LIFE INSURANCE SECTOR SHOWS STRONG GROWTH

• The sector is gaining momentum with GWP growth in 2024 and 1H25
• With one of Asia’s lowest penetration rates, the industry has significant room for growth

Sri Lanka’s life insurance sector is gaining strong momentum, with listed life insurers reporting notable gross written premium (GWP) growth in 2024 and the first half of 2025, according to Softlogic Stockbrokers.

Accordingly, Ceylinco Life, Softlogic Life, and Sri Lanka Insurance Life are leading the pack, holding market shares of approximately 21.1%, 17.7%, and 14.6%, respectively, as of the end of June.

Softlogic Stockbrokers said that the future outlook for the life insurance sector remains positive, allowing more room for growth as  Sri Lanka’s insurance penetration rate remains one of the lowest in Asia, where the life insurance penetration rate as of 2024 stands at 0.61% indicating significant room for growth as awareness and disposable incomes increase.

It said that a rising aging population (12.3% of Sri Lanka’s population is over the age of 65 in 2024) may further boost the demand for life insurance policies, creating further growth in the sector over the medium term.

While traditional whole life and endowment policies continue to dominate, pure protection-type policies are gradually gaining traction, reflecting rising consumer awareness and demand for risk coverage.

Moreover, it said that Ceylinco Life is leading the Life Insurance sector with a market share of 21.2% as of the end first half of 2025, which saw an improvement from 20.3% recorded as of the end of 2024.

Conversely, Softlogic Life has increased its market share from 17.2% in 2024 to 17.7% in 1H25.

Further, it said AIA insurance recorded the highest GWP year-on-year (y-o-y) growth of 35.8% marking Rs 13.8 million, followed by HNB Assurance with a GWP growth of 34.8% y-o-y in H1.

Source: Themorning