HNB ASSURANCE

LMD 100 Q&A

RANK 64

The corporate sector in Sri Lanka is well positioned to drive growth amidst the evolving political and economic landscape

Q: As Sri Lanka embarks on a fresh chapter in the context of politics and the economy, how ready and geared is the corporate sector to drive growth while overcoming the ripples of past challenges?

Stuart Chapman (SC): The corporate sector in Sri Lanka is well positioned to drive growth amidst the evolving political and economic landscape. Past challenges have tested our resilience, and instilled a sense of adaptability and innovation within us.

The fresh political and economic outlook offers an opportunity for the private sector to play a pivotal role. Driving growth in this new chapter will require collaborative efforts across the private, public and nonprofit sectors. Presenting a united front will help attract investment, boost efficiencies and foster sustainable development for Sri Lanka.

At HNB Assurance and HNB General Insurance, we seek strategic alliances that leverage shared expertise and resources that amplify impact and expand reach.

Additionally, the nature of our business – providing financial security and peace of mind – helps align our strategies with the government’s agenda of fostering financial inclusivity, empowering SMEs and supporting human wellbeing.

Q: What trends do you observe in your sector – and what have you done as a business to optimise some of them? 

SC: A notable trend is the low penetration of insurance in the country, which stands at around one percent of Sri Lanka’s GDP – well below regional and global averages. This highlights an opportunity to educate the market, introduce innovative products, and bring more individuals and businesses under the umbrella of protection.

We have been proactive in addressing this gap by embracing a customer-centric strategy. By expanding access to protection through our distribution channels – including digital platforms – we have formed mutually beneficial partnerships that accelerate growth and expand reach.

We believe that using the right technological infrastructure is essential for growth as it boosts efficiency and lays the groundwork for future expansion. Advanced analytics can help us better understand customer behaviour, identify untapped markets and develop products tailored to their needs. This also allows us to refine risk assessment and pricing, ensuring that our offerings are fairly priced and competitively differentiated.

Q: What are your company’s main goals and objectives for financial year 2024/25?

Lasitha Wimalaratne (LW): In 2022, we set an ambitious goal to achieve a 10 percent market share by 2026 and I’m proud to say we’re on track to reach this milestone. Over the past three years, we have maintained a growth rate of over 20 percent. As of the third quarter of this year, we continue to maintain this momentum, outperforming industry averages despite external challenges.

Our success is reflected in both our financial and operational performances including growth in new customer acquisitions, increased policy persistency levels, and record-breaking contributions from our agency and partnership channels.

Our pillars of focus this year were protection, persistency and productivity.

Protection meant enhancing our offerings and improving our reach to provide policyholders with security and peace of mind. Persistency focussed on building long-term customer relationships, ensuring trust and retention overtime. Productivity aimed at maximising team efficiency and effectiveness, enabling us to deliver exceptional service and strong business results.

Q: In the wake of the brain drain, what strategies have you put in place to retain talent and overcome the challenges that many businesses are facing? 

LW: At HNB Assurance, we foster a positive and inclusive culture that prioritises employee wellbeing and career development. This has earned us two awards that we are incredibly proud of – Great Place To Work (GPTW) and Women Friendly Workplace.

Additionally, we were recently honoured as one of the most outstanding ‘mom-friendly’ workplaces, emphasising our commitment to the work-life balance. Our extended maternity and paternity leave policies ensure that our employees feel supported during important life events.

We understand that talent comes in many forms, which is why we offer programmes for employees to showcase their skills through talent shows, sports tournaments, training programmes, leadership opportunities and innovation challenges.

Our flexible work policies – including work from home (WFH) arrangements and benefits such as caregiver leave and professional reimbursements – support a healthy work-life balance and enable employees to enjoy a work environment where they feel valued, supported and motivated to grow.

REVENUE (RS. M)
23,265

REVENUE CHANGE
27%

PROFIT AFTER TAX (RS. M)
1,765

PROFIT CHANGE
(4)%

TOTAL ASSETS (RS. M)
51,263

SHAREHOLDERS’ FUNDS (RS. M)
10,277

MARKET CAP (RS. M)
8,490

EARNINGS PER SHARE (RS.)
11.76

PRICE EARNINGS RATIO
4.81

EMPLOYEES
1,453

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Telephone: Assurance Line – 1301 | Email: info@hnbassurance.com | Website: www.hnbassurance.com