Annual Report 2016
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Under Our Care Annual Report 2016 Annual Report 2016 i Under Our Care Service is at the heart of what we do here at Allianz Lanka and we pride ourselves in creating a product and service portfolio that caters to diverse needs and requirements. Even as a brand that has gained respect and acknowledgement on a global scale, we have not lost touch with connecting to our customers on a personal level; one on which we can truly recognise and cater to them in our own efficient and unique way, as they place their trust under our care. Annual Report 2016 1 2 Annual Report 2016 Content 4 Vision, Mission, Guiding Principle & Core Values Allianz Insurance Lanka Ltd. 8 Financial Highlights 67 Directors Report 9 Allianz at a Glance 70 Certification of Incurred but not Reported (IBNR) Reserve 10 About Allianz 71 Independent Auditor’s Report 19 Directors’ Profiles 72 Statement of Financial Position 22 Financial Overview 73 Statement of Profit or Loss and Other Comprehensive Income 28 Statement of Value Added 74 Statement of Changes in Equity 30 Economic Overview 75 Statement of Cash Flows 34 Risk Management 77 Notes to the Financial Statements 39 Compliance at Allianz 42 Integrity is integral to business at Allianz Allianz Life Insurance Lanka Ltd. 46 CEO’s Review 49 Allianz Moments 115 Directors’ Report 53 Sustainability Report 118 Actuary’s Report - Life 56 Cutting-edge technology that keeps us connected 119 Independent Auditors’ Report 58 Human Capital Report 120 Statement of Financial Position 121 Statement of Profit or Loss and Other Comprehensive Income 122 Statement of Changes in Equity 123 Statement of Cash flows 124 Notes to the Financial Statements 155 Ten Year Summary 156 Nine Year Summary 157 Branch network 159 Glossary of Insurance terms 162 Corporate Information Annual Report 2016 3 Vision To be the first choice insurer for customers To be the preferred employer in the insurance industry To be the number one insurer for creating shareholder value Mission As a responsible, customer focused market leader we will strive to understand the insurance needs of consumers and translate them into affordable products that deliver value for money Guiding Principle The customer is our most valuable asset and everything we do is aimed at either winning a customer or retaining a customer 4 Annual Report 2016 Core Values As a responsible, customer focused market We value the highest ethical standards leader we will strive to understand the We apply the highest ethical standards to everything we do. Nothing isinsurance more important needs than of consumersour reputation and for translateintegrity and honesty andthem we willinto work affordable to ensure thatproducts every thatAllianz deliver employee continuallyvalue earns for and money protects our reputation We value commitment to excellence We apply the highest standards of excellence to the products we develop, the services we provide and the relationships we build with our business partners We value respect for individuals We believe every job at Allianz is important. We recognise, respect, and appreciate the contributions of each individual by creating a culture that recognises and values our differences - not only in who we are but also in how we think and the way in which we carry out our responsibilities We value our investment in our people We cultivate an environment that offers employees the opportunity for growth and advancement, personal satisfaction in work accomplishments and the means to share in the Company’s success Annual Report 2016 5 Securing peace of mind a wa y from home Travel for either business or pleasure poses certain risks that could potentially serve as obstacles to an eagerly-awaited vacation. With Allianz as your travel partner, you are guaranteed relaxation and a risks-free travel experience with coverage both before and after the trip. With our provision of comprehensive covers at affordable premiums, we take your concerns into consideration and ensure you have the peace of mind you need when away from home 6 Annual Report 2016 Annual Report 2016 7 Financial Highlights Gross Written Gross Written Premium Premium LKR LKR 4.6 Bn 1.0 Bn Non Life Insurance Life Insurance Investment Investment Portfolio Portfolio LKR LKR 1.9 Bn 2.0 Bn Life Insurance Non Life Insurance Net Profit Net Profit LKR LKR 24 Mn 26 Mn Non Life Insurance Life Insurance 8 Annual Report 2016 Allianz at a Glance 2016 Change 2015 Change 2014 Change 2013 Change 2012 Change from from from from from previous previous previous previous previous year year year year year NON LIFE INSURANCE Income Statement Gross written premium (Rs. 000) 4,576,123 30% 3,506,621 20% 2,923,611 39% 2,104,591 38% 1,521,463 1% Underwriting Profit / (Loss) after (225,116) -1461% 14,422 89% (131,056) -244% 90,931 -50% 183,401 4% expenses (Rs. 000) Profit / (Loss) before tax (Rs. 000) 37,635 -76% 159,055 1077% 13,518 -95% 249,228 -20% 310,899 11% Balance Sheet Total Assets (Rs. ‘000) 5,211,062 27% 4,106,848 22% 3,363,034 23% 2,727,215 38% 1,970,061 10% Shareholders’ equity (Rs. ‘000) 973,471 -1% 986,717 10% 896,867 2% 875,510 12% 780,285 16% Return on net assets (%) 2.43% -78% 11.04% -9% 12.15% -45% 22.14% -25% 29.41% -16% Earning per share (Rs.) 0.47 -78% 2.18 407% 0.43 -94% 7.75 -16% 9.18 -2% 2016 Change 2015 Change 2014 Change 2013 Change 2012 Change from from from from from previous previous previous previous previous year year year year year LIFE INSURANCE Income Statement Gross written premium ( Rs'000) 1,040,269 13% 919,144 12% 823,456 -1% 828,790 56% 532,141 51% Loss for the period (Rs'000) 25,959 94% 13,367 -81% 71,053 80% 39,527 -34% 59,587 2% Profit / (Loss) before tax (Rs. 000) 37,635 -76% 159,055 1077% 13,518 -95% 249,228 -20% 310,899 11% Balance Sheet Total assets (Rs'000) 2,907,569 49% 1,947,125 33% 1,467,970 36% 1,077,008 72% 626,712 29% Investments (Rs'000) 1,930,971 23% 1,569,538 32% 1,186,394 31% 908,592 74% 523,259 33% Shareholders' equity (Rs'000) 486,186 -21% 615,715 13% 545,347 108% 261,958 69% 155,104 -30% Annual Report 2016 9 About Allianz More than 140,000 Operating Profit Share Capital Allianz employees worldwide serve some € € 86.3 million retail 10.8 Bn 1,170 Mn and corporate customers in about Net Income 70 countries, who place their trust € on the knowledge, 7.25 Mn global presence, financial strength and solidity of Allianz to support Allianz SE is among the world’s largest asset managers, with third them in their party assets under management in 2016 amounting to €1.361 billion. We are also among the world’s Top Ten insurance companies moment of truth. in terms of revenue, world leader in credit insurance, and Europe’s largest insurer by market capitalisation, and enjoy one of the world’s strongest solvency ratios - 218% in 2016. We also have one of the Allianz Insurance Lanka Ltd. and Allianz Life Insurance Lanka Ltd., world’s best credit ratings among international insurers. known together as Allianz Lanka, are fully- owned subsidiaries of Allianz SE, world leader in integrated financial services, Other recent financials (as at 31 December 2016) headquartered in Munich, Germany. Allianz SE has been named the World’s Most Ethical Insurer by the More than 140,000 Allianz employees worldwide serve some Ethisphere institute, the thinktank that recognises companies that 86.3 million retail and corporate customers in about 70 countries, promote ethical business standards and practices internally, exceed who place their trust on the knowledge, global presence, financial legal compliance minimums and shape future industry standards by strength and solidity of Allianz to support them in their moment of introducing best practices today. truth. Insurance Operations Allianz created history in 2006 by becoming the first company on the As the global leader in Property-Casualty insurance, and ranked Dow Jones Euro Stoxx 50 index to change its corporate form to a new among the Top Five in Life/Health insurance, Allianz has in its European legal form, Societas Europaea (SE). portfolio of insurance products, a wide range of Property-Casualty and Life/Health products for both private and corporate customers. 10 Annual Report 2016 Total Revenues € 122.4 Bn ROE 12 % Allianz believes in prudent investments when it comes to ensuring Consolidating our Leadership Position in 2016 the financial prosperity of our customers. We invest around 500 The Allianz Brand billion euros for our insurance customers, mostly in bonds, equities and real estate, which is roughly the same amount as the Dutch A strong brand stands for quality, trust and resilience - attributes that economy generates in a year. remain just as relevant in the digital age as before. Allianz insures many of the world’s largest and architecturally Allianz continued to rank among the most valuable international significant structures. In Asia alone we insure Malaysia’s Petronas insurance brands in 2016 in the Brand Finance Global 500 ranking, Twin Towers, one of the world’s tallest buildings, the MRT (Mass with the Allianz brand topping the Insurance Top 50 ranking for the Rapid Transport) in Singapore and Bangkok, the international airports third year in a row, the only insurer to be recognised among the in Hong Kong, Bangkok and Kuala Lumpur as well as Dubai’s Palm world’s 50 strongest brands in 2016.