267)
29
Profit before tax
7
2,965,674
2,130,347
39
Income tax expenses
8
(860,806)
(608,864)
41
Profit for the period
2,104,868
1,521,483
38
Profit attributable to;
Owners of the Company
2,104,868
1,521,483
Non controlling interest
–
–
2,104,868
1,521,483
38
Earnings per share
Basic earnings per share (Rs.)
16
5.61
4.06
38
Diluted earnings per share (Rs.)
16
5.61
4.06
38
The Notes form an integral part of these Interim Financial Statements.
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 31 December
2021
2020
Change
Rs. ‘ 000
Rs. ‘ 000
%
Un-audited
Audited
Profit for the period
2,104,868
1,521,483
38
Other comprehensive income
Items that will not be reclassified to income statement
Equity investments at FVOCI – net change in fair value
(127,603)
(235,618)
Equity investments at FVOCI – net change in fair value – Life fund
(27,637)
125,442
Re-measurement gains / (losses) on defined benefit liabilities
(10,102)
4,648
Revaluation of Land and Building
37,025
–
Related tax / deferred tax
–
–
(128,317)
(105,528)
22
Items that are or may be reclassified subsequently to income statement
Debt investments at FVOCI – net change in fair value
Debt investments at FVOCI – net change in fair value – Life fund Debt investments at FVOCI – reclassified to income statement
Related tax / deferred tax
(43,380)
31,221
(348,601)
255,885
5,113
14,267
–
–
(386,868)
301,373
(228)
Total other comprehensive income for the period, net of tax
(515,185)
195,845
(363)
Total comprehensive income for the period, net of tax
1,589,683
1,717,328
(7)
Total comprehensive income attributable to:
Owners of the Company
1,589,683
1,717,328
Non – controlling interests
–
–
1,589,683
1,717,328
(7)
The Notes form an integral part of these Interim Financial Statements.
SOFTLOGIC LIFE INSURANCE PLC
INCOME STATEMENT
For the three months ended 31 December
2021
2020
Change
Rs. ‘ 000
Rs. ‘ 000
%
Un-audited
Audited
Gross written premiums
5,720,538
4,768,212
20
Premiums ceded to reinsurers
(491,519)
(476,438)
3
Net earned premiums
5,229,019
4,291,774
22
Other revenue
Net finance income
660,125
503,397
31
Net realised gains
123,272
22,862
439
Net fair value gains
17,306
13,899
25
Other operating income
3,305
2,436
36
Total other revenue
804,008
542,594
48
Total net revenue
6,033,027
4,834,368
25
Net benefits, claims and expenses
Net insurance benefits and claims paid
(1,915,434)
(1,017,626)
88
Net change in insurance claims outstanding
49,757
(28,846)
(272)
Change in insurance contracts liabilities
(1,097,777)
(593,346)
85
Underwriting and net acquisition cost (Net of reinsurance)
(969,275)
(839,749)
15
Other operating and administration expenses
(1,113,422)
(973,652)
14
Finance cost
(94,335)
(37,874)
149
Total benefits, claims and expenses
(5,140,486)
(3,491,093)
47
Profit before tax
892,541
1,343,275
(34)
Income tax expenses
(198,570)
(358,488)
(45)
Profit for the period
693,971
984,787
(30)
Profit attributable to;
Owners of the Company
693,971
984,787
Non controlling interest
–
–
693,971
984,787
(30)
Earnings per share
Basic earnings per share (Rs.)
1.85
2.63
(30)
Diluted earnings per share (Rs.)
1.85
2.63
(30)
The Notes form an integral part of these Interim Financial Statements.
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Softlogic Life Insurance plc published this content on 09 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2022 11:08:10 UTC.
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Sales 2020
16 057 M
79,3 M
79,3 M
Net income 2020
1 521 M
7,51 M
7,51 M
Net Debt 2020
3 274 M
16,2 M
16,2 M
P/E ratio 2020
8,58x
Yield 2020
7,18%
Capitalization
55 688 M
275 M
275 M
EV / Sales 2019
1,09x
EV / Sales 2020
1,02x
Nbr of Employees
761
Free-Float
23,6%
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