HNB Assurance : Interim Financial Statements as of 31-12-2022

Group

Company

As at,

Unaudited

Audited

Unaudited

Audited

31st Dec 2022

31st Dec 2021

31st Dec 2022

31st Dec 2021

Note

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Assets

418,258

260,442

Property, Plant and Equipment

282,884

141,390

Right of Use Assets

376,579

395,148

343,824

362,336

Intangible Assets

61,118

63,180

57,054

57,839

Deferred Tax Assets

99,430

291,832

-

273,543

Financial Investments

3

34,624,131

29,094,085

29,844,875

24,667,102

Investment in Subsidiary

-

-

1,150,000

1,150,000

Loans to Life Policyholders

420,914

403,452

420,914

403,452

Reinsurance Receivables

1,044,318

1,072,206

184,249

317,009

Premium Receivables

1,853,670

1,247,997

18,547

7,822

Other Assets

999,838

747,946

713,293

507,528

Insurance Contract - Deferred Expenses

163,995

157,710

-

-

Cash and Cash Equivalents

1,033,305

2,112,745

725,420

1,575,931

Total Assets

41,095,556

35,869,185

33,718,618

29,463,952

Equity and Liabilities

Equity Attributable to the Equity Holders

1,171,875

1,171,875

Stated Capital

1,171,875

1,171,875

Retained Earnings

7,822,715

6,644,680

6,552,433

5,548,813

Available for Sale Reserve

(322,296)

4,009

(138,616)

4,446

Other Reserve

22,358

(11,421)

3,972

(6,614)

Life Policyholders' Available for Sale Reserve Fund

5

(1,277,414)

(67,291)

(1,277,414)

(67,291)

Restricted Regulatory Reserve

6

381,156

381,156

381,156

381,156

Equity Attributable to the Equity Holders

7,798,394

8,123,008

6,693,406

7,032,385

Non-Controlling Interest

-

-

-

-

Total Equity

7,798,394

8,123,008

6,693,406

7,032,385

Liabilities

24,582,641

24,582,641

Insurance Contract Liabilities - Life Insurance

7

20,342,757

20,342,757

Insurance Contract Liabilities - General Insurance

8

4,181,588

3,735,922

-

-

Employee Defined Benefit Liabilities

236,424

239,167

142,692

137,328

Current Tax Liabilities

253,810

62,168

209,338

19,871

Reinsurance Creditors

959,693

1,085,512

227,512

453,054

Lease Creditors

410,719

421,838

376,926

390,374

Other Liabilities

2,406,748

1,747,148

1,384,408

1,034,819

Bank Overdrafts

265,539

111,665

101,695

53,364

Total Liabilities

33,297,162

27,746,177

27,025,212

22,431,567

Total Equity and Liabilities

41,095,556

35,869,185

33,718,618

29,463,952

Rose Cooray

Ashoka Goonesekere

Chairperson

Director

Colombo, Sri Lanka

17th February 2023

Group

Company

Change

For the Year Ended 31st December,

Unaudited

Audited

Unaudited

Audited

Group Company

2022

2021

2022

2021

Note

Rs. '000

Rs. '000

Rs. '000

Rs. '000

%

%

Gross Written Premium

9

15,637,736

12,646,947

8,911,460

7,091,470

24

26

Premium Ceded to Reinsurers

(2,164,702)

(1,648,861)

(473,012)

(355,537)

31

33

Net Written Premium

13,473,034

10,998,086

8,438,448

6,735,933

23

25

Net Change in Reserves for Unearned Premium

(385,557)

(242,252)

-

-

59

-

Net Earned Premium

13,087,477

10,755,834

8,438,448

6,735,933

22

25

Other Revenue

Interest and Dividend Income

10

4,541,682

2,555,274

3,972,636

2,311,120

78

72

Net Realised Gains

390,099

52,921

105,376

50,109

637

110

Net Fair Value (Losses)/Gains

(66,383)

79,128

(68,663)

49,484

(184)

(239)

Fee and Commission Income

272,223

225,738

54,394

77,025

21

(29)

Other Income

36,442

5,551

33,223

2,766

556

1,101

Total Other Revenue

5,174,063

2,918,612

4,096,966

2,490,504

77

65

Net Income

18,261,540

13,674,446

12,535,414

9,226,437

34

36

Net Benefits, Claims and Expenses

Net Insurance Benefits and Claims

(5,578,997)

(4,223,290)

(2,169,527)

(1,646,088)

32

32

Change in Contract Liabilities - Life Fund

(4,340,103)

(3,249,356)

(4,340,103)

(3,249,356)

34

34

Other Operating and Administration Expenses

(4,000,490)

(2,892,824)

(2,483,649)

(1,694,018)

38

47

Underwriting and Net Acquisition Costs

(1,821,540)

(1,456,258)

(1,437,045)

(1,098,207)

25

31

Finance and Other Insurance Related Costs

(134,488)

(104,340)

(111,424)

(86,557)

29

29

Total Benefits, Claims and Other Expenses

(15,875,618)

(11,926,068)

(10,541,748)

(7,774,226)

33

36

Profit Before Taxation

2,385,922

1,748,378

1,993,666

1,452,211

36

37

Income Tax Expense

11

(555,398)

(524,730)

(510,046)

(451,712)

6

13

Profit for the Year

12

1,830,524

1,223,648

1,483,620

1,000,499

50

48

Other Comprehensive Income, Net of Related Tax

Items that are or may be reclassified to profit or loss

- Net Change in Fair Value of Available For Sale Financial Assets

(1,647,992)

(914,208)

(1,386,078)

(826,914)

80

68

- Realised Gains Transferred to Income Statement

-

(9,490)

-

(9,490)

100

100

- Amortisation of AFS Reserve on Reclassification

32,893

-

32,893

-

100

100

- Net Change in Fair Value of Available For Sale Financial Assets

Transferred to Life Policyholders' Available For Sale Reserve Fund

1,210,123

825,224

1,210,123

825,224

47

47

- Related Tax

11

78,671

8,729

-

-

801

-

Items that will never be reclassified to profit or loss

- Actuarial Gains on Defined Benefit Plans

37,945

44,140

10,586

27,302

(14)

(61)

- Related Tax

11

(4,166)

(4,041)

-

-

3

-

Total Other Comprehensive Income for the Year, Net of Related Tax

(292,526)

(49,646)

(132,476)

16,122

489

(922)

Total Comprehensive Income for the Year

1,537,998

1,174,002

1,351,144

1,016,621

31

33

Profit Attributable to:

1,830,524

1,483,620

Equity Holders of the Company

1,223,648

1,000,499

50

48

Non-Controlling Interest

-

-

-

-

-

-

Total Comprehensive Income Attributable to:

Equity Holders of the Company

1,537,998

1,174,002

1,351,144

1,016,621

31

33

Non-Controlling Interest

-

-

-

-

-

-

Basic and Diluted Earnings Per Share (Rs.)

13

12.20

8.16

9.89

6.67

50

48

Stated

Retained

Available

Other

Life

Restricted

Total

Capital

Earnings

for Sale

Reserve

Policyholders'

Regulatory

Equity

Reserve

AFS Reserve

Reserve

Note

Rs. '000

Rs. '000

Rs. '000

Fund

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Balance as at 01st January 2021

1,171,875

5,841,032

93,754

(51,520)

757,933

381,156

8,194,230

Comprehensive Income for the Year

Profit for the Year - Audited

-

1,223,648

-

-

-

-

1,223,648

Other Comprehensive Income for the Year, Net of Related Tax

Net Change in fair value of Available For Sale Financial Assets

-

-

(914,969)

-

-

-

(914,969)

Net Change in fair value of Available For Sale Financial Assets

- transferred to Life Policyholders' Available For Sale Reserve Fund

-

-

825,224

-

-

-

825,224

Actuarial Gains on Defined Benefit Plans

-

-

-

40,099

-

-

40,099

Total Other Comprehensive Income for the Year

-

-

(89,745)

40,099

-

-

(49,646)

Total Comprehensive Income for the Year

-

1,223,648

(89,745)

40,099

-

-

1,174,002

Net Change in fair value of Available For Sale Financial Assets

- transferred from Available For Sale Reserve

-

-

-

-

(825,224)

-

(825,224)

Transactions with owners recorded directly in equity

Distributions to owners of the Parent

Final dividend to equity holders for 2020

-

(420,000)

-

-

-

-

(420,000)

Audited balance as at 31st December 2021

1,171,875

6,644,680

4,009

(11,421)

(67,291)

381,156

8,123,008

Balance as at 01st January 2022

1,171,875

6,644,680

4,009

(11,421)

(67,291)

381,156

8,123,008

Surcharge Tax

16

-

(172,489)

-

-

-

-

(172,489)

Comprehensive Income for the Year

Profit for the Year - Unaudited

-

1,830,524

-

-

-

-

1,830,524

Other Comprehensive Income for the Year, Net of Related Tax

Net Change in fair value of Available For Sale Financial Assets

-

-

(1,536,428)

-

-

-

(1,536,428)

Net Change in fair value of Available For Sale Financial Assets

- transferred to Life Policyholders' Available For Sale Reserve Fund

-

-

1,210,123

-

-

-

1,210,123

Actuarial Gains on Defined Benefit Plans

-

-

-

33,779

-

-

33,779

Total Other Comprehensive Income for the Year

`-

-

(326,305)

33,779

-

-

(292,526)

Total Comprehensive Income for the Year

-

1,830,524

(326,305)

33,779

-

-

1,537,998

Net Change in fair value of Available For Sale Financial Assets

- transferred from Available For Sale Reserve

-

-

-

-

(1,210,123)

-

(1,210,123)

Transactions with owners recorded directly in equity

Distributions to owners of the Parent

Dividend to equity holders for 2021

-

(480,000)

-

-

-

-

(480,000)

Unaudited balance as at 31st December 2022

1,171,875

7,822,715

(322,296)

22,358

(1,277,414)

381,156

7,798,394

Stated

Retained

Available

Other

Life

Restricted

Total

Capital

Earnings

for Sale

Reserve

Policyholders'

Regulatory

Equity

Reserve

AFS Reserve

Reserve

Rs. '000

Rs. '000

Rs. '000

Fund

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Balance as at 01st January 2021

1,171,875

4,968,314

15,626

(33,916)

757,933

381,156

7,260,988

Comprehensive Income for the Year

Profit for the Year - Audited

-

1,000,499

-

-

-

-

1,000,499

Other Comprehensive Income for the Year, Net of Related Tax

Net Change in fair value of Available For Sale Financial Assets

-

-

(836,404)

-

-

-

(836,404)

Net Change in fair value of Available For Sale Financial Assets

- transferred to Life Policyholders' Available For Sale Reserve Fund

-

-

825,224

-

-

-

825,224

Actuarial Gains on Defined Benefit Plans

-

-

-

27,302

-

-

27,302

Total Other Comprehensive Income for the Year

-

-

(11,180)

27,302

-

-

16,122

Total Comprehensive Income for the Year

-

1,000,499

(11,180)

27,302

-

-

1,016,621

Net Change in fair value of Available For Sale Financial Assets

- transferred from Available For Sale Reserve

-

-

-

-

(825,224)

-

(825,224)

Transactions with owners recorded directly in equity

Distributions to owners of the Company

Final dividend to equity holders for 2020

-

(420,000)

-

-

-

-

(420,000)

Audited balance as at 31st December 2021

1,171,875

5,548,813

4,446

(6,614)

(67,291)

381,156

7,032,385

Balance as at 01st January 2022

1,171,875

5,548,813

4,446

(6,614)

(67,291)

381,156

7,032,385

Comprehensive Income for the Year

Profit for the Year - Unaudited

-

1,483,620

-

-

-

-

1,483,620

Other Comprehensive Income for the Year, Net of Related Tax

Net Change in fair value of Available For Sale Financial Assets

-

-

(1,353,185)

-

-

-

(1,353,185)

Net Change in fair value of Available For Sale Financial Assets

- transferred to Life Policyholders' Available For Sale Reserve Fund

-

-

1,210,123

-

-

-

1,210,123

Actuarial Gains on Defined Benefit Plans

-

-

-

10,586

-

-

10,586

Total Other Comprehensive Income for the Year

-

-

(143,062)

10,586

-

-

(132,476)

Total Comprehensive Income for the Year

-

1,483,620

(143,062)

10,586

-

-

1,351,144

Net Change in fair value of Available For Sale Financial Assets

- transferred from Available For Sale Reserve

-

-

-

-

(1,210,123)

-

(1,210,123)

Transactions with owners recorded directly in equity

Distributions to owners of the Company

Dividend to equity holders for 2021

-

(480,000)

-

-

-

-

(480,000)

Unaudited balance as at 31st December 2022

1,171,875

6,552,433

(138,616)

3,972

(1,277,414)

381,156

6,693,406