Mbsl i ar 2012 print (final) by Virtuso Inc Associates.

TEAM

ONE BILLION

TEAM

ONE BILLION

Corporate Highlights

Chairman’s Review

Board of Directors

Managing Director’s Report

Executive Committee

Management Team

Branch Management

Operations Management Discussion and Analysis

Our Products

Corporate Governance

Risk Management

Sustainability Report

Finance

Annual Report of the Directors on the affairs of the Company

Audit Committee Report

Certification of IBNR and IBNER Claims Reserved

Report of the Life Actuary

Independent Auditor’s Report

Statement of Comprehensive Income 2012

Statement of Financial Position 2012

Statement of Changes in Equity 2012

Industry Segment Data - Cash Flow Statement 2012

Significant Accounting Policies

Notes to the Financial Statements

Gap Analysis - Statement of Comprehensive Income 2011

111

Gap Analysis - Statement of Financial Position

112

Industry Segment Data - Statement of Financial Position 2012

113

Industry Segment Data - Statement of Financial Position 2011

114

Industry Segment Data - Statement of Financial Position 2010

115

Industry Segment Data - Statement of Comprehensive Income 2012

116

Industry Segment Data - Statement of Comprehensive Income 2011

117

Industry Segment Data - Cash Flow Statement 2012

118

Industry Segment Data - Cash Flow Statement 2011

119

Industry Segment Data - Cash Flow Statement

120

Five Years Summary

121

Correspondence Info Corporate Information

122

Operations Network

123

Contact@mbsl i

124

Glossary of Insurance Terms

128

TEAM

ONE BILLION

2012 2011

TEAM

ONE BILLION

2012 2011

TEAM

ONE BILLION

TEAM

ONE BILLION

TEAM

ONE BILLION

TEAM

ONE BILLION

TEAM

ONE BILLION

TEAM

ONE BILLION

TEAM

ONE BILLION

Revenue

Rs. Mn. 1,200 1,000 800 600 400

200

2008 2009 2010 2011 2012

Net Claims Ratio

90 80 70 60 50 40 30 20 10 2008 2009 2010 2011 2012

Principal

Company’s Commitment

Board Composition

The Board comprises ten Directors including Executive, Non Executive and Independent Directors. The Chairman, functions in Non-Executive capacity. The Managing Director is the only Executive Director on the Board.

Frequency of Meetings

The Board meets once a month to review the Company’s performance and to determine if the strategies and business practices are in line with the Company’s corporate plan. It may hold additional meetings as and when necessary, should the need arise. The following Board sub committees also meet on regular basis. • Audit Committee • Remuneration Committee

Provision of relevant, quality and timely information and dedicating adequate time to attending the affairs of the Company

Board papers, agenda and board minutes are tabled one week prior to board meeting. The board members dedicate adequate time for the affairs of the Company by attending Board meetings, Board subcommittee meetings and by making decisions via circular resolutions.

Board Responsibilities

The Board has delegated this responsibility to The Executive Committee and the Management Team and it is being supported with the preset Corporate Plan with Strategies and Annual Budget which is closely monitored on a continuous basis.

Management Team possesses the required skills, experience and knowledge to implement the strategy

The Board ensures that the Managing Director and the Management Team possess the required skills, experience and knowledge to implement the corporate plan. The profiles of the Managing Director and Executive Committee members are provided in the annual report.

Effective systems to ensure the integrity of information, internal controls and risk management

The Board has delegated this responsibility to Board Audit Committee

Compliance with Laws and Regulations

The Board is also accountable to the Insurance Board of Sri Lanka and to the Registrar of Companies, in accordance with regulatory requirements. The Board is also is responsible for ensuring that all statutory and regulatory requirements are complied with.

Principal

Companyâ&#x20AC;&#x2122;s Commitment

Ensuring interest of all stakeholders

The Board ensures that interests of all stake holders are considered when making corporate decisions

Disclosure relating to Directors

A brief resume of each Director is included in the Annual Report â&#x20AC;&#x201C; Refer page number xx to xx

Division of Responsibilities at the Head of the Company

The functions of Chairman and Managing Director are separate. Managing Director is the only Executive Director in the Board and is responsible for the effective functioning of the day to day operations as well as achievement of corporate objectives. The Chairman is responsible for providing effective leadership to The Board.

Audit Committee

The Company has formed an Audit Committee MBSLI Audit Committee consists of three Non- Executive Directors of the Company. The Audit Committee is empowered to examine all matters relating to the financial affairs of the Company and its internal and external audits. The Committee reviews the financial statements, internal control procedures, accounting policies, compliance with accounting standards, emerging accounting issues and other related functions that the Board required. It also reviews the adequacy of systems for compliance with the relevant legal, regulatory and ethical requirements. The Audit Committee helps the Company to achieve a balance between conformance and performance.

Composition of Audit Committee

Audit Committee consists of three Non-Executive Directors

Remuneration Committee

The Company has formed a Remuneration Committee.

Less than 1 Year 1 - 3 Years 3 - 5 Years Over 5 Years

Economic Value Addition

2012

2011

1,272,419

823,891

90,467

43,000

721

558

14,048

11,734

Operating Costs

240,230

154,444

Employee Wages and Benefits

152,206

97,604

3,425

3,255

13,299

9,073

8,173

3,695

47,059

40,552

Direct Economic Value Generated Revenue Interest Income Dividend Income Other Income

Economic Value Distributed

Payments to Government

Economic Value Retained Depreciation Profits Retained Increase in Life Fund

Nurturing

healthy cadre

Financial Statements

Turnover / Gross Written Premium (GWP) The total turnover as measured by Gross Written Premium (GWP) of the Company for the financial year under review amounted to Rs. 1,272 million (2011 - Rs. 823 million).The above GWP is made up of General and Life Insurance premium income amounting to Rs. 1,079 million (2011 - Rs. 680 million) and Rs. 193 million (2011 - Rs. 143 million) respectively. A detailed analysis of the total GWP achieved by the Company is given in Note 4 to the Financial Statements on page 98. Financial Results and Appropriations Description

Profit/(Loss) Before Taxation (PBT) Income Tax Expense Profit After Taxation (PAT)

2012

2011

Rs.‘000

11,598

6,950

(3,425)

(3,255)

8,173

3,695

Board of Directors The Board assumes overall responsibility to the shareholders for setting the direction of the company through the establishment of policies and key strategic objectives and ensuring that their implementation is in line with the company’s vision and values. The Directors are accountable for proper guidance of the company’s affairs and share responsibility in ensuring the highest standards of ethics and integrity in the conduct of business of the company. The Directors of the company as at 31 December 2012 were: Name of the Director

Status

Mr. M. R. Shah

(Chairman) Non-Executive Director

Mr. Sydney Gajanayake

(MD) Executive Director

Pro. R.W.T.M. R. Bandara

Non-Executive Director

Mr. P.G. Rupasinghe

Non-Executive Director

Mr. Lakshman Perera

Non-Executive Director

Mr. Sashika Senarath

Non-Executive Independent Director

Mr. S.D. Amalean (appointed w.e.f. 02.10.2012)

Non-Executive Independent Director

Mr. D B Gamalath (appointed w.e.f. 02.11.2012)

Non-Executive Independent Director

Mr. K.A.D.G.L. Kaluarachchi (appointed w.e.f. 02.11.2012)

Non-Executive Director

Mr. S. Ahangama (appointed w.e.f. 02.10.2012)

Alternate Director to Mr. Mr. S.D. Amalean

Board Sub Committees The Board while assuming the overall responsibility and accountability in the management of the company has also appointed Board Committees to ensure control over certain affairs of the Company. Accordingly, the following Committees have been constituted by the Board. • Audit Committee • Remuneration Committee The number of Directors’ meetings which comprise Board meetings, Audit Committee meetings, and Remuneration Committee meetings together with the attendance of each Director at these meetings during the year are tabulated below.

Name of the Director

Board Meetings

Audit Committee Meetings

Mr. M. R. Shah (Chairman)

Mr. Sydney Gajanayake (MD)

Prof. R.W.T.M. R. Bandara

Mr. P.G. Rupasinghe

Mr. Lakshman Perera

Mr. Sashika Senarath

Mr. S.D. Amalean (appointed w.e.f. 02.10.2012)

Mr. D.B. Gamalath (appointed w.e.f. 02.11.2012)

Mr. K.A.D.G.L. Kaluarachchi (appointed w.e.f. 02.11.2012)

Mr.S.Ahangama (Alternate Director to Mr. S.D. Amalean (appointed w.e.f. 02.10.2012)

Remuneration Committee Meetings A

A = Number of meetings held during the period B = Number of meetings attended

Directors Interests Register The company, in compliance with the Companies Act No. 7 of 2007, maintains an Interests Register. In compliance with the requirements of the Companies Act, this annual report also contains particulars of any entries made in the Interests Register as detailed below. a) Directors’ Interests in Transactions The Directors of the company have made general declarations as provided for in section 192 (2) of the Companies Act No. 7 of 2007. Arising from this details of contracts in which they have an interest are found in note 35 of the financial statements, under related party transactions. b) Directors’ Interests in Shares The Directors of the company who have relevant interests in the shares of the company have disclosed their shareholding and any acquisitions or disposals to the Board, in compliance with Section 200 of the Companies Act. The Directors’ individual shareholdings in the company as at 31st December 2012 and 31st December 2011 were as follows. Name of the Director No. of shares as at 31st Dec 2012 31st Dec 2011 Mr. M. R. Shah (Chairman) Mr. Sydney Gajanayake (MD) Pro. R.W.T.M. R. Bandara Mr. P.G. Rupasinghe Mr. Lakshman Perera Mr. Sashika Senarath Mr. S.D. Amalean (appointed w.e.f. 02.10.2012) Mr. D.B. Gamalath (appointed w.e.f. 02.11.2012) Mr. K.A.D.G.L. Kaluarachchi (appointed w.e.f. 02.11.2012) Mr. S. Ahangama (Alternate Director to Mr. S.D. Amalean (appointed w.e.f. 02.10.2012)

Nil 1,670,000 Nil Nil Nil Nil Nil

1,000,000

Nil

c) Directors’ Remuneration Managing Director’s remuneration is decided by the Board with the recommendation of the Remuneration Committee considering the individual and Company performance. No remuneration is paid to Non-Executive Directors other than the nominal fees paid in line with the attendance of each Director to Board and Sub Committee meetings. Total Directors’ emoluments including post employment benefits to Directors for the financial year ended 31st December 2012 is Rs. 7.8 million (2011 - Rs. 5.6 million). Directors are not allowed to obtain loans of any kind from the Company.

Share Information a) The Share Issued and Fully Paid - Rs. 779,487,020/- i.e. 304,848,702 shares Class of Share - Ordinary Shares Voting Rights - One vote per Ordinary Share b) Shareholdings The number of registered shareholders of the Company as at 31st December 2012 was 157 (2011 -157). The distribution and analysis of shareholdings are given below. Shares

No. of Shareholders

No. of Shares

% on Total No. of Shares

1,001 - 10,000 10,001 - 100,000

730,000

0.24

2,606,000

0.85

100,001 - 1,000,000

3,686,000

1.21

Over - 1,000,000

297,826,702

97.70

157

304,848,702

100.00

Total c) Analysis of Shareholders 31st December 2012 No. of Shareholders Individual Institutional Total

No. of Shares

31st December 2011 % on Total No. of Shares

No. of Shareholders

No. of Shares

% on Total No. of Shares

148

14,692,000

4.82

148

14,692,000

4.82

290,156,702

95.18

290,156,702

95.18

157

304,848,702

100.00

157

304,848,702

100.00

d) Top 20 Shareholders The 20 largest shareholders as at 31st December 2012 together with their Shareholding as at 31st December 2011 are given below. Name of the shareholder

Merchant Bank of Sri Lanka PLC

2012

2011

No. of Shares

% on Total No. of Shares

No. of Shares

% on Total No. of Shares

237,848,702

78.02

237,848,702

78.02

MAS Capital (Pvt) Ltd

28,285,000

9.28

28,285,000

9.28

Lanka Corrugated Industries (Pvt) Ltd

10,000,000

3.28

10,000,000

3.28

W D N H Perera

6,000,000

1.97

6,000,000

1.97

Timex Garments (Pvt) Ltd

3,350,000

1.10

3,350,000

1.10

Jinadasa Capital (Pvt) Ltd

3,333,000

1.09

3,333,000

1.09

Royal Ceramics Lanka Plc

2,000,000

0.66

2,000,000

0.66

Rose Wood (Pvt) Ltd

2,000,000

0.66

2,000,000

0.66

Orit Apparels Lanka (Pvt) Ltd

1,670,000

0.55

1,670,000

0.55

Lanka Corrugated Investments (Pvt) Ltd

1,670,000

0.55

1,670,000

0.55

P S K L Gajanayake

1,670,000

0.55

1,670,000

0.55

M H M Nazeer

1,000,000

0.33

1,000,000

0.33

D B Gamalath

1,000,000

0.33

1,000,000

0.33

C J Botejue

666,000

0.22

666,000

0.22

G M Fonseka

400,000

0.13

400,000

0.13

A P G Karunatillake

300,000

0.10

300,000

0.10

S N E T De Silva

200,000

0.07

200,000

0.07

M S S Paramananda

136,000

0.04

136,000

0.04

M Nimal

120,000

0.04

120,000

0.04

H M S A Herath

100,000

0.03

100,000

0.03

S R Botejue

100,000

0.03

100,000

0.03

Lakshmi Perera

100,000

0.03

100,000

0.03

D C Kevitiyagala

100,000

0.03

100,000

0.03

J M W Wickrama

100,000

0.03

100,000

0.03

A Pandipperuma

100,000

0.03

100,000

0.03

S W Hettiarachchige

100,000

0.03

100,000

0.03

302,348,702

99.18

302,348,702

99.18

Total

Equitable Treatment to all Shareholders The Company has at all times ensured that all shareholders are treated equitably. Corporate Governance The Board of Directors is committed to maintain an effective Corporate Governance structure and process and to be in compliance with all possible rules, regulations and best practices on Corporate Governance. System of Internal Controls The Board considers that strong internal controls are integral to the sound management of the Company and is committed to maintain strict financial, operational and risk management controls over all its activities. The Directors are ultimately responsible for the Companyâ&#x20AC;&#x2122;s system of internal controls and for reviewing its effectiveness. Such a system is designed to manage, rather than eliminate, the risk of failure to achieve business objectives and can provide only reasonable and not absolute assurance against material misstatement or loss. There is an ongoing process for identifying, evaluating and managing the risks that are faced by the Company, and the Directors have reviewed this process, through the Audit Committee. Donations There were no donations granted during the year. 70

Income Taxation Income Taxes are computed on rates enacted or substantively enacted as at the Balance Sheet date. The Income Tax rate applicable to Companyâ&#x20AC;&#x2122;s operations is 28% (2011-28%). The income tax expense of the Company is given in Note 12 to the Financial Statements. As further explained in Note 12a to the Financial Statements, no Deferred Tax asset is recognized since it is not probable that future taxable profits will be adequate to utilize the available tax losses fully in the foreseeable future. Statutory Payments The Directors, to the best of their knowledge and belief are satisfied that all statutory payments due to the government, other regulatory institutions and in relation to the employees have been made on time. Investments Details of investments held by the company are disclosed in note16 to the financial statements. Property, Plant and Equipment (PPE) As at the Balance Sheet date the net book value of Property, Plant and Equipment amounted to Rs. 68.5 million (2011 - Rs. 30.1 million). An analysis of the Property, Plant and Equipment of the Company, additions and disposals made during the year together with the depreciation charge for the year are set out in Note 15 to the Financial Statements. Provisions The Directors have taken all responsible steps to ensure adequate provisioning has been made for unearned premiums, and outstanding claims, including claims incurred but not reported and not enough reported. The Directors have also consulted an independent Actuary in the process of valuing IBNR and IBNER reserves and his report is given on page 73. Moreover, the Directors have arranged a Consultant Actuary to value the Life Fund and the report of the Consultant Actuary is given on page 74. The Company also carried out the Liability Adequacy Test (LAT) in respect of both Life and Non-Life Insurance Contract Liabilities (Insurance Provisions) as required by SLFRS 4 - Insurance Contracts with the assistance of external actuaries and concluded the recorded liabilities are adequate to meet future obligations arising from the insurance contracts. The Company has decided to perform the LAT on an annual basis. Gratuity liability was also valued by an independent Actuary as required by the Sri Lanka Accounting Standards No 19 - Employee Benefits. As at the date of the Report, the Directors are not aware of any circumstances, which would render inadequate the amounts provided for in the Financial Statements. Stated Capital and Shareholdersâ&#x20AC;&#x2122; Funds In compliance with the Companies Act No. 7 of 2007, the financial statements reflect the stated capital of the company. The stated capital is the total of all amounts received by the company in respect of the issued share capital. The total capital and reserves stood at Rs. 400.8 million as at 31st December 2012 (Rs. 379.1 million as at 31st December 2011).

Notes Gross Written Premiums Gross Premiums Premium Ceded to Reinsurers

2011

Rs’000

1,272,419

823,891

1,057,013

719,255

4(a)

(154,456)

(198,811)

902,557

520,444

Net Premiums Fees and Commission Income

41,829

56,252

Income from Investments

91,188

43,558

Realized Gains

669

2,945

Fair Value Gains and Losses

5,454

(10,546)

Other Revenue

14,048

11,734

153,188

103,943

Total Revenue

1,055,745

624,387

(538,902)

(347,481)

Gross Benefits and Claims Paid Claims Ceded to Reinsurers Gross Change in Contract Liabilities 76

2012

Change in Contract Liabilities Ceded to Reinsurers

9 a,e 9 c,h

79,853

87,037

9 b,f,g

(59,872)

(14,273)

9 d,I

3,436

(14,343)

(515,485)

(289,059)

Net Claims and Benefits Finance Costs

(7,405)

(392)

Operating and Administrative Expenses

(521,257)

(327,986)

(528,661)

(328,378)

(1,044,147)

(617,437)

11,598

6,950

(3,425)

(3,255)

8,173

3,695

0.03

0.012

2012

2011

Rs’000

8,173

3,695

14,571

(18,920)

Total Benefits, Claims and Other Expenses Profit Before Taxation Income Tax Expenses

Profit After Taxation

Earning per Share - Basic

STATEMENT OF OTHER COMPREHENSIVE INCOME

Profit for the Year Changes in Fair Value of Available for Sale Financial Assets

(971)

(840)

Other Comprehensive Income for the Year

13,600

(19,760)

Total Comprehensive Income for the Year

21,773

(16,065)

Actuarial Gain/Loss Recognized during the Year

2012

2011

2010

Notes

Rs’000

Deferred Expenses

45,049

14,596

11,717

Property, Plant and Equipment

68,585

30,191

19,644

Loans and Receivables

16a

679,978

164,229

Available for Sale Financial Assets

16b

53,180

384,918

378,945

Financial Assets at Fair Value Through Profit and Loss

16c

20,372

32,047

34,701

Reinsurance Assets - Insurance Contracts

46,104

44,688

35,222

Income Tax Receivables

15,574

11,330

2,957

Loans to Life Policy Holders

2,462

1,610

274

Insurance Receivables

303,999

187,970

152,182

Other Assets

73,148

46,714

19,525

Cash and Cash Equivalents

Assets

Financial Instruments

Total Assets

39,627

92,127

4,402

1,348,078

1,010,420

659,568

Shareholders’ Equity Stated Capital Accumulated Losses Fair Value Reserve Life Insurance Fund Reserve Total Shareholders’ Equity

779,487

528,487

(378,664)

(385,866)

(388,721)

(1,935)

(16,506)

2,414

1,961

400,849

379,076

144,141

Equity and Liabilities Liabilities Insurance Contract Liabilities - Life

166,087

115,210

78,681

Insurance Contract Liabilities - Non Life

571,068

342,848

264,490

Retirement Benefit

8,669

5,169

2,537

Borrowings

27,642

19,685

11,301

49,199

76,636

87,521

124,564

71,796

70,897

947,229

631,344

515,427

1,348,078

1,010,420

659,568

Insurance Liabilities Trade and Other Payables Total Liabilities Total Equity and Liabilities

Stated

Accumulated

Available

Life Insurance

Total

Capital

Losses

For Sale

Fund Reserve

Equity

Financial Asset Rs’000

Rs’000

478,487

(394,465)

1,961

85,983

Net Profit for the Year

5,922

Other Comprehensive Income

(178)

2,414

2,236

Total Comprehensive Income for the Year

5,744

2,414

8,158

50,000

528,487

(388,721)

2,414

1,961

144,141

Net Profit for the Year

3,695

Other Comprehensive Income

(840)

(18,920)

(19,760)

Total Comprehensive Income for the Year

2,855

(18,920)

(16,065)

Issue of Shares

251,000

Balance as at 31st December 2011

779,487

(385,866)

(16,506)

1,961

379,076

Net Profit for the Year

8,173

Other Comprehensive Income

(971)

14,571

13,600

Total Comprehensive Income for the Year

7,202

14,571

21,773

779,487

(378,664)

(1,935)

1,961

400,849

Balance as at 1st January 2010

Issue of Shares Balance as at 31st December 2010

Balance as at 31st December 2012

2012

2011

Rsâ&#x20AC;&#x2122;000

Cash Flows from Operating Activities Premium Received from Policy Holders

1,156,390

788,105

Reinsurance Premium Paid

(181,892)

(192,379)

Claims and Benefits Paid

(537,578)

(346,973)

78,437

87,037

(110,044)

(68,036)

90,468

43,289

Reinsurance Receipts in Respects of Claims Cash Paid to and on Behalf of Employees Interest Received

(7,405)

(369)

(480,982)

(463,071)

7,393

(152,396)

(51,852)

(19,622)

(51,818)

(19,622)

Proceeds from Issue of Share Capital

251,000

Net Cash from Financing Activities

251,000

(44,425)

78,982

11,598

6,950

(84,706)

(119,775)

101,834

122,428

Interest Paid Other Operating Cash Payments Net Cash (Used) / Generated from Operating Activities (Note A) Cash Flows from Investing Activities Purchase of Property, Plant and Equipment Proceeds on Sale of Property, Plant and Equipment Net Cash Used in Investing Activities

Cash Flows from Financing Activities

(Decrease) / Increase in Cash and Cash Equivalents (Note B) (A)

Reconciliation of Loss before Tax with Net Cash Used in Operating Activities Profit Before Tax Purchase of Fair Value through Profit or Loss Financial Assets Proceeds from Fair Value through Profit or Loss Financial Assets Fair Value Gains Recognized in the Income Statement Purchase of Available for Sale Financial Assets Proceeds from Available for Sale Financial Assets

10,546

(1,974,124)

(789,388)

2,320,431

705,184

(14,572)

(18,920)

Increase in Loans and Receivables

(490,535)

(96,314)

Increase in Trade Receivables and Other Assets

(155,486)

(86,819)

50,876

40,435

Fair Value Gains Recognized in the Income Statement

Increase in Provision for Life Business Increase in Net Unearned Premiums and Deferred Acquisition Costs (Decrease) /Increase in Other Liabilities

197,767

75,478

27,385

(13,905)

3,501

2,631

13,424

9,074

7,393

(152,396)

Cash and Cash Equivalents for the Previous Year

72,506

(6,476)

Cash and Cash Equivalents for the Current Year (Note 22)

28,081

72,506

(44,425)

78,982

Provision for Gratuity Depreciation on Property, Plant & Equipment Net Cash Generated from Operating Activities (B)

Decrease in Cash and Cash Equivalents

3.9.2 Credit Exposure by Credit Rating The table below provides information regarding the credit risk exposure of the company by classifying assets according to the companyâ&#x20AC;&#x2122;s credit ratings of counter-parties / instruments by Ram Ratings (Pvt) Ltd or Fitch Ratings (Pvt) Ltd. AAA is the highest possible rating. Assets that fall outside the range of AAA to BBB- are classified as speculative grade. Government securities have been classified as a separate category as it is considered a risk free investment. Credit exposure by credit ratings The company actively manages its product mix to ensure that there is no significant concentration of credit risk. During the year, no credit exposure limits were exceeded. Credit Exposure Analysis 31st December 2012

Government Guaranteed

AAA

AA+AA

A+A

BBB+BBB

Not Rated

Total

106,466

96,434

3,085

679,978

6,500

53,180

20,372

Financial Assets Held-to maturity financial assets Loans and receivables Available for sale financial assets

473,993 46,680

Financial Assets at fair value through profit or loss Reinsurance receivable 94

9,850

29,709

Cash and cash equivalents

6,545

46,104

39,627

39,627 -

31st December 2011

Government Guaranteed

AAA

AA+AA

A+A

BBB+BBB

26,428

35,583

Not Rated

Total

Financial Assets Held-to maturity financial assets

Loans and receivables

102,218

Available for sale financial assets

379,918

Financial Assets at fair value

164,229 5,000

384,918

32,047

through profit or loss Reinsurance receivable

9,044

29,570

Cash and cash equivalents

6,074

92,127

44,688 92,127

The company actively manages its product mix to ensure that there is no significant concentration of credit risk. During the year, no credit exposure limits were exceeded. 31st December 2012 Reinsurance receivable Premium receivables

01 to 60 days Rs.000

61 to 90 days Rs.000

over 91 days Rs.000

45,255 284,285

814 19,714

35 -

01 to 60 days Rs.000

61 to 90 days Rs.000

over 91 days Rs.000

39,250 159,896

5,241 28,074

197 -

Total 31st December 2011 Reinsurance receivable Premium receivables Total No financial assets of the company has impaired during the year.

Maturity Analysis of Assets 2012 Financial Assets

Loans and receivables Available for sale

Carrying Amount RS.000

Up to a year RS.000

1-3 years RS.000

679,978

653,563

26,415

53,180

3-5 years RS.000

5-15 years RS.000

9,888

36,792

Over 15 Years RS.000

No Maturity Date Rs.000

6,500

Fair value through Profit & loss

20,372

Held to Maturity Cash and cash equivalents

39,627

(a) Currency Risk Currency risk is the risk that the fair value / present value of the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The company’s principal transactions are carried out in Sri Lankan Rupees and its exposure to foreign exchange risk arises primarily with respect to the US Dollar. The company’s financial assets are primarily denominated in the same currencies as its insurance liabilities. This mitigates the foreign currency exchange rate risk for the operations. Thus, the main foreign exchange risk arises from recognized assets and liabilities denominated in currencies other than those in which insurance liabilities are expected to be settled. 31st December 2012

31st December 2011

Amount in Foreign Currency ‘000

LKR amount Rs.‘000

Amount in Foreign Currency ‘000

LKR amount Rs.‘000

USD 92.37

11598.23

USD 47.43

5359.94

USD Assets

The company sells foreign currency denominated policies to eligible clients in the normal course of business. However, no material claim liabilities are recorded on foreign currency denominated policies as at the reporting date. Foreign Currency Assets The table below summarizes the company’s exposure to currency risk, based on changes in market. Sensitivity Analysis – Currency Risk 96 Currency

USD USD

31stDecember 2012

31st December 2011

Change in Variables %

Impact on profit Before tax Rs.‘000

Impact on equity (After tax) Rs.‘000

Impact on profit Before tax Rs.‘000

Impact on equity (After tax) Rs.‘000

+10% -10%

1,159.82 (1,159.82)

835.07 (835.07)

535.99 (535.99)

385.92 (385.92)

(b) Interest Rate Risk Interest rate risk is the risk that the fair value / present value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Floating rate instruments expose the company to cash flow interest risk, whereas fixed interest rate instruments expose the company to fair value interest risk. The company’s interest risk policy requires it to manage interest rate risk by maintaining an appropriate mix of fixed and variable rate instruments. The policy also requires it to manage the maturities of interest bearing financial assets and interest bearing financial liabilities. The company has no significant concentration of interest rate risk. (c) Equity Price Risk Equity price risk is the risk that the fair value / present value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The company’s equity price risk exposure relates to financial assets whose values will fluctuate as a result of changes in market prices, principally investments in equity securities. The company’s Investment Policy requires it to manage equity price risks by setting and monitoring objectives and constraints on investments, diversification plans, and limits on investments.The company has no significant concentration of price risk. (d) Sensitivity Analysis on Financial Assets As part of the company’s investment strategy, in order to reduce both insurance and financial risk, the company matches its investments to the liabilities arising from insurance by reference to the type of benefits payable to contract holders to the maximum possible extent. However, due to the limited availability of long term investment opportunities in the country, insurance liabilities (particularly Life Insurance) are of a longer term than corresponding assets.

2012

2011

Rsâ&#x20AC;&#x2122;000

Fire

63,772

57,934

Marine

31,101

20,315

Motor

748,617

462,941

Miscellaneous

236,149

138,781

1,079,639

679,971

Individual Policies

183,531

141,824

Group Life Policies

9,249

2,096

Gross Premiums

Non-life Insurance

Life Insurance

4 (a).

192,780

143,920

Total Gross Written Premiums

1,272,419

823,891

Change in Unearned Premium Provisions

(215,406)

(104,637)

Gross Premiums

1,057,013

719,255

140,944

187,016

Premium Ceded to Re-insurers Non-life Insurance Life Insurance

Total 5.

13,512

11,795

154,456

198,811

Fees and Commission Income Policy Holder Administration and Management Services

13,768

8,712

Reinsurance Commission Income

28,061

47,540

41,829

56,252

721

558

40,021

29,726

28,669

3,938

69,411

34,222

10,607

8,303

11,170

1,033

Income from Investments Financial Assets at Fair Value Through Profit and Loss Dividend Income Available for Sale Financial Assets Interest Income Loans and Recievables Interest Income Life Insurance Available for Sale Financial Assets Interest Income Loans and Recievables Interest Income Total Investment Income

21,777

9,336

91,188

43,558

Note 7.

2012

2011

Rsâ&#x20AC;&#x2122;000

669

2,945

5,454

(10,546)

532,246

338,608

Realized Gains Financial Assets at Fair Value Through Profit & Loss Realized Gains - Equity Shares

Fair value Gains and Losses Fair Value Gains on Financial Assets at Fair Value Through Profit & Loss - Equity Shares

Net Claims and Benefits General Insurance Claims Paid

Claims Outstanding

Reinsurance on Claims Paid

Reinsurance on Claims Outstanding

12,814

(26,280)

(545,060)

(312,328)

77,373

82,467

2,223

(14,298)

79,596

68,169

(465,464)

(244,159)

6,656

8,873

44,558

40,438

51,214

49,311

Reinsurance Recoveries General Insurance Net Claim and Benefits Life Insurance Claims Paid Change in Life Insurance Contract Liabilities Claims Outstanding

2,501

114

53,715

49,425

2,480

4,570

1,214

(45)

Gross Claims - Death, Disability and Hospitalisation Reinsurance on Claims Paid Reinsurance on Claims Outstanding Reinsurance Recoveries Long Term Insurance Net Claim and Benefits Net Claims and Benefits 10.

3,694

4,525

50,021

44,900

(415,443)

(199,259)

314

369

Finance Costs Current Borrowings Interest on Bank Overdraft Interest on Reverse Repo Interest on Lease

11.

7,091

7,405

392

Operating and Administrative Expenses Depreciation on Property, Plant and Equipment Fees and Commission Expenses Auditors Remuneration Employee Benefits Expense Foreign Exchange Adjustments Other Expenses

13,299

9,073

114,957

66,334

525

152,206

97,604

240,230

154,444

521,257

327,986

11(a)

2012

2011

Employee Benefits Expense

Rs’000

Staff Salaries

90,078

68,036

Defined Contribution Plans

15,976

11,136

Defined Benefit Obligation

3,002

1,883

43,150

16,549

152,206

97,604

Profit for the Year

7,203

3,905

Income Tax Expenses

3,425

3,255

10,628

7,160

Other Staff Related Costs

12.

Income Tax Expenses A reconciliation between tax expense and the product of accounting profit multiplied by the statutory tax rate is as follows.

Profit Before Income Tax Income Exempt from Tax Aggregate Allowable Expenses Aggregate Disallowed Expenses Recognition of Previously Unrecognised Tax Losses At the Statutory Income Tax Rate of 28% ( 2010 : 35% )

(6,843)

(3,503)

(21,223)

(10,302)

36,256

24,532

(6,586)

(6,260)

1,604

4,467

3,425

3,255

100 12(a)

Unrecognised Deferred Tax Asset Deferred Tax Asset Deferred Tax Liability Net Deferred Tax Asset/(Liability) Deferred Tax Asset

48,513

50,206

(2,115)

(2,842)

46,398

47,364

1,550

1,447

Employee Benefits

46,962

48,759

Brought Forward Tax Losses

48,512

50,206

(2,115)

(2,842)

Deferred Tax Liability Property, Plant and Equipment 13.

Earnings Per Share Earnings per share is calculated based on the net profit attributable to ordinary shareholders and the weighted average number of ordinary shares in issue during the year. Net Profit/(Loss) Attributable to Ordinary Shareholders Ordinary Shares at 1st January Effects of Shares Issued during the Current Year Weighted Average Ordinary Shares at 31st December Earnings/(Loss) per Share

14.

8,173

3,695

304,849

44,500

304,849

349,349

0.03

0.012

2012

2011

2010

Rs’000

Balance as at 1st January

14,596

11,717

17,644

Expenses Deferred for the Year

30,453

2,879

(5,927)

Balance as at 31st December

45,049

14,596

11,717

Deferred Expenses

15.

Property, Plant and Equipment

Computer Hardware Rs’000

Computer Software Rs’000

Motor Vehicle Rs’000

Office Equipment Rs’000

Furniture & Fittings Rs’000

Total Rs’000

16,130

885

2,840

7,414

16,454

43,723

Addition

1,896

381

1,412

2,151

5,840

Disposal

(1,351)

18,026

1,266

1,489

8,826

18,605

48,212

Opening Balance

(8,493)

(649)

(1,759)

(4,166)

(6,581)

(21,648)

Charges for the Year

(3,477)

(197)

(325)

(1,628)

(2,185)

(7,813)

893

(11,970)

(846)

(1,191)

(5,794)

(8,766)

(28,568)

6,056

420

298

3,032

9,839

19,644

18,026

1,266

1,489

8,826

18,605

48,212

8,798

551

2,136

8,135

19,620

Year Ended 31st December,2010 Cost Opening Balance

Closing Balance Year Ended 31st December,2010 Accumulated Depreciation

Disposal Closing Balance Net Book Value Year Ended 2010 Year Ended 31st December,2011 Cost Opening Balance Addition Disposal Closing Balance

26,824

1,817

1,489

10,962

26,740

67,832 101

Year Ended 31st December,2011 Accumulated Depreciation Opening Balance

(11,970)

(846)

(1,191)

(5,794)

(8,766)

(28,567)

(3,929)

(247)

(298)

(1,599)

(3,000)

(9,073)

(15,899)

(1,093)

(1,489)

(7,393)

(11,766)

(37,641)

10,925

724

3,569

14,974

30,191

Opening Balance

26,824

1,817

1,489

10,962

26,740

67,832

Addition

16,025

4,469

3,182

9,212

18,803

51,691

Charges for the Year Disposal Closing Balance Net Book Value Year Ended 2011 Year Ended 31st December,2012 Cost

Disposal Closing Balance

(619)

42,849

6,286

4,671

20,174

44,924

118,905

Year Ended 31st December,2012

Accumulated Depreciation

Opening Balance Charges for the Year Disposal Closing Balance Net Book Value Year Ended 2012

(15,899)

(1,093)

(1,489)

(7,393)

(11,766)

(37,640)

(5,463)

(1,113)

(398)

(2,239)

(4,086)

(13,299)

619

(21,362)

(2,206)

(1,887)

(9,632)

(15,233)

(50,320)

21,487

4,080

2,784

10,542

29,691

68,585

Office equipments and motor vehicles include the following amounts where the Company is a lessee under a finance lease:

Cost - Capitalized Finance Leases Accumulated Depreciation Net Book Amount

2012

2011

2010

Rs’000

2,421

(2,421)

(2,411)

(1,905)

516

16.

16(a)

2011

2010

Rs’000

Financial Instruments Loans and Receivables

16(a)

679,979

164,229

Available for Sale Financial Assets

16(b)

53,181

384,918

378,945

Financial Assets at Fair Value Through Profit and Loss

16(c)

20,372

32,047

34,701

753,531

581,194

413,646

26,415

26,428

105,137

35,583

74,434

Loans and Receivables Debentures Fixed Deposits Commercial Paper Repurchase Agreements

16(b)

2012 Rs’000

473,993

102,218

679,979

164,229

30,282

323,310

49,181

370,578

53,620

Available for Sale Financial Assets Treasury Bills Treasury Bonds

6,500

5,000

(2,500)

(20,942)

2,015

53,181

384,918

378,945

Unit Trust Fair Value Reserve 102 Quoted Shares

No of Shares

Cost

Market

No of

Value

Cost

2012 Rs’000

Market

No of

Value

Market

Cost

2011

Rs’000

Value 2010

Rs’000

Banks Finance and Insurance Amana Takaful PLC Asia Capital PLC

36,900

195,800

655

587

4,200

202

127

1,100

12,200

558

573

500

114

191

First Capital Holdings PLC

27,800

596

448

123,000

2,511

2,337

People’s Merchant Bank PLC

42,500

904

672

6,200

200

182

Seylan Bank PLC

43,600

3,823

2,987

40,700

3,652

3,980

Ceylinco Insurance PLC

72,500

3,100

2,233

41,700

2,120

2,043

SMB Leasing PLC

700,998

879

701

36,800

Janashakthi Insurance PLC

208,803

2,660

2,192

76,800

1,644

1,167

Union Bank of Colombo Ltd

202,940

4,188

2,801

137,200

4,262

2,607

4,500

110

3,300

107

4,300

617

485

Seylan Bank PLC (NV)

Chilaw Finance PLC DFCC Bank Hatton National Bank (NV) HNB Assurance Singer Finance PLC Swarnamahal

9,900

1,240

849

22,937

1,667

1,124

22,466

1,689

1,281

700

25,831

143

180

17,000

917

779

Merchant Bank of Sri Lanka PLC

Nations Trust Banks PLC

11,100

885

926

Nations Trust Banks PLC (NV)

20,000

644

1,152

Pan Asia Bank PLC

2,500

101

130

Seylan Development PLC

10,000

218

168

Union Assurance

Quoted Shares

No of Shares

Market

No of

Cost

Value

Market

No of

Cost

Value

Rs’000

3,900

183

174

12,600

3,413

3,760

6,100

10,000

1,656

1,827

891

763

2012

Market

Cost

Value

Rs’000

2011

2010

Diversified Holdings Hemas Holding PLC -

John Keells Holdings PLC Ceylon Theatres PLC

Aitken Spence PLC

397,900

2,105

1,273

12,105

109

121,300

1,576

1,092

Free Lanka Capital Holdings PLC Richard Pieris & Company PLC Manufacturing Hayleys Mgt Knitting Mills PLC

3,300

117

106

Lanka Tiles PLC

2,400

241

322

Lanka Walltiles PLC

2,000

212

278

Piramal Glass Ceylon PLC

100,000

970

790

200,000

788

1,560

47,500

119

190

Abans Electrical PLC

15,119

1,979

1,467

3,400

794

646

Bogala Graphite PLC

26,833

1,267

636

12,100

811

472

Laxapana Batteries PLC

96,942

834

669

1,300

Palawatta Sugar PLC

26,800

1,126

630

26,800

1,126

630

5,600

354

246

33,100

332

261

Raigam Waya. Salterns Ltd

Tokyo Cement PLC Telecommunication Dialog Axiata PLC Investment Trust

32,854

2,284

1,097

30,900

2,255

1,573

40,600

3,244

2,274

Equity Two PLC

18,200

539

442

Environmental Res. Inv. PLC

35,000

2,680

1,404

15,000

1,601

1,289

Touchwood Investment PLC

62,500

1,906

1,344

25,000

864

708

Equity One PLC

4,500

783

625

28,300

153

136

1,800

162

133

Guardian Capital Partners PLC Taprobane Holdings Hotels and Travels Hotel Sigiriya PLC

Amaya Leisure PLC

4,214

337

383

The Lighthouse PLC

4,900

321

262

Marawila Resorts PLC Hotel Services (Ceylon) PLC

5,000

10,000

189

171

10,800

325

221

25,000

774

650

8,000

468

425

4,600

307

290

Asian Hotels & Properties PLC

3,000

462

582

Galadari Hotels Lanka PLC

25,500

1,133

913

Mahaweli Reach Hotels PLC

8,100

307

284

The Fortress Resorts PLC

3,700

The Lighthouse Hotel PLC

103

Quoted Shares

No of Shares

Cost

Market

No of

Value

Cost

2012 Rs’000

Market

No of

Value

Market

Cost

Value

2011

Rs’000

2010

Rs’000

Construction and Engineering 174,121

Lankem Development PLC

1,645

1,323

5,500

183

35,000

315

308

Overseas Reality PLC

20,100

453

283

13,300

301

293

East West Properties PLC

12,700

616

319

70,000

655

259

Power and Energy Laugfs Gas PLC Hemas Power PLC

7,500

235

192

1,000

76,903

1,871

1,684

19,900

698

537

15,000

487

443

11,477

2,399

1,836

14,200

4,249

2,986

Beverage, Food and Tobacco Biraha Farms Ltd

3,293

247

177

7,200

911

748

Coco Lanka PLC

3,500

230

193

5,000

258

322

The Lion Brewery Ceylon PLC

3,000

457

555

5,555

505

433

2,000

275

199

2,000

275

185

Three Acre Farms PLC

Footwear 104

Ceylon Leather Products PLC Trading

2,900

767

681

100,000

702

770

9,910

256

199

20,000

927

649

6,200

1,249

1,531

137,000

375

370

Colombo Land & Dev Co PLC

20,000

505

388

Overseas Reality (Ceylon) PLC

20,000

451

306

York Arcade Holdings PLC

20,800

623

501

Brown & Company PLC Odel PLC Tess Agro PLC Land and Property

Plantations 4,700

199

154

3,400

180

170

Horana Plantations PLC

40,002

1,552

980

11,600

773

439

Watapota PLC

Agalawatta Plantations PLC

18,570

1,546

966

Balangoda Plantations PLC

21,500

1,412

1,234

Kotagala Plantations PLC

12,300

1,153

1,438

1,779,373

28,730

20,374

1,461,130

45,859

32,064

1,458,214

38,341

38,168

Total Portfolio

(13,812)

(3,640)

38,341

(Provision)/ Reversals made during the year

5,454

(10,172)

(3,640)

Provision for Diminution in Market Value C/F

(8,358)

(13,812)

(3,640)

20,372

32,047

34,701

Less : Provision for Diminution in Market Value B/F

Carrying Value of Total Investments in Unquoted Shares

17.

19.

8,856

36,283

19,013

37,248

8,405

16,209

Total

46,104

44,688

35,222

Withholding Tax Receivable

4,097

1,620

1,401

Economic Service Charges Receivables

2,189

5,614

1,468

Other Tax Receivables

9,288

4,096

15,574

11,330

2,957

Income Tax Receivables

Loans to Life Policy Holders Loans Granted During the Year Repayments During the Year Interest Receivable Balance as at 31st December

Life Insurance Total

274

634

1,223

262

(41)

(30)

259

143

2,462

1,610

274

286,943

175,046

140,023

105 17,056

12,924

12,159

303,999

187,970

152,182

Other Assets 1,233

418

137

Advances and Deposits

44,839

26,732

10,733

Other Receivable

27,076

19,564

8,655

73,148

46,714

19,525

39,627

92,127

4,402

Inventories

22.

1,610

Insurance Receivables Non Life Insurance

21.

2010 Rs’000

Reinsurance Receivable on Claims Paid

Balance as at 1st January

20.

2011 Rs’000

Reinsurance Assets - Insurance Contracts Reinsurance Receivable on Outstanding Claims

18.

2012 Rs’000

Cash and Cash Equivalents Cash in Hand and at Bank For the purposes of the cash flow statement, the year-end cash and cash equivalents comprise the following :

Cash and Cash Equivalents Bank Overdrafts

39,627

92,127

4,402

(11,546)

(19,621)

(10,878)

28,081

72,506

(6,476)

23.

Increase in Life Fund

Rs’000

118,943

78,508

41,336

44,558

40,435

37,172

163,501

118,943

78,508

(565)

(4,437)

(399)

114,506

78,109

3,151

704

572

166,087

115,210

78,681

Provision for Reported Claims by Policy Holders

46,432

41,898

64,942

Provision for Claims IBNR

16,089

7,809

11,044

Outstanding Claims Provision

62,521

49,707

75,986

Unclaimed Benefits

25.

2010

162,936

Fair Value Reserve

106

2011

Insurance Provision - Life Balance as at 1st January

24.

2012

Insurance Contract Liabilities - Non Life

Provision for Unearned Premiums

508,547

293,141

188,504

Total Non life Insurance Contract Liabilities

571,068

342,848

264,490

10.5%

10%

Retirement Benefit The Principal Assumptions Used for the Purpose of Actuarial Valuations were as follows: Discount Rate Expected Rate(s) of Salary Increase Disability

Standard

Mortality

Mortality Table

55 years

Balance as at 1st January

5,168

2,537

2,013

Provision for the Year

3,971

2,723

939

Payments Made During the Year

(470)

(91)

(415)

Balance as at 31st December

8,669

5,169

2,537

2,459

1,616

896

Interest Cost

543

266

221

Actuarial Gain

971

840

(178)

3,973

2,722

939

Reverse Repo

16,096

Bank Overdrafts

11,546

19,621

10,878

423

27,642

19,685

11,301

Normal Retirement Age

Expense recognized in the Statement of Income Current Service Cost

Total Included in the Staff Cost 26.

Borrowings

Lease Creditor

27.

Trade and other payables Policyholders’ Advance Payments

14,258

17,089

18,525

Agency Commissions Payable

40,120

22,475

22,516

Government Levies

21,370

15,827

11,372

Others Creditors 28.

48,815

16,404

18,484

124,563

71,795

70,897

Events after the Balance Sheet Date No circumstances have arisen except disclosed below, since the balance sheet date which would require adjustments to or disclosures in the financial statements. Company has issued 101,616,214 nos. of ordinary shares to the existing Shareholders of the company by way of a Rights Issue in proportion of 1 new share for every 3 shares held in the Company at a price of Rs.1/- per share as approved at the Extra Ordinary General Meeting held on 07th February, 2013.

29.

Capital Commitments As at 31st December 2012, Capital expenditure approved by the Board of Directors for the purchase implementation of ERP system to the general insurance business is Rs.40,608,000/=. 2012

2011

Rs’000

107 30.

Contingencies In the opinion of the Directors, litigation which is currently against the company in the normal course of business will not have a significant impact on the reported financial results or future operation of the company.

31.

Going Concern Even though the company has made a marginal profit after tax amounting to Rs.8,175,000/- for the year ended period of December 31, 2012, at the statement of financial position date and the same date Company had accumulated losses of Rs. 378,663,000 /- (2011 – Rs.385,867,000 /-). According to the Statement of Solvency prepared by the management, Solvency Ratios of General Insurance business and Life Insurance business as at 31st December 2012 are 1.05 and 2.63 respectively.

32.

Number of Employees The total number of employees as at 31stDecember 2012 was 487 (2011 - 393 )

33.

Comparative Information Comparative balances have been reclassified wherever necessary to be in line with the current year presentation.

34.

Director’s Responsibility The board of directors of the company is responsible for the presentation of the financial statements.

Transactions with Key Management Personnel MBSL Insurance Co. Ltd considers its Board of Directors as the key management personnel of the company. The Directors emoluments for the year ended 31st December 2012 amounting to Rs 7,773,000/- Directors fees where applicable are paid directly to them. There are no short-term, long-term, post. Employment, terminal and share-based payments linked to the remuneration of the Directors and no ex-Gratia payments were made to Director during the year.

Company

Name of Director

Position

Relationship

Details of Financial Dealings

Merchant Bank of Sri Lanka PLC (MBSL PLC)

Mr. M. R. Shah Mr.A.P.G. Karunathilake Mr. K A D G L Kaluarachchi Mr. P.G.Rupasinghe

Chairman Past CEO Acting CEO Director

Merchant Bank of Sri Lanka Owns 78% of the Companyâ&#x20AC;&#x2122;s issued share capital

The company has entered into transactions in the normal course of business with MBSL PLC.

Merchant Credit of Sri Lanka Ltd (MCSL)

Mr. M. R. Shah Mr.A.P.G. Karunathilake

Director Director

No relationship with MBSL Insurance Company.

The company has entered into transactions in the normal course of business with MCSL.

MBSL Savings Bank Ltd

Mr. M. R. Shah Mr.A.P.G. Karunathilake Mr. P.G.Rupasinghe

Chairman Director Director

No relationship with MBSL Insurance Co. Ltd.

The company has entered into transactions in the normal course of business with MBSL Savings Bank Ltd.,

Lanka Securities (Pvt) Ltd

Mr. M. R. Shah

Director

No relationship with MBSL Insurance Co. Ltd.

The company has entered into transactions in the normal course of business with Lanka Securities (Pvt) Ltd.

108

35.

2012

2011

Rs’000

104,515

95,898

MBSL Savings Bank

15,274

16,349

Merchant Credit of Sri Lanka Limited

64,844

59,150

4,269

1,935

2,133

Related Party Transactions (Contd…)

35(b) Premium Received Merchant Bank of Sri Lanka PLC

Bank of Ceylon

982

6,910

192,017

180,242

Merchant Bank of Sri Lanka PLC

25,036

22,850

Merchant Credit of Sri Lanka Limited

11,478

6,567

4,525

5,330

Premium Receivables

MBSL Savings Bank PLC Lanka Securities (Pvt) Ltd

400

41,499

34,747

Merchant Bank of Sri Lanka PLC

63,130

52,126

Merchant Credit of Sri Lanka Limited

30,358

9,692

MBSL Savings Bank PLC

10,790

31,414

8,516

112,794

93,232

4,766

3,600

Bank of Ceylon

Claims Incurred

Bank of Ceylon

Key Management Personnel Compensation Directors Fees and Emoluments Audit Committee Fees

252

324

5,018

3,924

109

31.12.2011

01.01.2011

SLAS

Effect on Transition to SLFRS

31.12.2011 SLFRS Statement of financial position

SLAS

Effect on Transition to SLFRS

01.01.2011 SLFRS Statement of financial position

(14,596)

14,596

(11,717)

11,717

30,193

19,645

Notes

Assets Deferred Expenses

Property, Plant and Equipment Financial Instruments Financial Assets

588,133

6,940

581,193

401,896

(11,750)

413,646

Reinsurance Assets-Insurance Contracts

44,688

35,222

Income Tax Receivables

11,330

2,957

Loans to Life Policy Holders

1,455

(155)

1,610

262

(12)

274

Insurance Receivables

174,550

(13,420)

187,970

138,682

(13,499)

152,181

Other Assets

61,094

14,382

46,712

29,346

9,822

19,524

Cash and Cash Equivalents Total Assets

92,127

(0)

92,127

4,402

1,003,570

(6,849)

1,010,419

632,412

(27,156)

659,568

110 Shareholdersâ&#x20AC;&#x2122; Equity Stated Capital Accumulated Losses Fair Value Reserve

779,487

528,487

(386,097)

(230.27)

(385,867)

(390,002)

(1,281)

(388,721)

(2,414)

2,414

16,506

(16,506)

1,961

395,351

16,275

379,076

140,446

(3,695)

144,141

106,682

(8,528)

115,210

66,937

(11,744)

78,681

328,252

(14,596)

342,848

252,774

(11,717)

264,491

5,168

(0)

5,168

2,537

Borrowings

19,685

11,301

Insurance Payables

76,637

87,520

Life Insurance Fund Reserve Total Shareholdersâ&#x20AC;&#x2122; Equity Equity and Liabilities Liabilities Insurance Contract Liabilities - Life Insurance Contract Liabilities - Non Life Retirement Benefit

Trade and Other Payables Total Liabilities Total Equity and Liabilities

71,796

70,897

608,219

(23,124)

631,344

491,966

(23,461)

515,427

1,003,570

(6,849)

1,010,419

632,412

(27,156)

659,568

36.2

Statement of Comprehensive Income SLAS

Effect on Transition to SLFRS

Notes Gross Premium

Premium Ceded to Reinsurers Net written premium Fees and Commission Income Income from investments

Realized Gains Fair value Gains and Losses

Other Operating Revenue

Total Revenue Gross Benefits and Claims Paid Claims Ceded to Reinsurers Gross Change in Contract Liabilities

Change in Contract Liabilities ceded to Reinsurers Net Claims and Benefits Finance Costs Operating and Administrative Expenses

Total Benefits, Claims and Other Expenses Profit /(Loss ) Before Taxation Income Tax Expenses Loss After Taxation

SLFRS

718,492

(763)

719,255

(198,811)

(0)

(198,810)

519,681

(764)

520,445

56,252

43,843

285

43,558

2,945

(0)

2,945

10,546

(10,546)

11,592

(142)

11,734

114,632

10,689

103,943

634,313

9,925

624,388

(347,481)

87,037

(13,448)

825

(14,273)

(14,343)

(288,235)

825

(289,060)

(11,037)

(10,645)

(392)

(327,881)

(105)

(327,986)

(338,918)

(10,750)

(328,378)

(627,153)

(9,715)

(617,438)

7,160

210

6,950

(3,255)

3,905

210

3,695

Industry Segment Data - Statement Of Other Comprehensive Income 2011 Total Rsâ&#x20AC;&#x2122;000 Profit for the Year

3,905

3,695

Changes in Fair Value of Available for Sale Financial Assets

(18,920)

Actuarial gain/loss recognized during the year

(840)

Other Comprehensive Income for the Year Total Comprehensive Income For the Year

(19,760)

3,905

(16,065)

111

36.2

Statement of Comprehensive Income (Contd..)

A ,G

Reserve for Deferred Acquisition Expenses was classified under Insurance Contract Liabilities - Non-Life previously under previous SLASs. However, Sri Lanka Accounting Standard - SLFRS 4 “Insurance Contracts” does not permit to offset insurance assets against the liability. Therefore, the Company has reclassified the Deferred Acquisition Expenses from Liabilities to Assets.

The Company’s investments comprise treasury bills/bonds, repurchase agreements on Government securities, debentures, commercial papers, term deposits, quoted shares and unit trusts. The Company has categorize investments as required by LKAS 39, “Financial Instruments-Recognition and Measurement”

Interest on Policy Loans had been recognized on cash basis on previous years. Under new SLASs an LKASs interest on policy loans is recognized on Effective Interest Rate Method. Accordingly, impact has been adjusted to previous years.

According to LKAS 39, impairment losses have only been recognized on incurred losses of the Premium Receivable and no provision is made as a percentage. However, under previous SLASs percentage provision had been made on Premium Receivables. Further, corresponding amount of the premium recognized on due basis of Long Term Insurance is included in Premium Receivables.

According to LKAS 39, “Financial Instruments-Recognition and Measurement”, the amortized cost of financial asset includes the cumulative amortization using the effective interest rate method. Accordingly, the interest receivable has been added to the carrying value of the financial assets.

Insurance Contract Liabilities - Life in the Annual Financial Statements, consist of the impact to the Life Fund due to initial impact on the application of the Sri Lanka Accounting Standards applicable after 1st January 2011, as well as the unrealized gains and losses arising from Financial Investments classified as Available-for-Sale.

Premium income on Long Term Insurance Contracts was recognized when cash received under previous SLASs. Premium recognition was changed to due basis and has been retrospectively applied for the previous periods.

Under SLFRSs and LKASs an entity needs to recognize and measure interest income and expense using the Effective Interest Rate (EIR) method. As a result, relevant interest income for the two years has been adjusted to take the effect of the EIR.

J,K

Fair Value (Losses) have been previously classified under Finance Expenses have been reclassified and shown in the face of the Comprehensive Income Statement

The change is due to impact of change in premium recognition and interest on Policy Loans.

112

Non-life

Life

Insurance

Total

Rs’000

Assets Deferred Expenses

45,049

Property, Plant and Equipment

68,026

559

68,585

Financial Instruments 509,029

170,949

679,978

Available for Sale Financial Assets

Loans and Receivables

41,792

11,388

53,180

Financial Assets at Fair Value Through Profit and Loss

20,372

Reinsurance Assets-Insurance Contracts Income Tax Receivables Insurance Receivables Loans to Life Policy Holders Other Assets Cash and Cash Equivalents Total Assets

44,756

20,372 1,349

46,104

13,511

2,063

15,573

286,943

17,056

303,999

2,462

72,458

690

73,149

32,426

7,201

39,627

1,134,361

213,718

1,348,078

Equity and Liabilities Shareholders’ Equity Stated Capital Accumulated Losses Fair Value Reserve Life Insurance Fund Reserve Total Shareholders’ Equity

757,487

22,000

779,487

(378,664)

(1,935)

1,961

378,849

22,000

400,849

166,086

571,068

5,537

3,134

8,669

27,510

132

27,642

Liabilities Insurance Contract Liabilities Insurance Contract Liabilities - Non Life Retirement Benefit Borrowings Insurance Payables Trade and Other Payables Total Equity and Liabilities

47,265

1,934

49,199

104,132

20,431

124,564

755,512

191,718

947,229

1,134,361

213,718

1,348,077

113

Non-life

Life

Insurance

Total

Rs’000

Assets Deferred Expenses

14,596

Property, Plant and Equipment

29,917

274

30,192

Loans and Receivables

113,443

50,786

164,229

Available for Sale Financial Assets

293,723

91,195

384,918

32,047

41,433

3,255

44,688

Financial Instruments

Financial Assets at Fair Value Through Profit and Loss Reinsurance Assets-Insurance Contracts Income Tax Receivables Insurance Receivables Loans to Life Policy Holders Other Assets Cash and Cash Equivalents Total Assets

10,415

915

11,330

175,046

12,924

187,970

1,610

46,624

46,714

90,968

1,159

92,127

848,212

162,208

1,010,420

757,487

22,000

779,487

(385,866)

(16,506)

Equity and Liabilities Shareholders’ Equity Stated Capital 114

Accumulated Losses Fair Value Reserve Life Insurance Fund Reserve Total Shareholders’ Equity

1,961

357,076

22,000

379,076

Liabilities Insurance Contract Liabilities Insurance Contract Liabilities - Non Life Retirement Benefit

115,211

342,848

3,130

2,039

5,168

Borrowings

19,096

588

19,684

Insurance Payables

70,763

5,873

76,636

Trade and Other Payables

55,299

16,497

71,796

491,136

140,208

631,344

848,212

162,208

1,010,420

Total Liabilities and Shareholders’ Equity

Non-life

Life

Total

Insurance

Rs’000

Deferred Expenses

11,717

Property, Plant and Equipment

19,218

426

19,644

Assets

Financial Instruments Loans and Receivables Available for Sale Financial Assets

278,162

100,783

378,945

Financial Assets at Fair Value Through Profit and Loss

34,701

Reinsurance Assets-Insurance Contracts

35,002

Income Tax Receivables Insurance Receivables Loans to Life Policy Holders Other Assets Cash and Cash Equivalents Total Assets

34,701 220

35,222

2,957

140,023

12,159

152,183

274

18,117

1,407

19,524

422

3,981

4,402

540,319

119,250

659,569

Equity and Liabilities Shareholders’ Equity Stated Capital

506,487

22,000

528,487

(388,721)

Fair Value Reserve

2,414

Life Insurance Fund Reserve

1,961

122,141

22,000

144,141

78,681

264,490

1,604

933

2,537

Accumulated Losses

Total Shareholders’ Equity Liabilities Insurance Contract Liabilities Insurance Contract Liabilities - Non Life Retirement Benefit Borrowings

10,918

383

11,301

Insurance Payables

82,686

4,835

87,521

Trade and Other Payables Total Liabilities and Shareholders’ Equity

58,479

12,418

70,897

418,178

97,250

515,428

540,319

119,250

659,569

115

Gross Premiums Premium Ceded to Reinsurers Net Premiums

Non-life

Life

Insurance

Total

Rs’000

864,233

192,780

1,057,013

(140,944)

(13,512)

(154,456)

723,289

179,268

902,557

Fees and Commission Income

38,909

2,920

41,829

Income from Investments

69,411

21,777

91,188

669

5,454

Realized Gains Fair Value Gains and Losses Other Revenue

Total Revenue Gross Benefits and Claims Paid Claims Ceded to Reinsurers Gross Change in Contract Liabilities Change in Contract Liabilities Ceded to Reinsurers Net Claims and Benefits

13,676

372

14,048

128,119

25,068

153,188

851,408

204,337

1,055,745

(532,246)

(6,656)

(538,902)

77,373

2,480

79,853

(12,814)

(47,059)

(59,872)

2,223

1,214

3,436

(465,464)

(50,021)

(515,485) -

116 Finance Costs Operating and Administrative Expenses

Total Benefits, Claims and Other Expenses Profit /(Loss ) before Taxation Income Tax Expenses Profit after Taxation

(7,149)

(256)

(7,405)

(367,196)

(154,061)

(521,257)

(374,345)

(154,317)

(528,662)

(839,809)

(204,337)

(1,044,146)

11,599

(3,425)

8,173

Industry Segment Data - Statement Of Other Comprehensive Income 2012 Profit for the Period Changes in Fair Value of Available for Sale Financial Assets Actuarial Gain/ Loss Recognised during the Period

8,173

14,571

(971)

Other Comprehensive Income for the Period

13,600

Total Comprehensive Income for the Period

21,773

Restated Non-life

Life

Insurance

Total

Rs’000

575,335

143,920

719,255

(187,016)

(11,795)

(198,810)

388,319

132,126

520,444

Fees and Commission Income

54,296

1,956

56,252

Income from Investments

34,222

9,336

43,558

2,945

(10,546)

Gross Premium Premium Ceded to Reinsurers Net Written Premium

Realized Gains Fair Value Gains and Losses Other Operating Revenue

Total Revenue Gross Benefits and Claims Paid

11,586

149

11,734

92,502

11,441

103,943

480,821

143,566

624,387

(338,608)

(8,873)

(347,481)

Claims Ceded to Reinsurers

82,467

4,570

87,037

Gross Change in Contract Liabilities

26,280

(40,552)

(14,273)

Change in Contract Liabilities Ceded to Reinsurers Net Claims and Benefits Finance Costs Operating and Administrative Expenses

Total Benefits, Claims and Other Expenses Profit/(Loss ) Before Taxation Income Tax Expenses Profit After Taxation

(14,298)

(45)

(14,343)

(244,159)

(44,900)

(289,059)

(392)

(229,321)

(98,666)

(327,987)

(229,712)

(98,666)

(328,378)

(473,871)

(143,566)

(617,438)

6,950

(3,255)

3,695

Industry Segment Data - Statement Of Other Comprehensive Income 2011 Profit for the Period Changes in Fair Value of Available for Sale Financial Assets Actuarial Gain/Loss Recognized during the Year

(18,920)

(840)

Other Comprehensive Income for the Period

(19,760)

Total Comprehensive Income For the Period

(16,065)

117

Non-life

Life

Insurance

Total

Rs’000

Cash flows from operating activities Premium received from policy holders

967,742

188,647

1,156,390

Reinsurance premium paid

(164,442)

(17,451)

(181,892)

Claims and benefits paid

(537,578)

(532,246)

(5,332)

Reinsurance receipts in respects of claims

74,051

4,387

78,437

Cash paid to and on behalf of employees

(101,557)

(8,487)

(110,044)

Interest received Interest paid Other operating cash payments Net cash (used) / generated from operating activities (Note A)

68,691

21,778

90,468

(7,149)

(256)

(7,405)

(304,604)

(176,379)

(480,983)

486

6,907

7,393

(51,442)

(410)

(51,852)

(51,409)

(410)

(51,819)

Cash flows from investing activities Purchase of property, plant and equipment Proceeds on sale of property, plant and equipment Net cash used in investing activities

Cash flows from financing activities 118

Proceeds from issue of share capital

Net cash from financing activities

(50,923)

6,497

(44,426)

(Decrease) / increase in cash and cash equivalents (Note B) (A) Reconciliation of loss before tax with net cash used in operating activities Profit before tax Purchase of fair value through profit or loss financial assets Proceeds from fair value through profit or loss financial assets Fair Value Gains Recognized in the Income Statement Purchase of Available for sale financial assets Proceeds from Available for sale financial assets Fair Value Gains Recognized in the Income Statement

11,599

(84,706)

101,834

(1,648,246)

(325,878)

(1,974,124)

1,914,747

405,685

2,320,431

(14,572)

Increase in Loans and Receivables

(370,371)

(120,164)

(490,535)

Increase in trade receivables and other assets

(147,574)

(7,912)

(155,486)

50,876

Increase in provision for life business Increase in net unearned premiums and deferred acquisition costs (Decrease) /Increase in other liabilities Provision for gratuity

197,767

24,304

3,081

27,385

2,405

1,095

3,500

Depreciation on property, plant & equipment

13,299

125

13,424

Net cash generated from operating activities

486

6,907

7,393

(B) Decrease in cash and cash equivalents Cash and cash equivalents for the previous year

71,935

571

72,506

Cash and cash equivalents for the current year (Note 08)

21,013

7,068

28,081

(50,923)

6,497

(44,426)

Decrease in cash and cash equivalents

Non-life

Life

Insurance

Total

Rs’000

Cash flows from operating activities Premium Received from Policy Holders

644,949

143,156

788,105

Reinsurance Premium Paid

(180,584)

(11,795)

(192,379)

Claims and Benefits Paid

(338,608)

(8,365)

(346,973)

82,467

4,570

87,037

(63,169)

(4,867)

(68,036)

33,868

9,421

43,289

(369)

Other operating cash payments

(327,947)

(135,123)

(463,070)

Net cash (used) / generated from operating activities (Note A)

(149,393)

(3,002)

(152,396)

(19,598)

(25)

(19,622)

(19,598)

(25)

(19,622)

Reinsurance Receipts in Respects of Claims Cash Paid to and on Behalf of Employees Interest received Interest paid

Cash flows from investing activities Purchase of property, plant and equipment Proceeds on sale of property, plant and equipment Net cash used in investing activities

Cash flows from financing activities Proceeds from issue of share capital

251,000

Net cash from financing activities

251,000

82,009

(3,027)

78,982

(Decrease) / increase in cash and cash equivalents (Note B)

251,000

A) Reconciliation of loss before tax with net cash used in operating activities Profit before tax

6,950

(119,775)

Proceeds from fair value through profit or loss financial assets

122,428

Fair Value Gains/ Losses Recognized in the Income Statement

10,546

(606,893)

(182,495)

(789,388)

531,287

173,897

705,184

Purchase of fair value through profit or loss financial assets

Purchase of Available for sale financial assets Proceeds from Available for sale financial assets Fair Value Gains Recognized in the Income Statement

(18,920)

Increase in Loans and Receivables

(61,292)

(35,023)

(96,314)

Increase in trade receivables and other assets

(83,773)

(3,046)

(86,819)

40,435

75,478

(15,855)

1,949

(13,906)

1,526

1,106

2,631

Increase in provision for life business Increase in net unearned premiums and deferred acquisition costs (Decrease) /Increase in other liabilities Provision for gratuity Depreciation on property, plant & equipment

8,899

176

9,075

Net cash generated from operating activities

(149,394)

(3,002)

(152,396)

(B) Decrease in cash and cash equivalents Cash and cash equivalents for the previous year

(10,073)

3,598

(6,476)

Cash and cash equivalents for the current year (Note 08)

71,935

571

72,506

Decrease in cash and cash equivalents

82,009

(3,027)

78,982

119

Non-life

Life

Insurance

Total

Rs’000

Cash flows from operating activities Premium received from policy holders Reinsurance premium paid Claims and benefits paid

468,855

89,984

558,840

(72,369)

(8,307)

(80,676)

(208,351)

(2,312)

(210,662)

Reinsurance receipts in respects of claims

5,167

(270)

4,897

Cash paid to and on behalf of employees

(42,667)

(14,706)

(57,373)

21,937

7,489

29,426

Interest received Interest paid

(156)

(312)

Other operating cash payments

(222,321)

(71,526)

(293,848)

Net cash (used) / generated from operating activities (Note A)

(49,905)

197

(49,709)

(5,835)

(5)

(5,840)

1,351

(4,484)

(5)

(4,489)

50,000

Cash flows from investing activities Purchase of property, plant and equipment Proceeds on sale of property, plant and equipment Net cash used in investing activities Cash flows from financing activities Proceeds from issue of share capital 120

Net cash from financing activities (Decrease) / increase in cash and cash equivalents (Note B)

50,000

(4,389)

192

(4,198)

11,259

(A) Reconciliation of loss before tax with net cash used in operating activities Profit before tax Purchase of fair value through profit or loss financial assets Proceeds from fair value through profit or loss financial assets

3,348

(125,462)

(18,225)

(143,687)

2,414

(24,640)

(8,487)

(33,127)

37,172

37,170

Increase in net unearned premiums and deferred acquisition costs

32,082

(Decrease) /Increase in other liabilities

43,003

(10,924)

32,079

522

417

939

Fair Value Gains Recognized in the Income Statement Purchase of Available for sale financial assets Proceeds from Available for sale financial assets Fair Value Gains Recognized in the Income Statement Increase in Loans and Receivables Increase in trade receivables and other assets Increase in provision for life business

Provision for gratuity Depreciation on property, plant & equipment Net cash generated from operating activities

7,569

244

7,813

(49,904)

197

(49,709)

(B) Decrease in cash and cash equivalents Cash and cash equivalents for the previous year Cash and cash equivalents for the current year (Note 08) Decrease in cash and cash equivalents

(5,684)

3,406

(2,278)

(10,073)

3,598

(6,475)

(4,389)

192

(4,198)

Company Assets Investments Property Plant and Equipment Loans to life policy holder Current tax recievable Reinsurance Receivable

2012

2011

2010

2009

2008

753,530

581,194

413,646

258,210

139,448

68,585

30,191

19,644

22,075

29,882

4,801

2,462

1,610

274

15,574

11,330

2,957

46,104

44,688

35,222

4,983

734

Premium Receivable from Policyholders

303,999

187,970

152,182

132,420

151,289

Other Assets

118,197

61,310

31,241

27,792

28,731

39,627

92,127

4,402

3,806

8,051

1,348,078

1,010,420

659,568

449,365

358,214

Insurance Provision

737,155

458,058

343,171

224,314

137,442

Other Liabilities

124,563

71,796

70,897

65,283

55,164

49,199

76,637

87,521

65,053

58,493 1,257

Cash and Cash Equivalents Total Assets Liabilities and Shareholders’ Equity Liabilities

Reinsurance Creditors Retirement Benefit Obligation

8,669

5,168

2,537

2,013

27,642

19,685

11,301

6,717

947,229

631,344

515,427

363,380.00

252,356.00

779,487

528,487

478,487

378,487

Revenue Reserves

(378,664)

(385,866)

(388,721)

(394,465)

(274,590)

Fair Value Reserve

(1,935)

(16,506)

2,414

Borrowing Total Liabilities Shareholders’ Equity Stated Capital

Life insurance fund reserve

1,961

Total Shareholders’ Equity

400,849

379,076

144,141

85,983.00

105,858.00

1,348,078

1,010,420

659,568

449,363.00

358,214.00

182,337

141,981

100,783

80,936

55,297

559

274

426

692

944

2,462

1,610

274 450

734

3,017

3,084

Total Liabilities and Shareholders’ Equity LIFE INSURANCE Assets Investments Property, Plant and Equipment Loans to life policy holders Reinsurance Receivable Premium Receivable Tax Recievable Other Assets Cash and Cash Equivalents Total Assets

1,349

3,255

220

17,056

12,924

12,159

2,063

915

690

1,407

7,201

1,159

3,981

3,420

2,739

213,718

162,208

119,250

88,515.00

62,798.00

166,086

115,210

78,681

41,336

28,842

Liabilities Insurance Provision - Life Other Liabilities

20,431

16,497

12,418

23,357

8,351

Reinsurance Creditors

1,934

5,873

4,835

1,218

3,472

Retirement Benefit Obligation

3,134

2,039

933

604

133

132

588

383

Borrowing Total Liabilities

191,718

140,208

97,250

66,515.00

40,798.00

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122

Proposed Branches & Sub Offices 1. Akuressa 2. Chavakachcheri 3. Chunnakam 4. Delgoda 5. Eheliyagoda 6. Gampola 7. Giriulla 8. Hatton 9. Homagama 10. Ja-Ela 11. Kalmunai 12. Kanthale 13. Kiridiwela 14. Lunuwatta 15. Mahaoya 16. Mawanella 17. Muthur 18. Neluwa 19. Nugegoda 20. Padukka 21. Pettah 22. Potuwil 23. Puttalam 24. Ragala 25. Siyabalanduwa 26. Thalawathugoda 27. Warakapola 28. Wattala 29. Yatiyanthota

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General

011 2304500

Managing Director’s Office Mr. Sydney Gajanayake Managing Director

071 2732341

Life Insurance Mr. D.C. Kevitiyagala General Manager

077 2447026

info@mbslinsurance.lk sydney@mbslinsurance.lk

011 4739962

kevi@mbslinsurance.lk

Mr. Mahendra Wilegoda Assistant General Manager – Life Insurance

077 3733705

mahendra@mbslinsurance.lk

Mr. Rasika Nilanka Manager – Life New Business

077 3098849

rasika@mbslinsurance.lk

General Insurance Mr. Neil De Silva General Manager

124

011 2300499

077 3098843

011 4739919

neil@mbslinsurance.lk

Mr. Chinthaka Kodithuwakku Manager – Motor Claims

077 3600846

chinthakak@mbslinsurance.lk

Mr. Dinuka Fernando Manager – General Insurance

077 3458714

dinuka@mbslinsurance.lk

Mr. Dhanushka Hettiarachchi Manager – General Insurance

077 3746892

dhanushkah@mbslinsurance.lk

Mrs. Nilmini Amarasekera Manager - General Insurance

077 2447706

nilmini@mbslinsurance.lk

Finance Mr. Nadeeth De Alwis Head of Finance Mr. Lakshitha Jayasinghe Manager – Finance

077 7254381

011 4346904

nadeeth@mbslinsurance.lk

077 3601748

lakshithaj@mbslinsurance.lk

077 2854718

heshanr@mbslinsurance.lk

Mr. Suraj Fernando Snr. Sales Manager - CBDU

077 3918019

surajf@mbslinsurance.lk

Mr. Kuma Agalawela Snr. Sales Manager - CBDU

077 7425029

kuma@mbslinsurance.lk

Mr. Thushara De Silva Snr. Sales Manager – CBDU

077 7425037

thusharas@mbslinsurance.lk

Mr. R. C. Poshitha Snr. Sales Manager – CBDU

077 3600849

poshitha@mbslinsurance.lk

Mr. Irosh Cooray Sales Manager – CBDU

077 4750300

irosh@mbslinsurance.lk

Corporate Business Development Unit Mr. Heshan Ratwatte Manager – Broker Operations

Sales, Branch Operation & Training Mr. M. Nimal Assistant General Manager – Sales, Branch Operations and Training Mr. Kuruppuaracchi Manager Training and Development

077 3635291

077 7252021

011 4346907

nimal@mbslinsurance.lk

keelo@mbslinsurance.lk

Human Resources & Administration Mr. Indika Herath Manager â&#x20AC;&#x201C; HR & Adm.

077 3458713

Legal Ms. Ushani Fernando Snr. Manager â&#x20AC;&#x201C; Legal

077 2674754

ushani@mbslinsurance.lk

Information Technology Mr. Indika Kumarasinghe Head of IT

077 2076917

indikak@mbslinsurance.lk

011 4739909

indika@mbslinsurance.lk

Branches & Sub Offices Ambalangoda Mr. Priyantha Sujeewa Assistant Branch Manager

091 4943757 077 7376669

091 4943758

ambalangoda@mbslinsurance.lk sujeewa@mbslinsurance.lk

Ambalanthota

047 4927522

047 4927572

ambalantota@mbslinsurance.lk

Ampara Mr. R M H Bandara Branch Manager

063 4925112 077 7748353

063 4890177

ampara@mbslinsurance.lk bandarar@mbslinsurance.lk

Anamaduwa Mr. A M A S Shantha Officer in charge

032 4929679 072 5764407

032 4927816

anamaduwa@mbslinsurance.lk

Anuradhapura Mr. Nalin Dasanayake Regional Manager

025 4924313 077 3635290

025 4924253

anuradhapura@mbslinsurance.lk nalin@mbslinsurance.lk

Avissawella Mr. Sarath Hemachandra Branch Manager

036 4624169 077 3918010

036 2233448

avissawella@mbslinsurance.lk sarath@mbslinsurance.lk

Baddegama Mr. M.N.Priyantha De Zoysa Officer in charge

091 4943182 077 4153660

091 4943183

baddegama@mbslinsurance.lk

Baddulla Mr. Chaminda Liyadipitiya Acting Zonal Manager

055 4924763 077 3831173

055 492 91 98

badulla@mbslinsurance.lk chaminda@mbslinsurance.lk

Balangoda Mr.S. K. R. W. Ravindra Assistant Branch Manager

045 4928091 077 2117556

045 4928092

balangoda@mbslinsurance.lk

Bandarawella Mr.Sanjeewa Jayathilake Asst. Branch Manager

057 4926976 077 7126636

057 4926915

bandarawela@mbslinsurance.lk

Batticaloa Mr. A. Santhakumar Branch Manager

065 4923806 077 6231425

065 4923805

batticlore@mbslinsurance.lk nagarajahs@mbslinsurance.lk

Bingiriya Mr. Nawarathna Weerasooriya Officer In Charge

032 4928943 077 3910750

032 4928944

bingiriya@mbslinsurance.lk

Chilaw Mr. D.B.A. Jayarathne Assistant Branch Manager

032 4923577 077 2518928

0322224973

chilaw@mbslinsurance.lk jayarathne@mbslinsurance.lk

City Office Mr. P S Rubasinghe Branch Manager

011 4343869 077 7424859

0114343865

city@mbslinsurance.lk prasadr@mbslinsurance.lk

Dambulla Mr. N.G. Herath Branch Manager

066 4928058 077 3427150

0664928550

dambulla@mbslinsurance.lk nimalsirih@mbslinsurance.lk

Elpitiya Mr. Priyantha Dayarathne Officer In Charge

091 4943773 077 2915390

091 4943774

elpitiya@mbslinsurance.lk

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Embilipitiya Mr. J. F. A.Gamage Branch Manager

047 4927846 077 3785915

047 2261838

embilipitiya@mbslinsurance.lk asankaf@mbslinsurance.lk

Galle Mr. Niroshan Manawadu Snr. Branch Manager

091 4937221 077 2931679

091 4384007

galle@mbslinsurance.lk manawadu@mbslinsurance.lk

Gampaha Mr. L H S D Lelwala Assistant Branch Manager

033 4929278 077 3440070

033 2234270

gampaha@mbslinsurance.lk lelwalas@mbslinsurance.lk

Horana Mr. M Manjula Jayaweera Branch Manager

034 4947404 077 3440035

034 4283157

horana@mbslinsurance.lk manjulaj@mbslinsurance.lk

Horowpathana Ms.O.S.A.De Silva Officer In Charge

025 4928722 077 2406336

025 4928723

horowpathana@mbslinsurance.lk

Jaffna Mr. V.S.V. Sarma Zonal Manager

021 4920280 077 3440043

021 2221535

jaffna@mbslinsurance.lk sarmav@mbslinsurance.lk

Kaduwela Mr. Palitha Wellangiriya Regional Manager

011 4375639 077 3440079

011 4641974

kaduwela@mbslinsurance.lk

Kahawatta Mr. Poornaka Chandrarathna Officer In Charge

045 4928283 077 3566829

045 4928089

kahawatta@mbslinsurance.lk

Kalpitiya Mr. Mervin Fernando Officer In Charge

032 4928458 077 8213999

032 4928458

kalpitiya@mbslinsurance.lk

Kalutara Mr. M M R J K Cooray Assistant Branch Manager

034 4947601 077 3440065

034 4947261

kaluthara@mbslinsurance.lk jeewank@mbslinsurance.lk

Kandy Mr. P.S.B. Hippola Acting Regional Manager

081 4933559 077 2447149

081 4481768

kandy@mbslinsurance.lk hippola@mbslinsurance.lk

Kegalle G. G. K. A. K. Rathnayake Senior Branch Manager

035 4928584 077 3918025

035 4928733

kegalle@mbslinsurance.lk kelum@mbslinsurance.lk

Kilinochchi Mr. S. SivanantharasaÂ Assistant Branch Manager

021 4925609 077 2017653

021 4925609

kilinochchi@mbslinsurance.lk

Kiribathgoda Mr. Dharshana Ranasinghe Branch Manager

011 4343216 077 3422597

0114339643

kiribathgoda@mbslinsurance.lk

Kuliyapitiya Mr. P.G.D.N. Premalal Senior Branch Manager

037 4944475 077 7764610

037 4944476

kuliyapitiya@mbslinsurance.lk nishanthap@mbslinsurance.lk

Kurunegala Mr. P.G.D.N. Premalal Senior Branch Manager

037 4931086 077 7764610

037 4641012

kurunegala@mbslinsurance.lk nishanthap@mbslinsurance.lk

Mahiyanganaya Mr. Y.M.Gunadasa Officer In Charge

055 4929261 077 1298467

0554929261

mahiyanganaya@mbslinsurance.lk

Mannar Mr. V. Shankaralingam Officer In Charge

023 2250881 077 2109811

0234920020

mannar@mbslinsurance.lk

Marawila Mr. W.D.Suresh Fernando Officer In Charge

032 4927797 071 5526540

032 4927798

marawila@mbslinsurance.lk

Matara Mr. Anura Pandipperuma Acting Zonal Manager

041 4923372 077 3850630

041 2221073

matara@mbslinsurance.lk anura@mbslinsurance.lk

Mathale Mr. P.S.B. Hippola Acting Regional Manager

066 4928935 077 2447149

066 4928936

matale@mbslinsurance.lk hippola@mbslinsurance.lk

Monaragala Mr. D. G. W. N. Witharana Assistant Branch Manager

055 4928203 077 3440013

055 4924783

monaragala@mbslinsurance.lk

Mulaitivu Mr. K.Kirushnatharisan Officer In Charge

021 2290082 077 8218354

0212290084

mullaitivu@mbslinsurance.lk

Negombo Mr. Champika Priyantha Branch Manager

031 4926647 077 3602219

031 2227667

negombo@mbslinsurance.lk champika@mbslinsurance.lk

Nelliyadi Mr. Ragukulanath Officer In Charge

021 4923493 077 7376640

0214923729

nelliady@mbslinsurance.lk ragu@mbslinsurance.lk

Nuwara Eliya Mr. Wasantha Wijesinghe Branch Manager

052 4922641 077 3376416

0522222340

nuwaraeliya@mbslinsurance.lk

Padaviya Mr. Sisira Kumara Officer In Charge

025 4928507 077 2701674

025 4928507

padaviya@mbslinsurance.lk

Panadura Mr. Kamal Keerthidewa Assistant Branch Manager

038 4927020 077 7809592

0382235682

panadura@mbslinsurance.lk

Polonnaruwa Mr. B. A. W.Arachchi Branch Manager

027 4924671 077 9858217

027 4924758

polonnaruwa@mbslinsurance.lk

Ratnapura Karunaratne Abeysinghe Branch Manager

045 2224999 077 3862983

045 4927237

ratnapura@mbslinsurance.lk abeysinghek@mbslinsurance.lk

Thambutthegama Mr. Keerthi Bandara Office In Charge

025 4928958 077 2724614

0254928957

thambutthegama@mbslinsurance.lk

Tissamaharama Mr. Nihal Hettige Office In Charge

047 4934021 077 1257809

047 493145

tissamaharama@mbslinsurance.lk

Trincomalee Mr. K. Rajanikanth Assistant Branch Manager

026 4924854 077 3733707

026 4595353

trincomalee@mbslinsurance.lk rajinikanth@mbslinurance.lk

Valachchenai Mr. S.Yogeswaran Office In Charge

065 4926798 077 2402389

0654926869

valachchena@mbslinsurance.lk

Vauniya Mr. V. Kathirchchelvan Regional Manager

024 4924960 077 3601749

024 4588672

vavuniya@mbslinsurance.lk kadir.v@mbslinsurance.lk

Wattala Mr. A. H. S. Kolitha Office In Charge

011 4347270 077 3917319

Welimada Mr. M.S. Fernando Assistant Branch Manager

057 4926097 077 3031928

0572244465

welimada@mbslinsurance.lk

Wennappuwa Mr.E.M.Ranjith Somasiri Office In Charge

031 4936770 077 8217051

031 2252588

wennappuwa@mbslinsurance.lk

wattala@mbslinsurance.lk kolitha@mbslinsurance.lk

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128

129

130

131

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