Sri Lanka's insurance industry witnessed strong growth in the second quarter of 2025 with a 16% rise in premium.
The country’s life insurance sector saw a 22% rise in premium income, whereas the general insurance sector saw a 8.6% rise in premium income. Assets of the life insurance industry grew by 16%, primarily driven by a 50% increase in investments in equities, 33% increase in deposits, and 25% increase in corporate debt. Capital levels for the life sector also improved by 10% compared to the previous year. Assets of the general insurance industry grew by 10%, which was backed by a 94% growth in investments in unit trusts, 78% growth in investments in associates and 59% growth in equities. The sector’s capital base saw a healthy 12% increase. The reinsurance business recorded a 9% increase in assets but faced a 50% decline in its capital levels compared to Q2 2024.
The premium retention ratio for the life insurance sector stood at 95.94%, whereas it was 80.42% for the general insurance sector. On the claims front, the life insurance sector saw a 22% increase in claims paid out, but the general insurance sector managed to reduce its claims marginally by 1%.