INTERIM FINANCIAL STATEMENTS - FOR THE YEAR ENDED 31ST MARCH 2024

SOFTLOGIC LIFE INSURANCE PLC

INCOME STATEMENT

For the Period ended 31 March

Note

2024

2023

Change

Rs. ' 000

Rs. ' 000

%

Audited

Audited

Gross written premiums

5

7,162,827

5,984,618

20

Premiums ceded to reinsurers

(635,640)

(639,612)

(1)

Net written premiums

6,527,187

5,345,006

22

Other revenue

Net finance income

1,764,710

1,732,591

2

Net realised gains

581,700

39

1491438

Net fair value (losses)/ gains

(427,083)

207,236

306

Other operating income

1,945

2,562

(24)

Total other revenue

1,921,272

1,942,428

(1)

Total net revenue

6

8,448,459

7,287,434

16

Net benefits, claims and expenses

Net insurance benefits and claims paid

(3,367,726)

(3,188,942)

6

Net change in insurance claims outstanding

(57,416)

47,830

(220)

Change in insurance contracts liabilities

(557,262)

65,026

(957)

Underwriting and net acquisition cost (Net of reinsurance)

(1,490,712)

(1,371,103)

9

Other operating and administration expenses

(1,495,699)

(1,261,235)

19

Impairment reversal / (provision) on financial investments

117,878

(156,114)

(176)

Finance cost

7

(401,350)

(602,136)

(33)

Total benefits, claims and expenses

(7,252,287)

(6,466,674)

12

Profit before tax

8

1,196,172

820,760

46

Income tax expenses

(342,559)

(319,124)

7

Profit for the period

853,613

501,636

70

Profit attributable to;

Owners of the Company

853,613

501,636

70

Non controlling interest

-

-

853,613

501,636

70

Earnings per share

Basic earnings per share (Rs.)

17

2.28

1.34

70

Diluted earnings per share (Rs.)

17

2.28

1.34

70

The Notes form an integral part of these Interim Financial Statements.

Page 2 of 17

SOFTLOGIC LIFE INSURANCE PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the Period ended 31 March

2024

2023

Change

Rs. ' 000

Rs. ' 000

%

Audited

Audited

Profit for the period

853,613

501,636

70

Other comprehensive income

Items that will not be reclassified to income statement

Equity investments at FVOCI - net change in fair value

(55,427)

206,864

Equity investments at FVOCI - net change in fair value - Life fund

37,873

(15,462)

Related tax / deferred tax

-

-

(17,554)

191,402

(109)

Items that are or may be reclassified subsequently to income statement

Debt investments at FVOCI - net change in fair value

(1,186)

64

Debt investments at FVOCI - net change in fair value - Life fund

4,711

17,495

Debt investments at FVOCI - reclassified to income statement

-

221

Related tax / deferred tax

-

-

3,525

17,780

(80)

Total other comprehensive income for the period, net of tax

(14,029)

209,182

(107)

Total comprehensive income for the period, net of tax

839,584

710,818

18

Total comprehensive income attributable to:

Owners of the Company

839,584

710,818

Non - controlling interests

-

-

839,584

710,818

18

The Notes form an integral part of these Financial Statements.

Page 3 of 17

SOFTLOGIC LIFE INSURANCE PLC

STATEMENT OF FINANCIAL POSITION

As at

Note

31.03.2024

31.12.2023

Rs. ' 000

Rs. ' 000

Audited

Audited

Assets

Intangible assets

2,167

2,364

Property, plant and equipment

717,231

707,427

Right of use assets

673,822

611,661

Deferred Tax Assets

838,938

838,938

Financial investments

10

43,457,777

43,500,215

Loans to life policyholders

328,870

331,301

Reinsurance receivables

590,744

465,211

Premium receivables

2,190,171

2,449,089

Receivables and other assets

1,620,368

1,333,537

Cash and cash equivalents

1,353,313

1,099,679

Total assets

51,773,401

51,339,422

Equity and liabilities

Equity

Stated capital

16

1,062,500

1,062,500

Restricted regulatory reserve

798,004

798,004

Other reserves

(2,158,921)

(2,144,892)

Retained earnings

13,065,097

13,617,734

Total equity

12,766,680

13,333,346

Liabilities

Insurance contract liabilities

11

28,549,811

27,925,474

Employee benefit liabilities

282,317

276,302

Loans and borrowings

4,802,677

5,014,997

Reinsurance payables

909,082

718,855

Other liabilities

4,093,218

3,693,758

Bank overdraft

369,616

376,690

Total liabilities

39,006,721

38,006,076

Total equity and liabilities

51,773,401

51,339,422

Net asset per share (Rs.)

15

34.04

35.56

The Notes form an integral part of these Interim Financial Statements.

These Financial Statements are in compliance with the requirements of the Companies Act No 07 of 2007.

Sgd.

Nuwan Withanage

Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Approved and signed for and on behalf of the Board.

Sgd.

Sgd.

Ashok Pathirage

Iftikar Ahamed

Chairman

Managing Director

Colombo

07 May 2024

Page 4 of 17

SOFTLOGIC LIFE INSURANCE PLC

STATEMENT OF CHANGES IN EQUITY

Stated capital

Restricted

Other

Retained

Total

For the Period ended 31 March

regulatory

reserve

earnings

reserve

Fair value Revaluation

reserve

reserves

Rs. ' 000

Rs. ' 000

Rs. ' 000

Rs. ' 000

Rs. ' 000

Rs. ' 000

Balance as at 01 January 2023

1,062,500

798,004

(3,229,988)

129,733

12,112,675

10,872,924

Profit for the period

-

-

-

-

501,636

501,636

Other comprehensive income for the period

Equity investments at FVOCI - net change in fair value

-

-

206,864

-

-

206,864

Equity investments at FVOCI - net change in fair value - Life fund

-

-

(15,462)

-

-

(15,462)

Debt investments at FVOCI - net change in fair value

-

-

64

-

-

64

Re-measurement Gain on defined benefit liabilities

-

-

-

-

-

-

Gain on revaluation of land and building

-

-

-

-

-

-

Debt investments at FVOCI - net change in fair value - Life fund

-

-

17,495

-

-

17,495

Debt investments at FVOCI - reclassified to income statement

-

-

221

-

-

221

Total other comprehensive income, net of tax

-

-

209,182

-

-

209,182

Total comprehensive income for the period

-

-

209,182

-

501,636

710,818

Transaction with owners of the Company

Contribution and distribution

Interim dividend - 2022

-

-

-

-

(1,312,500)

(1,312,500)

Total transactions with owners of the Company

-

-

-

-

(1,312,500)

(1,312,500)

Balance as at 31 March 2023

1,062,500

798,004

(3,020,806)

129,733

11,301,811

10,271,242

Profit for the period

-

-

-

-

2,336,768

2,336,768

Other comprehensive income for the period

Equity investments at FVOCI - net change in fair value

-

-

399,844

-

-

399,844

Equity investments at FVOCI - net change in fair value - Life fund

-

-

58,595

-

-

58,595

Debt investments at FVOCI - net change in fair value

-

-

42,577

-

-

42,577

Re-measurement Gain on defined benefit liabilities

-

-

-

-

(20,845)

(20,845)

Gain on revaluation of land and building

-

-

-

43,783

-

43,783

Debt investments at FVOCI - net change in fair value - Life fund

-

-

200,892

-

-

200,892

Debt investments at FVOCI - reclassified to income statement

-

-

490

-

-

490

Total other comprehensive income, net of tax

-

-

702,398

43,783

(20,845)

725,336

Total comprehensive income for the period

-

-

702,398

43,783

2,315,923

3,062,104

Balance as at 31 December 2023

1,062,500

798,004

(2,318,408)

173,516

13,617,734

13,333,346

Profit for the period

-

-

-

-

853,613

853,613

Other comprehensive income for the period

Equity investments at FVOCI - net change in fair value

-

-

(55,427)

-

-

(55,427)

Equity investments at FVOCI - net change in fair value - Life fund

-

-

37,873

-

-

37,873

Debt investments at FVOCI - net change in fair value

-

-

(1,186)

-

-

(1,186)

Re-measurement losses on defined benefit liabilities

-

-

-

-

-

-

Gain on revaluation of land and building

-

-

-

-

-

-

Debt investments at FVOCI - net change in fair value - Life fund

-

-

4,711

-

-

4,711

Debt investments at FVOCI - reclassified to income statement

-

-

-

-

-

-

Total other comprehensive income, net of tax

-

-

(14,029)

-

-

(14,029)

Total comprehensive income for the period

-

-

(14,029)

-

853,613

839,584

Transaction with owners of the Company

Contribution and distribution

Interim Dividend - 2023

-

-

-

-

(1,406,250)

(1,406,250)

Total transaction with owners of the Company

-

-

-

-

(1,406,250)

(1,406,250)

Balance as at 31 March 2024

1,062,500

798,004

(2,332,437)

173,516

13,065,097

12,766,680

Page 5 of 17

SOFTLOGIC LIFE INSURANCE PLC

STATEMENT OF CASH FLOWS

For the Period ended 31 March

2024

2023

Rs. ' 000

Rs. ' 000

Audited

Audited

Cash flows from operating activities

Profit before taxation

1,196,172

820,760

Adjustments for :

Depreciation of property, plant and equipment

35,286

31,478

Amortisation of intangible assets

197

170

Depreciation of right of use asset

90,177

73,597

Interest expenses on lease liabilities and loans and borrowings

185,924

185,530

Provision for employee benefit liabilities

13,553

11,843

Net realised Gains

(581,700)

(39)

Net fair value (Gains)/ losses

427,083

(207,236)

Net unrealised losses on foreign currency transactions

185,575

381,968

Net amortisation of financial investments

(262,364)

(338,567)

Provision for impairment (Reversal) /losses on financial investments

(117,878)

156,114

1,172,025

1,115,618

Change in operating assets

Decrease / (Increase) in loans to life policyholders

2,431

(9,454)

Increase in reinsurance receivables

(125,533)

(144,311)

Decrease in premium receivables

258,918

203,075

Increase in receivables and other assets

(281,445)

(155,366)

(145,629)

(106,056)

Change in operating liabilities

Increase / (Decrease) in insurance contract liabilities

624,337

(43,938)

Increase in reinsurance payables

206,629

343,180

Increase / (Decrease) in other liabilities

217,162

(255,736)

1,048,128

43,506

Net cash generated from operations

2,074,524

1,053,068

Gratuity paid

(7,537)

(1,640)

Tax Paid

(216,000)

(188,614)

Net cash generated from operating activities

1,850,987

862,814

Cash flows from investing activities

Acquisition of investment securities

(14,784,111)

(13,640,614)

Proceeds from sale of investment securities

14,769,330

14,336,698

Acquisition of property, plant and equipment

(45,090)

(60,533)

Net Acquisition of ROU Asset

(26,386)

(36,951)

Net cash flows used in investing activities

(86,257)

598,600

Cash flows from financing activities

Dividend paid to equity holders

(1,406,250)

(1,312,500)

Payment of lease liabilities

(97,772)

(107,632)

Net cash used in financing activities

(1,504,022)

(1,420,132)

Net increase / (Decrease) in cash and cash equivalents

260,708

41,282

Net cash and cash equivalents as at 1 January

722,989

431,626

Net cash and cash equivalents as at 31 March

983,697

472,908

Analysis of cash and cash equivalents

Cash in hand and at bank

1,353,313

909,436

Bank overdrafts

(369,616)

(436,528)

Total cash and cash equivalents as at 31 March

983,697

472,908

Page 6 of 17

SOFTLOGIC LIFE INSURANCE PLC

STATEMENT OF FINANCIAL POSITION-LIFE INSURANCE FUND

As at

Note

31.03.2024

31.12.2023

Rs. ' 000

Rs. ' 000

Audited

Audited

Assets

Property, plant and equipment

307,814

311,000

Right of use assets

664,822

600,973

Financial investments

32,880,357

33,092,231

Loans to life policyholders

328,870

331,301

Reinsurance receivables

590,744

465,211

Premium receivables

2,190,171

2,449,089

Receivables and other assets

1,291,321

1,063,438

Cash and cash equivalents

1,352,045

1,087,058

Total assets

39,606,144

39,400,301

Equity and liabilities

Equity

Other reserves

(814,237)

(856,820)

Total equity

(814,237)

(856,820)

Liabilities

Insurance contract liabilities

11

28,549,811

27,925,474

Employee benefit liabilities

282,317

276,302

Reinsurance payables

909,082

718,855

Income tax liabilities

774,128

927,170

Other liabilities

9,535,427

10,032,630

Bank overdraft

369,616

376,690

Total liabilities

40,420,381

40,257,121

Total equity and liabilities

39,606,144

39,400,301

Page 7 of 17

SOFTLOGIC LIFE INSURANCE PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1 REPORTING ENTITY

Softlogic Life Insurance PLC ("the Company") is a public limited liability company incorporated and domiciled in Sri Lanka. The Company is regulated under the Insurance Industry Act No. 43 of 2000 and amendments thereto. The Company was re - registered under the Companies Act No. 07 of 2007 and the registered office is situated at Level 16, One Galle Face Tower, Colombo - 02. The ordinary shares of the Company have a primary listing on the CSE.

2 APPROVAL OF FINANCIAL STATEMENTS BY THE BOARD OF DIRECTORS

The interim condensed Financial Statements for the quater ended 31 March 2024 were authorised for issue by the Board of Directors on 07 May 2024.

3 BASIS OF PREPARATION

The interim condensed Financial Statements for the quater ended 31 March 2024 have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34 - Interim Financial Reporting. These interim condensed Financial Statements do not include all the information and disclosures required in the Annual Financial Statements, and should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2023. Further, the provisions of the Companies Act no.7 of 2007, the Regulation of the Insurance Industry Act No 43 of 2000 and Colombo Stock Exchange have been considered in preparing these interim condensed Financial Statements. The same Accounting Policies and methods of computation as stated in the Annual Financial Statements - 2023 have been followed in preparing these interim condensed Financial Statements.

In preparing these condensed interim financial statements, management has made judgements and estimates that affect the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual Financial statements.

New SLFRS and Interpretations issued but not yet effective have not been early adopted during the period.

  1. FAIR VALUE MEASUREMENT AND RELATED FAIR VALUE DISCLOSURES
    During the period, there were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3 categories as per the fair value hierarchy. The fair value changes on financial instruments in Level 3 category was properly recorded in the statement of other comprehensive income. As at the reporting date, fair value would not significantly change if one or more of the inputs of financial assets classified at level 3 were changed.
  2. GROSS WRITTEN PREMIUM

For the Period ended 31 March

2024

2023

Rs. ' 000

Rs. ' 000

Audited

Audited

First Year Premium

1,689,279

1,555,822

Renewal Premium

3,694,680

3,154,980

Group Life Premium

1,581,604

1,229,185

Single Premium

197,264

44,631

Total Gross Written Premium

7,162,827

5,984,618

Page 8 of 17

SOFTLOGIC LIFE INSURANCE PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

6

TOTAL NET REVENUE

For the Period ended 31 March

2024

2023

Rs. ' 000

Rs. ' 000

Audited

Audited

Net written premiums

6,527,187

5,345,006

Other Revenue

1,921,272

1,942,428

Total Net Revenue

8,448,459

7,287,434

7

FINANCE COST

For the Period ended 31 March

2024

2023

Rs. ' 000

Rs. ' 000

Audited

Audited

Interest expenses on lease liabilities and loans and borrowings

(185,924)

(185,530)

Net exchange (losses) / gains

(185,575)

(381,968)

Other finance cost

(29,851)

(34,638)

Total Finance (Cost) / Gains

(401,350)

(602,136)

8

PROFIT BEFORE TAXATION

For the Period ended 31 March

2024

2023

Rs. ' 000

Rs. ' 000

Audited

Audited

Profit Before Taxation

1,196,172

820,760

Total

1,196,172

820,760

The Company transferred Rs.932 Mn from Non participating fund to shareholder fund as surplus transfer for the quater ended 31 March 2024 (2023- 730 Mn).

9 INCOME TAX EXPENSE

The gains and profits from the Life Insurance Business are ascertained in terms of Section 67 of the Inland Revenue Act No. 24 of 2017. Accordingly, gains and profits on which tax is payable is the aggregate of;

Taxable Income Source

Applicable Tax Rate

Surplus distributed to shareholders from the Life Insurance policyholders fund as certified

30%

by the actuary

Investment income of the shareholder fund less any expenses incurred in the production of

30%

such income

Surplus distributed to a Life insurance policyholder who shares the profits of a person

30%

engaged in the business of life insurance

Dividend paid out of profit recorded in shareholder fund are subject to income tax at 15%.

Page 9 of 17

SOFTLOGIC LIFE INSURANCE PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

10

FINANCIAL INVESTMENTS

As at

Note

31.03.2024

31.12.2023

Rs. ' 000

Rs. ' 000

Audited

Audited

Amortised Cost (AC)

10.1

32,391,521

33,698,659

Fair Value through Other Comprehensive Income (FVOCI)

10.2

5,724,919

5,174,882

Fair Value Through Profit or Loss (FVTPL)

10.3

5,341,337

4,626,674

Total Financial Investments

43,457,777

43,500,215

10.1

Amortised Cost (AC)

Treasury Bonds

18,757,521

18,408,368

Treasury Bills

480,141

553,716

International Sovereign Bonds

3,784,493

3,928,615

Bank Deposits

910,471

919,403

Commercial Papers

1,406,940

1,713,352

Securitized Papers

514,081

577,371

Quoted Debentures

5,967,319

6,251,253

Unquoted Debentures

308,138

301,493

Reverse Repo

262,417

1,045,088

32,391,521

33,698,659

10.2

Fair Value through Other Comprehensive Income (FVOCI)

Equity Securities:

Quoted

2,700,694

1,759,999

Unquoted

-

326,914

Treasury Bonds

3,024,225

3,087,969

5,724,919

5,174,882

10.3

Fair Value Through Profit or Loss (FVTPL)

Treasury Bonds

334,268

318,208

Unlisted Perpetual Debenture

773,466

794,476

Unit Trust

4,233,603

3,513,990

5,341,337

4,626,674

11

INSURANCE CONTRACT LIABILITIES

As at

Note

31.03.2024

31.12.2023

Rs. ' 000

Rs. ' 000

Audited

Audited

Insurance Contract Liabilities

26,702,596

26,145,333

Surplus Created due to Change in Valuation method from NPV to GPV

11.1 & 11.2

1,056,535

1,056,535

Claim Payables

790,680

723,606

28,549,811

27,925,474

Page 10 of 17

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Softlogic Life Insurance plc published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2024 03:30:04 UTC.