HASU Community

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Re: HASU Community

Postby PAT » Mon Mar 19, 2018 10:37 pm

Sri Lanka's HNB Assurance 'A' rating confirmed; new tax rules to hit profitability

ECONOMYNEXT - Fitch Ratings said it affirmed Sri Lanka's HNB Assurance's 'A' credit rating although profitability is expected to fall as new income tax rules take effect from 01 April 2018.

"Changes in the Inland Revenue Act, which come into effect from 1 April 2018, are likely to lower HNBA's profitability, as its life operations will be liable to pay an effective 28% tax rate on its life business surplus," Fitch Ratings said.

This is a shift from the investment income minus management fees method, under which the company recorded losses and hence was not liable for tax, the ratings agency said.

"We believe HNBA along with other life insurers, will have limited ability to increase premiums to support after-tax profits in light of the country's highly competitive insurance industry.

"Despite the tax changes, Fitch views HNBA's financial performance and earnings as good," Fitch Ratings said.

The full statement follows:

Fitch Ratings Lanka has affirmed Sri Lanka-based HNB Assurance PLC's (HNBA) National Insurer Financial Strength (IFS) Rating and National Long-Term Rating of 'A(lka)'.

Fitch has also affirmed its 100% owned subsidiary HNB General Insurance Limited's (HNBGI) National IFS Rating and National Long-Term Rating at 'A(lka)'. The Outlook on the ratings is Stable.

KEY RATING DRIVERS

The ratings reflect the insurance group's strong capitalisation, strong domestic business profile, good financial performance and earnings as well as prudent investment policy.

We see HNBA, a life operator, and its non-life subsidiary, HNBGI, as having strong domestic business profiles, supported by association with the group's parent, Hatton National Bank PLC (HNB, AA-(lka)/Stable), with whom the insurance group shares the 'HNB' brand name.

The ratings also reflect synergies gained from using the wider branch network of HNB as well as the insurance group's importance to the bank in providing bancassurance products and HNB's 60% stake in the insurance group.

The agency expects the capitalisation of HNBA and HNBGI to remain satisfactorily above the regulatory minimum risk-based capital (RBC) ratio of 120%.

HNBA's RBC ratio was 358% at end-2017, while HNBGI's was 178%. Management expects to maintain HNBA's RBC ratio at over 300% and HNBGI's at over 170% in the medium term.

Changes in the Inland Revenue Act, which come into effect from 1 April 2018, are likely to lower HNBA's profitability, as its life operations will be liable to pay an effective 28% tax rate on its life business surplus.

This is a shift from the investment income minus management fees method, under which the company recorded losses and hence was not liable for tax.

We believe HNBA along with other life insurers, will have limited ability to increase premiums to support after-tax profits in light of the country's highly competitive insurance industry.

Despite the tax changes, Fitch views HNBA's financial performance and earnings as good.

The insurance group maintained its consolidated pre-tax return on assets at 5.7% in 2017 (2016:5.5%), buoyed by a 31% growth in the group's consolidated pre-tax income.

The non-life segment's combined ratio improved to 104% in 2017 (2016: 108%), helped by better pricing and underwriting practices.

HNBA maintained its market position in both its life and non-life businesses. Its gross written premiums (GWP) in the life segment increased by 11.5% in 2017 to account for 5.6% of the market (2016: 5.6%). Non-life GWPs rose by 24.4% to account for 4.4% of the market (2016:4.1%).

Fitch views HNBA's investment policy as being conservative, with a large allocation to highly rated fixed-income securities and low exposure to equity investments (1% at end-2017).

We expect the mix of fixed-income securities to be influenced by the new Inland Revenue Act.

Effective taxes on investment income will increase, as tax exemptions on debentures and notional tax credits on government securities will be removed for both life and non-life operations.

In response, the insurer has lowered its investment exposure to government securities to 41% (2016: 48%) and corporate bonds to 18% (2016: 25%) of invested assets, while increasing its allocation to term deposits to 33% (2016: 13%) due to higher net yields.

RATING SENSITIVITIES

Downward rating triggers include deterioration in the RBC ratio of HNBA and HNBGI to below 250% and 160%, respectively, for a sustained period or a weakening in the perceived strategic importance of HNBA or HNBGI to HNB.

Upgrade rating triggers include improvements in the market shares of HNBA and HNBGI, while maintaining sound capitalisation levels, with HNBA's RBC ratio staying above 300% and HNBGI's above 200%, on a sustained basis. (COLOMBO, March 19, 2018)
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Re: HASU Community

Postby Blue Whale » Tue Mar 20, 2018 7:08 am

Thanks PAT. Can we see the life insurance companies increasing their weight on listed security investments as the returns are still tax exempted.
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Re: HASU Community

Postby Shadow walker » Wed Apr 04, 2018 11:51 am

86 again
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Re: HASU Community

Postby stocks hunter » Wed Apr 04, 2018 7:08 pm

This time I feel like HASU will beat it's history high price in a short to medium term range

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Re: HASU Community

Postby SHARK » Thu Apr 05, 2018 12:10 am

yes hasu is giving another try to test the 100s
Price is what you pay. Value is what you get.”

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Re: HASU Community

Postby stocks hunter » Thu Apr 05, 2018 6:57 am

SHARK wrote:yes hasu is giving another try to test the 100s


Yes SHARK. HASU is going to be the new beauty in the mkt. Soon people will identify it's journey ahead..... :)

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Re: HASU Community

Postby Shadow walker » Thu Apr 05, 2018 11:05 am

Shadow walker wrote:
stocks hunter wrote:
Nemo wrote:82 now.

Some buying pressure seems to be building up. :)


Closing @Rs83.80.

HASU long way to go..... This is a MT/LT share. Please don't purchase this on credit basis.


Its only for LT investors.. 100 possible within next twelve months period.. :-bd



93 now.... 7 more for target.. :-bd
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Re: HASU Community

Postby Blue Whale » Thu Apr 05, 2018 12:33 pm

Blue Whale wrote:
Blue Whale wrote:I am producing a brief financial analysis for HASU based on Q1 17 result just released. I am expecting a PAT close to 1Bn this time. Also a DPS increasing to Rs7.75. ROE improving to 30% levels. At the current CMP trading at a PE of just 3.6x. This counter should appreciate heavily in coming weeks/months.

Also the stock has been in a bullish territory for many days now. Just remember that as well.
HASU Financial Analysis.jpg

Thanks
BW :D

Result is bit below the expectation but price movement is in line with the expectation. That is all we need right :ymhug:

Price appreciation is happening remarkably.
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Re: HASU Community

Postby PAT » Thu Apr 05, 2018 4:30 pm

PAT wrote:
Shadow walker wrote:
stocks hunter wrote:
Nemo wrote:82 now.

Some buying pressure seems to be building up. :)


Closing @Rs83.80.

HASU long way to go..... This is a MT/LT share. Please don't purchase this on credit basis.


Its only for LT investors.. 100 possible within next twelve months period.. :-bd


I think before Dec 18, 100 possible...... :D


... :D
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Re: HASU Community

Postby eagle_trader » Fri Apr 06, 2018 12:16 am

100 for sure

next will be ALLI and KGAL :-)
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Re: HASU Community

Postby stocks hunter » Sun Apr 08, 2018 8:20 pm

A Continuing Partnership; HNB Assurance Join Hands with the College of Community Physicians for the 3rd Consecutive Year

Continuing its strategic partnership for the 3rd consecutive year, HNB Assurance PLC (HNBA) entered into an MoU with the College of Community Physicians of Sri Lanka (CCPSL). The primary objective of this partnership is to educate the general public on a number of topics related to health and wellbeing.

Sharing his thoughts on this strategic partnership, Managing Director/CEO of HNBA and its fully owned subsidiary HNB General Insurance Limited (HNBGI), Mr. Deepthi Lokuarachchi stated, "with the changing attitude and behavior towards health and wellbeing, communities face various health-related challenges and threats in their day-to-day lives and as a brand committed towards the wellbeing of the community, HNBA has taken various measures to address these health related concerns and to propagate the concept of healthy living and this strategic partnership is one such measure to promote the concept of healthy living. Through this partnership we hope to educate communities on a number of topics related to health and wellbeing".

Sharing her thoughts on the MoU, Secretary of the College of Community Physicians of Sri Lanka, Dr. Inoka Suraweera stated "We are extremely pleased to join hands with HNBA, a brand which has travelled an extra mile to propagate the concept of healthy living. Our environment has a significant impact on our health in various aspects and the changes to our environment including pollution, climate change and exposure to toxic chemicals cause serious threats to human life. And this year CCPSL has outlined a series of programs island wide following the theme, "Healthy Environment, A Healthy Investment for a Healthier Nation" to create awareness on environmental health and its impact on human life".


HNB Assurance PLC (HNBA) is one of the fastest growing Insurance Companies in-Sri Lanka with a network of 59 branches. HNBA is a Life Insurance company with a rating of A (Ika) by Fitch Ratings Lanka for "National Insurer Financial Strength Rating" and "National Long- term Rating". Following the introduction of the segregation rules by the Insurance Regulator, HNB General Insurance Limited (HNBGI) was created and commenced its operations in January 2015; HNBGI continues to specialize in motor, non-motor and Takaful insurance solutions and is a fully owned subsidiary of HNB Assurance PLC. HNBA is rated within the Top 100 Brands and Top 100 companies in Sri Lanka by LIVID and HNB Assurance has won International awards for Brand Excellence, Digital Marketing and HR Excellence and also won many awards for its Annual Reports at the Award ceremonies organized by the Institute of Chartered Accountants of Sri Lanka and SAFA (South Asian Federation of Accountants).

http://www.island.lk/index.php?page_cat ... tle=182823

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Re: HASU Community

Postby Nemo » Thu Apr 12, 2018 10:14 am

94.40 now. Some buying pressure building up! :D

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Re: HASU Community

Postby Blue Whale » Mon Apr 16, 2018 10:35 am

Trading at a new 52W high of 95/-. :)
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Re: HASU Community

Postby PAT » Mon Apr 16, 2018 11:27 am

Blue Whale wrote:Trading at a new 52W high of 95/-. :)


:ymblushing:
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Re: HASU Community

Postby Shadow walker » Mon Apr 16, 2018 1:20 pm

Shadow walker wrote:
Shadow walker wrote:
stocks hunter wrote:
Nemo wrote:82 now.

Some buying pressure seems to be building up. :)


Closing @Rs83.80.

HASU long way to go..... This is a MT/LT share. Please don't purchase this on credit basis.


Its only for LT investors.. 100 possible within next twelve months period.. :-bd



93 now.... 7 more for target.. :-bd



4 more :-bd
Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time .. ;)


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Re: HASU Community

Postby nuwandwo » Mon Apr 16, 2018 3:23 pm


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Re: HASU Community

Postby Shadow walker » Mon Apr 16, 2018 3:50 pm

nuwandwo wrote:




Insurance takeovers: The next big thing
By Duruthu Edirimuni Chandrasekera
View(s): 547

At least two insurance firms are for sale, while many foreign and local buyers are setting the stage for consolidation in this sector, insurance industry officials say.

HNB Assurance PLC has approached many local parties to buy them over while Janashakthi Insurance PLC’s (JINS) life arm is being courted by multinational insurer, Germany’s Allianz who in February bought its general insurance business, they say.

Insurance sector has seen many deals in the past four years and this year will see much consolidation, analysts predict. The insurance sector has got global insurance players eyeing local insurers, analysts say.

JINS’s general arm went in a Rs. 16.4 billion deal to Allianz. Earlier this month Japan’s Mitsui Sumitomo Insurance Company Ltd increased its stake in Ceylinco Insurance PLC to 10.5 per cent.

Mitsui Sumitomo held 6 per cent stake as of end December 2017. Sumitomo is now the third largest shareholder in Ceylinco Insurance after Global Rubber Industries (22.25 per cent) and Banque Pictet and Cie SA (12.73 per cent). Ceylinco Insurance PLC saw a total of 289,717 shares traded on Monday and this was a purchase by Tundra Frontier Opportunities Fund.

Insurance was a sector that has always been trading at book value (the amount that the share holder will get for each share after selling out all assets and paying liabilities), but the value of recent transactions such as the JINS one for Rs. 16.4 billion saw that these stocks should be trading at a higher multiple, according to analysts.



http://www.sundaytimes.lk/180415/business-times/insurance-takeovers-the-next-big-thing-289775.html
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Re: HASU Community

Postby Blue Whale » Tue Apr 17, 2018 6:32 pm

Seems that the company announcement has halted the price movement. And this further confirms that the recent high demand on HASU has fair degree of weight on this sell-off speculation.
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Re: HASU Community

Postby Shadow walker » Tue Apr 17, 2018 7:36 pm

Blue Whale wrote:Seems that the company announcement has halted the price movement. And this further confirms that the recent high demand on HASU has fair degree of weight on this sell-off speculation.



Its moving because investors expecting a another dividend and a massive one off surplus in 2018 books similar to UAL, CTCE 2017 FS.. :-bd
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Re: HASU Community

Postby Blue Whale » Tue Apr 17, 2018 8:04 pm

Shadow walker wrote:
Blue Whale wrote:Seems that the company announcement has halted the price movement. And this further confirms that the recent high demand on HASU has fair degree of weight on this sell-off speculation.



Its moving because investors expecting a another dividend and a massive one off surplus in 2018 books similar to UAL, CTCE 2017 FS.. :-bd


It was moving and now drowning :))
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Re: HASU Community

Postby stocks hunter » Wed Apr 18, 2018 8:47 pm

We should not under estimate HASU......

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Re: HASU Community

Postby PAT » Thu Apr 19, 2018 6:51 am

stocks hunter wrote:We should not under estimate HASU......

Indeed
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Re: HASU Community

Postby Blue Whale » Thu Apr 19, 2018 7:40 am

Yes ample chances were there to collect as much as possible in 70s. Now trading time :D
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Re: HASU Community

Postby Blue Whale » Wed Apr 25, 2018 6:55 pm

Blue Whale wrote:
Shadow walker wrote:
Blue Whale wrote:Seems that the company announcement has halted the price movement. And this further confirms that the recent high demand on HASU has fair degree of weight on this sell-off speculation.



Its moving because investors expecting a another dividend and a massive one off surplus in 2018 books similar to UAL, CTCE 2017 FS.. :-bd


It was moving and now drowning :))

Continue to loose the steam after company clarification. So now we have a fair degree of confidence that the post ex-div run has good amount of speculation.
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Re: HASU Community

Postby PAT » Wed Apr 25, 2018 7:30 pm

Yes

But still HASU worth to keep in your PF
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