JKSB Quarterly Highlights_HNB Assurance PLC (HASU)_1QCY16
​HASU reported a 116% YoY increase in earnings for 1QCY16, driven mainly by a return to profitability for its GI (general insurance) business. As discussed in our last earnings review dated February 2016, several general insurers including HASU were impacted by a sharp increase in motor claims in CY15, mainly in the private car segment (due to higher spare parts prices stemming from LKR depreciation and an escalation in frequency of accidents amid an increase in first time drivers). A consequent re-pricing of HASU’s motor and corporate medical insurance business in October 2015, coupled with a reduction in exposure to selected vehicle classes in the private car segment, reduced its motor claims ratio to 68% for 1QCY16. As a result, the company’s overall GI claims ratio improved to 68% (-5ppt YoY) for the quarter which, coupled with a marginally lower expense ratio (-1ppt YoY to 37%), supported better underwriting profitability (combined ratio of 105% in 1QCY16 vs. combined ratios of 111% and 123% respectively for 1QCY15 and full year CY15).
•JKSB is one of 15 founding members of the Colombo Stock Exchange with roots in share trading dating back to 1896, and is a subsidiary of John Keells Holdings PLC (JKH), the largest listed entity on the Colombo Stock Exchange with a market capitalization of US$ 1.3bn.
•JKSB’s core client base is Foreign Institutional Investors, Local Institutions and HNWI’s
•JKSB has a co-branded Research tie up with CIMB and a Research Referral agreement with Credit Suisse, along with trade execution relationships with several other global and regional securities firms.
•JKSB’s trade execution partners include Credit Suisse, CIMB, Merrill Lynch, Exotix, Daiwa, Convergex, Deutsche Asia Securities and Morgan Stanley
•JKSB is a research contributor to Bloomberg on ‘KEEL’
•The JKSB Research Universe covers 72 stocks across 15 sectors, with most Research efforts focused on approximately 45 of the more liquid counters.
•The JKSB Universe constitutes 67% of total market cap and approximately 80% of turnover at the CSE.
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