Sri Lanka insurance profits sink 28% on claims surge in Q4 2025

Total claims incurred by life and general insurers rose 18.4% year on year in the fourth quarter.

Sri Lanka’s insurance industry profits in the fourth quarter of 2025 (Q4 2025) contracted by 27.6% year-on-year (YoY) to $123.8m (LKR41,254m), attributable to the surge in claims during the period.

Total claims incurred by both long-term life and general insurance rose 18.4% YoY to $520.4m (LKR173,475m) in the final quarter.

The industry’s assets grew by 17.1% YoY to reach $4.3b (LKR1,432,207m) in Q4 2025, according to the Insurance Regulatory Commission of Sri Lanka (IRCSL).

The asset growth comes despite severe profitability impacts during the final quarter of 2025 following the Ditwa cyclone.

As of 25 May 2026, the sector has registered 24,757 disaster-related claims valued at an estimated $168.0m (LKR56b). 

Insurers have already settled 79% of reported motor insurance claims and 44% of non-motor claims.

Long-term life insurance profitability fell marginally by 0.6% YoY to $97.0m (LKR32,315m), whilst general insurance PBT dropped 9.9% YoY to $62.1m (LKR20,715m).

Total Gross Written Premiums (GWP) across the industry rose 19% YoY to $1.2b (LKR384,963m) in 2025.

Long-term insurance GWP jumped 23.47% to $681.4m (LKR227,126m), whilst general insurance GWP grew by 13.1% YoY to $473.5m (LKR157,837m).

($1.00 = LKR334.35)