Amidst challenging economic conditions, People’s Insurance PLC has continued to demonstrate strong financial health in 2024, backed by effective cost management, prudent underwriting, and solid capital buffers. Despite fluctuations in inflation and interest rates, the company has maintained profitability and stability, positioning itself for continued growth.
For the year ended 31st December 2024, the company recorded a Gross Written Premium (GWP) of Rs. 6,249.3 million, reflecting an 8.4% growth from Rs. 5,762.7 million in 2023. This achievement showcases the company’s ability to navigate economic challenges while expanding its market share.
The company’s profit before tax for 2024 stood at Rs. 701.6 million, compared to Rs. 784.5 million in 2023. The profit after tax for the period under review was Rs. 429.4 million, marking a decrease from Rs. 521.6 million in 2023. Despite the significant drop of investment income by 17%, the company’s profitability levels remain strong.
The Motor Insurance segment remained the largest contributor to the company’s GWP, accounting for 75% of the total, though it experienced a modest growth of 7% year-on-year. The Fire Insurance segment showed exceptional growth, increasing by 15% and contributing 11% to the overall GWP, underlining the company’s success in diversifying its portfolio.
Despite a marginal increase in claims cost of 0.13% reaching Rs. 3,130 million, operating expenses rose by 10% reaching Rs. 1,705 million, increase from Rs. 1,547 million in 2023. This rise was driven mainly by higher salary costs associated with the expansion of the sales unit, technology maintenance, and infrastructure enhancements, all essential for future growth and improved service delivery.
The company successfully reduced its underwriting loss by 24%, bringing it down to Rs. 513.4 million in 2024 from Rs. 675.2 million in 2023. This is a positive indication of better risk management and the effectiveness of strategic initiatives aimed at improving underwriting performance.
The total asset base of the company expanded by 4.5%, reaching Rs. 12.7 billion as of 31st December 2024, compared to Rs. 12.1 billion in 2023. Financial investments grew by 4%, which is a testament to the company’s proactive approach in managing cash flows and optimizing investment returns despite market uncertainties.
Total shareholders’ equity increased by 7%, rising to Rs. 5,638 million in 2024 from Rs. 5,249 million in 2023. Additionally, cash equivalents showed an increase of Rs. 46 million, further emphasizing the company’s strong liquidity position and its ability to optimize investments for long-term growth.
Looking ahead, People’s Insurance PLC remains committed to driving sustainable growth while meeting stakeholder expectations and aligning with its strategic business objectives. The company is well-positioned to continue navigating economic challenges and emerging as a key player in the insurance sector.
