HNB LIFE PLC (HASU) - 1Q 2026 - BRS Equity Research
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Earnings Reviews
15/07/2026
243
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π HASU 1Q 2026 Earnings Review
Market Share Gains and Improving Claims Trend Support Earnings Recovery
1Q 2026 Highlights:
π Earnings declined 10.3% YoY to LKR 269.9mn as higher Life insurance claims, driven by policy maturities during the quarter, weighed on profitability.
π° Other income increased 3.3% YoY supported by a 13.0% rise in interest and dividend income from the expanded investment portfolio, although weaker contributions from other income streams limited overall growth.
π GWP surged 35.4% YoY driven by a strong 53.9% growth in the Life segment, reflecting robust premium momentum despite the temporary earnings pressure.
Outlook
β’ πΌ Strong premium growth, improving policy retention, lower lapse rates, and healthy Group Life business are expected to sustain growth.
β’ π General Insurance GWP is projected to grow 19.7% in 2026, supported by continued business expansion despite moderating motor insurance growth.
Valuation & Recommendation: BUY | TP: LKR 175.00 (+19.0%)
β οΈ Key Risks: Higher inflation, intense competition, regulatory changes, rapid technological shifts, and higher claims from natural disasters.
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