Colombo, Sri Lanka – 13 August 2026 – People’s Insurance PLC (CSE: PEOP), a leading player in Sri Lanka’s general insurance sector, has announced exceptional financial results for the second quarter ended 30th June 2026, demonstrating a significant 61% growth in overall profitability compared to the corresponding period last year. The company’s interim condensed financial statements, filed with the Colombo Stock Exchange (CSE) today, highlight a period of consistent top-line expansion, prudent financial management, and a stable financial position as it navigates the transition to SLFRS 17.
Impressive Income and Profitability Trajectory
For the second quarter of 2026, People’s Insurance PLC reported a robust 39% year-on-year top-line growth. This commendable performance was underpinned by effective management strategies and disciplined underwriting practices.
- Gross Written Premium (GWP): For the six months ended 30 June 2026, GWP surged to Rs. 5,207.84 million, marking a substantial 39% increase from Rs. 3,752.80 million recorded in the first half of 2025.
- Profit Before Tax (PBT): PBT for Q2 2026 reached Rs. 525.58 million, a significant rise from Rs. 321.57 million in the same period of the previous year.
- Profit After Tax (PAT): The company’s PAT for the review period stood at Rs. 357.28 million, up from Rs. 221.58 million reported previously, reflecting a healthy 61% growth in overall profitability.
The Motor segment continued to be the primary revenue driver, contributing 78% to the total GWP and recording a strong 39% growth. The Fire segment also showed notable expansion, increasing by 23% and accounting for 13% of the total GWP for the first six months.
Strategic Cost Management and Enhanced Underwriting
While claims cost for Q2 2026 increased to Rs. 2,050.14 million (from Rs. 1,373.34 million in Q2 2025), and operating expenses rose by 12% to Rs. 1,109.46 million in line with business expansion, the company showcased improved operational efficiency. Notably, the underwriting loss significantly reduced by 60% to Rs. 92.44 million in 2026, compared to Rs. 231.90 million in 2025, a testament to its enhanced underwriting performance. Investment and other income, comprising interest and dividend income, also saw a 12% increase to Rs. 618.02 million, reflecting higher investment returns.
Solid Financial Position and Liquidity
People’s Insurance PLC maintains a strong financial footing. Total shareholders’ equity grew by 6% to Rs. 6,328.77 million in 2026, up from Rs. 5,970.13 million in 2025. Cash equivalents increased by Rs. 93.38 million, underscoring a robust liquidity position and optimized investments for long-term growth. The company’s Capital Adequacy Ratio remains well above the regulatory minimum, affirming its unwavering ability to meet policyholder obligations.
Navigating the Transition to SLFRS 17
A key aspect of the interim report details People’s Insurance PLC’s progress in adopting the new Sri Lanka Accounting Standard LKAS 34 – Interim Financial Reporting and the upcoming SLFRS 17 Insurance Contracts. In line with guidance from the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), the company has applied the Statement of Alternative Treatment (SoAT) for the first and second interim reporting quarters of 2026, allowing it to continue applying SLFRS 4 Insurance Contracts while making substantive progress on SLFRS 17 implementation.
The company has achieved significant milestones, including the completion of major actuarial model builds, refinement of discount rate methodologies, parallel processing of SLFRS 17 numbers, and strengthening of governance. People’s Insurance PLC expects to provide full quantitative disclosures on impacted line items and present provisional third-quarter financial information in accordance with SLFRS 17 in its Q3 interim statements.
The transition is expected to bring material changes to insurance contract liabilities, which will be measured based on the present value of fulfilment cash flows and explicit risk adjustments. Insurance revenue recognition will align with the provision of insurance coverage and services, and retained earnings are anticipated to be adjusted for the derecognition of SLFRS 4 liabilities and the recognition of SLFRS 17 assets and liabilities. The company has elected to apply the Premium Allocation Approach (PAA) for the measurement of eligible short-duration insurance contracts.
People’s Insurance PLC remains committed to driving continuous sustainable growth and fostering stakeholder expectations, aligning with its strategic business objectives.
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