EXCELLENCE IN ACTION: A YEAR OF ACHIEVEMENTS

CLI delivered a year of excellent performance, driven by both revenue enhancements and diligent cost disciplines. Total income at the Company level reached Rs. 65.5 Bn for the twelve months ended 31 December 2024, marking a 7% increase over the prior year (YoY). Gross Written Premiums grew impressively to Rs. 37.1 Bn, an 11.16% rise despite prevailing economic conditions.

Investment income, a key component of net income, remained almost static during 2024, netting Rs. 27.8 Bn. The downward revision of market rates in response to the Central Bank of Sri Lanka’s policy rate reductions led to reduced income on our variable investment portfolio. However, the popularity of our short-term to mediumterm endowment products, which gained traction in the prior year, continued to drive premiums.

Costs remained under control, with operating and administrative expenses increasing by only 12.04% amidst high commodity and energy prices. CLI continued to reap benefits from its technological investments in process automation and the conscious shift to sustainability practices, which had a positive impact on total costs.

The dynamism and strength of CLI’s balance sheet continued, with total assets growing to Rs. 251.4 Bn, an 11.9% YoY increase. Insurance contract liabilities (Life Fund) grew to Rs. 180.9 Bn, reflecting an impressive 14.8% growth YoY. Total equity rose to Rs. 60.8 Bn, an 11.7% increase, predominantly benefiting from the rise in retained earnings.

Refer to the Financial Performance section on pages 127 to 151 for a full account of our financial performance.

DRIVING SUSTAINABLE IMPACT

We are unwavering in our commitment to advancing Environmental, Social, and Governance (ESG) principles, integrating sustainability into the core of our business strategy. Inspired by the United Nations Global Compact – Ten Principles, we embrace ethical business practices, respect for human rights, environmental stewardship, and strong governance. Furthermore, we actively contribute to the United Nations Sustainable Development Goals (SDGs), driving meaningful impact through responsible investments, social empowerment initiatives, and climate-conscious operations.

ENVIRONMENTAL RESPONSIBILITY IN ACTION

At CLI, managing our environmental footprint is a top priority, guided by four Focus Areas: Sustainable Business Expansion and Development, Resource Conservation and Waste Management, Ecosystem Conservation and Restoration, and Stakeholder Engagement and Awareness. We have made significant strides in these areas, reinforcing our commitment to a greener future.

In line with our Sustainable Business Expansion and Development initiatives, we integrated green building practices into our operational network. A total of 2 branches were designed and upgraded to eco friendly buildings, enhancing energy efficiency and reducing environmental impact. Strengthening our renewable energy investments, we installed our second-largest solar power system at the La Serena premises, generating 80 kW of clean energy. Additionally, a 10 kW solar system was commissioned at the Matugama branch, and the solar power system at the Nugegoda branch was successfully connected to the grid, transforming it into a fully sustainable green facility.

In terms of Resource Conservation and Waste Management, CLI remains dedicated to responsible resource management, leveraging technology to enhance efficiency and sustainability. Our digital transformation has significantly reduced paper usage, supporting our shift towards paperless operations while embedding environmental responsibility across stakeholder groups. We've adopted the 6R of resource management to optimize the use of vital resources such as energy, water, and paper. By year-end, 10 branches actively engaged in water recycling, while 19 branches implemented rainwater harvesting initiatives. These efforts conserved natural resources and resulted in cost savings of Rs. 639,900 through water-saving measures. Through these initiatives, we continue to drive sustainability while minimizing our environmental footprint.

For the 5th consecutive year, we quantified our Greenhouse Gas (GHG) emissions in accordance with ISO 14064-1 standards, ensuring accuracy and accountability in our sustainability efforts. Our GHG inventory for 2024, verified by Sri Lanka Climate Fund stood at 2,864 tCO2e, marking a 7.3% reduction compared to 2023. This achievement reflects our commitment to environmental responsibility while keeping us well within our targeted 5% annual reduction in emissions.

Under Ecosystem Conservation and Restoration, we remained steadfast in our commitment to preserving Sri Lanka’s natural heritage through two flagship initiatives. Our Reforestation of the Rajawaka Forest Reserve project, in partnership with the Rainforest Protectors of Sri Lanka, saw the planting of 10,000 trees with an investment of Rs. 5.7 Mn. These trees will be carefully nurtured over five years, ensuring long-term environmental impact. Simultaneously, our beach cleanup initiatives, conducted in collaboration with the Clean Ocean Force, focused on the responsible collection and disposal of harmful pollutants and waste along key coastal areas. Through these efforts, a total of 600 Kgs of waste was successfully removed from Sri Lanka’s coastal ecosystems, contributing to a cleaner and healthier marine environment.

Under Stakeholder Engagement and Awareness, we actively fostered environmental stewardship among our employees and the broader community. Our Green Club, with a dedicated membership of 22, played a pivotal role in driving sustainability-focused initiatives, with 281 employees directly participating in various environmental projects. Extending our commitment beyond the workplace, we engaged local communities through a Seed Donation Programme, distributing vegetable seeds at the 4 Waidya Hamuwa health camps conducted across the country. This initiative directly contributes to climate resilience and promotes healthier ecosystems in the face of habitat degradation while enhancing food security at the grassroots level.

DRIVING POSITIVE SOCIAL IMPACT

Our policyholders are the most effective conduit through which we channel societal empowerment. In 2024, we disbursed Rs. 25.2 billion in gross benefits and claims which represents 30% of the total benefits and claims paid by the entire life insurance industry, honouring our promise of protection and financial security when it mattered most. The total number of claims paid contributed to the No.1 UN SDG goal of poverty alleviation. Recognizing the need for greater accessibility and convenience, we expanded our service channels by introducing virtual advisory platforms, enabling seamless interactions and informed decision-making. These alternative touchpoints have enhanced customer engagement, driving greater traction in policy take-ups while ensuring that our policyholders receive expert guidance with ease.

We gave back to our policyholders through the Ceylinco Pranama scholarship scheme, disbursing Rs. 22.2 Mn to 152 young children who excelled in academics. This initiative, conducted for the 23rd consecutive year, brought the cumulative number of scholarship recipients to 3,498. Ceylinco Family Savari, our flagship initiative to reward policyholders, was held for the 18th consecutive year, offering 1,060 winners (265 families) the opportunity to enjoy exciting excursions both in Sri Lanka and abroad.

Building resilient communities remained a key priority under our commitment to driving positive social impact, with a strong focus on Educational Infrastructure Development and Supporting the Nation’s Healthcare Sector. Recognizing the urgent need for improved learning environments in underprivileged schools across remote areas, we invested in classroom projects to provide essential infrastructure and facilities. In 2024, we successfully completed classroom constructions in Galle and Batticaloa districts, benefiting 649 students. This initiative, supported by an investment of Rs. 3.34 Mn, was further strengthened by the dedicated volunteerism of twenty-two employees, ensuring the long-term sustainability of these educational spaces.

Recognizing the rising costs of healthcare and the economic challenges that continue to strain the national healthcare sector, particularly impacting rural communities in need of critical care, we remained steadfast in our commitment to supporting the nation’s healthcare sector. In response, we conducted health camps aimed at screening individuals for Non-Communicable Diseases (NCDs), providing medications to manage these conditions, and offering medical guidance on prevention through healthy lifestyle choices. Additionally, we built, donated, and maintained fully equipped High Dependency Units (HDUs) while deploying essential medical equipment and support across public sector hospitals, ensuring improved access to quality care for those most in need.

The impact of our efforts was evident, with 12 health camps conducted, benefiting 2,609 participants, and an investment of Rs. 3.3 million towards enhancing community healthcare and well-being. We also maintain the HDUs set up in previous years at key government hospitals across the country. As of today, five HDUs are operational in leading government hospitals with high patient footfall, significantly enhancing critical care capacity.

GOVERNANCE EXCELLENCE FOR LONG-TERM VALUE

We strengthened our ESG governance by establishing a dedicated Board SubCommittee to oversee and drive our sustainability initiatives. Operating under a clear Terms of Reference, the SubCommittee comprises members with deep expertise in sustainability-related matters. Supporting its mandate, the Green Club Management Committee plays a key role in advancing the Company’s ESG agenda. This structured governance framework has facilitated the streamlining of sustainability and climate-related data collection, risk and opportunity mapping, and enhanced sustainability reporting in alignment with SLFRS S1 and SLFRS S2, as well as other global best-practice frameworks.

In compliance with the new Personal Data Protection Act coming into effect in late 2025, we have appointed a Data Protection Officer (DPO) and engaged a renowned consulting firm to conduct a gap analysis to identify areas for improvement, ensuring a smooth transition to compliance ensuring Ceylinco Life is well poised to safeguard our customer data.

To further strengthen our compliance capabilities, we have recruited new personnel to our compliance department and streamlined their duties. Additionally, we have established a new “Customer Experience Department," which will be monitoring the entire customer life cycle. We hope these measures will bring valuable customer insights to the forefront, shaping our future strategies.

In line with regulatory requirements for the adoption of SLFRS 17, we have invested in new actuarial software, trained our actuarial and finance teams, and are ready to implement a parallel run in 2025.

NURTURING EMPOWERED, PROGRESSIVE PEOPLE

At CLI, our employees are the driving force behind our success, playing a pivotal role in creating and delivering value across our diverse stakeholder groups. Their unique skills, knowledge, and unwavering commitment enable us to achieve our long-term goals while embedding sustainability and social responsibility at the heart of our operations. As we move forward, we remain deeply invested in fostering a work environment that is inclusive, empowering, and rewarding for all.

Recognizing the importance of diversity and equity, we continued our efforts to empower women within our workforce, ensuring that opportunities for professional growth are accessible to all. During the year, 57% of new recruits were female, reinforcing our commitment to gender balance. Additionally, we take great pride in the career advancement opportunities provided to our employees, with 114 promotions awarded this year, of which 18% were within our female workforce.

Employee well-being remains a cornerstone of our people strategy, with a strong emphasis on holistic health. CLI promotes a balanced work-life culture while leveraging its group synergy with Kings Hospital to offer exceptional healthcare benefits to employees. Our commitment to fostering a supportive and engaging workplace also led to the introduction of a new platform, ‘Log Your Concern,’ which allows employees to voice their views, enabling proactive resolution of workplace matters and reinforcing a culture of transparency.

We continued to invest in the growth and development of our people, ensuring they are equipped with the skills necessary to thrive in a rapidly evolving business environment. Our training and development initiatives saw an investment of Rs. 92.5 Mn, resulting in an average of 19.87 learning hours per employee, an improvement of 1.15 hours from 2023. This sustained focus on professional development ensures that our employees are empowered with the knowledge and capabilities to drive innovation and enhance service excellence through evolving external dynamics.

PIONEERING PROGRESS THROUGH INNOVATION

Throughout the year, we intensified our focus on fostering a culture of innovation among our employees, embedding it as a core value within the organization. Our vision for innovation extends beyond identifying process improvements, it's about implementing and sustaining them to create a lasting impact. These innovations span diverse areas, from process enhancements to deploying cutting-edge technologies such as Robotic Process Automation (RPA), workflow solutions, and Artificial Intelligence (AI). Notably, two key AI-driven innovations that are being researched include an advanced fraud detection system and a knowledge management platform designed to streamline access to policies, procedures, guidelines, and directives, enhancing efficiency and governance across the organization.

We introduced a breakthrough product called "Ceylinco Life Medical Saver," which is a unique product available in the market where customers can manage their medical expenses even after the age of 70. Staying true to our mission, this product caters to the demographic changes in Sri Lanka, with the population over the retirement age significantly increasing.

Ever mindful of the growing Sri Lankan workforce, where the majority may not enjoy government pension schemes, we have developed an option for our customers to either take their maturity benefits as a lump sum or opt for a monthly payment option similar to an annuity. This ensures that our customers have a steady stream of income spread over a longer period, leading to a stable life.

Continuously striving for improvement in our processes, we have invested in a new document management system for storing customer documents and related correspondence more efficiently, making storage and retrieval more convenient.

A LEGACY OF SUCCESS: CELEBRATING OUR ACHIEVEMENTS

CLI received numerous prestigious accolades throughout the year. Notable highlights include being named the Best Life Insurer in Sri Lanka by the World Finance Awards UK, securing the top position in the Insurance category of LMD’s Most Respected Entities in Sri Lanka ranking for 2024, and leading the magazine’s Movers and Shakers list after an impressive rise of 35 places, from 52nd in 2023 to 17th in 2024. Our Annual Report 2023 also earned 12 awards, covering all key national and international recognition for excellence in corporate reporting.

We take immense pride in these achievements, which serve as both a testament to our commitment to excellence and an inspiration to raise the bar even higher. These wins are dedicated to our valued stakeholders, whose unwavering support continues to drive our success.

APPRECIATION

As we reflect on the past year, I extend my deepest gratitude to our valued policyholders for their trust and loyalty. Your confidence in us continues to drive our commitment to delivering protection, stability, and peace of mind. To our employees and sales force, your dedication and resilience are the backbone of our success. Your hard work and passion have enabled us to navigate challenges, seize opportunities, and uphold our promise of excellence.

To our Chairman, Mr R Rengnathan and Board of Directors, thank you for your unwavering guidance and strategic insight. Your leadership has been instrumental in steering the Company towards sustainable growth and innovation. I also extend my appreciation to our regulators, partners, and stakeholders for their continued support.

Your collaboration and confidence in us strengthen our ability to create long-term value and contribute to the industry’s progress.

As we move forward, we remain steadfast in our mission to protect and empower lives. With the strength of our people, the trust of our customers, and the vision of our leadership, I am confident that we will continue to build a future of resilience and growth, where we deliver on our promise for life, beyond insurance.

WAY FORWARD

At CLI, our sales force is our pride, passionately advocating the power of life insurance in empowering people to achieve more. They are well-trained professionals who uphold integrity and have been a cornerstone of our success. However, recruiting and retaining sales talent of this calibre remains a challenge. Recognizing this, we are committed to making significant investments in the near to medium term to diversify our distribution channels, enhance productivity, and drive our strategic goals.

With economic and political stability taking hold, we also anticipate greater policy consistency and regulatory clarity from the government and regulators. Such stability will not only benefit CLI but also support the broader insurance industry, business community, and individuals alike, fostering optimism for all. The future is filled with opportunities, and I am confident that together, we will continue to achieve remarkable success. Let us move forward with courage, innovation, and a shared commitment to securing the futures of generations to come..

Thushara Ranasinghe

Chief Executive Officer

20 February 2025

Colombo