Softlogic Life Insurance PlcCSELK: AAIC.N0000

Interim Financial Statements for the period ended 30 June 2025

· Issued by Softlogic Life Insurance Plc


INTERIM FINANCIAL STATEMENTS - FOR THE PERIOD ENDED 30THJUNE 2025 SOFTLOGIC LIFE INSURANCE PLC INCOME STATEMENT

For the Period ended 30 June

Note

2025

Rs. ' 000

Audited

2024

Rs. ' 000

Audited

Change

%

Gross written premiums

5

18,729,968

14,536,497

29

Premiums ceded to reinsurers

(1,407,192)

(1,286,894)

9

Net written premiums

17,322,776

13,249,603

31

Other revenue

Net finance income

2,628,924

3,428,216

(23)

Net realised gains

871,656

1,858,044

(53)

Net fair value gains / (losses)

140,913

(425,942)

133

Other operating income

3,000

3,167

(5)

Total other revenue

3,644,493

4,863,485

(25)

Total net revenue

6

20,967,269

18,113,088

16

Net benefits, claims and expenses

Net insurance benefits and claims paid

(9,101,698)

(6,765,440)

35

Net change in insurance claims outstanding

(17,778)

(84,499)

(79)

Change in insurance contracts liabilities

(3,311,199)

(1,933,111)

71

Underwriting and net acquisition cost (Net of reinsurance)

(3,425,723)

(2,918,564)

17

Other operating and administration expenses

(3,085,126)

(2,869,271)

8

Impairment reversal / (provision) on financial investments

622

(62,415)

(101)

Finance cost

7

(286,652)

(559,946)

(49)

Total benefits, claims and expenses

(19,227,554)

(15,193,246)

27

Profit before tax

8

1,739,715

2,919,842

(40)

Income tax expenses

(518,569)

(863,634)

(40)

Profit for the period

1,221,146

2,056,208

(41)

Profit attributable to;

Owners of the Company

1,221,146

2,056,208

(41)

Non controlling interest

-

-

-

1,221,146

2,056,208

(41)

Earnings per share

Basic earnings per share (Rs.)

17

3.86

5.48

(30)

Diluted earnings per share (Rs.)

17

3.86

5.48

(30)

The Notes form an integral part of these Interim Financial Statements.

SOFTLOGIC LIFE INSURANCE PLC STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the Period ended 30 June

2025

Rs. ' 000

Audited

2024

Rs. ' 000

Audited

Change

%

Profit for the period

1,221,146

2,056,208

(41)

Other comprehensive income

Items that will not be reclassified to income statement

Equity investments at FVOCI - reclassified to retained earnings

Equity investments at FVOCI - net change in fair value

Equity investments at FVOCI - net change in fair value - Life fund Related tax / deferred tax

15,426

227,481

199,839

-

-246,012

176,714

-

442,746

422,726

5

Items that are or may be reclassified subsequently to income statement

Debt investments at FVOCI - net change in fair value

Debt investments at FVOCI - net change in fair value - Life fund Related tax / deferred tax

(158,003)

91,101

-

220

11,498

-

(66,902)

11,718

(671)

Total other comprehensive income for the period, net of tax

375,844

434,444

(13)

Total comprehensive income for the period, net of tax

1,596,990

2,490,652

(36)

Total comprehensive income attributable to:

Owners of the Company Non - controlling interests

1,596,990

-

2,490,652

-

1,596,990

2,490,652

(36)

The Notes form an integral part of these Financial Statements.

SOFTLOGIC LIFE INSURANCE PLC INCOME STATEMENT

For the three months period ended 30 June

2025

Rs. ' 000

Audited

2024

Rs. ' 000

Audited

Change

%

Gross written premiums Premiums ceded to reinsurers

9,747,606

(730,597)

7,373,670

(651,254)

32

12

Net earned premiums

9,017,009

6,722,416

34

Other revenue Net finance income Net realised gains Net fair value gains

Other operating income

1,273,768

856,153

55,491

1,617

1,663,506

1,276,344

1,141

1,222

(23)

(33)

4,763

32

Total other revenue

2,187,029

2,942,213

(26)

Total net revenue

11,204,038

9,664,629

16

Net benefits, claims and expenses

Net insurance benefits and claims paid

(4,812,407)

(3,397,714)

42

Net change in insurance claims outstanding

(33,440)

(27,083)

23

Change in insurance contracts liabilities

(1,930,335)

(1,375,849)

40

Underwriting and net acquisition cost (Net of reinsurance)

(1,691,825)

(1,427,852)

18

Other operating and administration expenses

(1,511,116)

(1,373,572)

10

Impairment (reversal) / provision on financial investments

3,595

(180,293)

(102)

Finance cost

(156,935)

(158,596)

(1)

Total benefits, claims and expenses

(10,132,463)

(7,940,959)

28

Profit before tax

1,071,575

1,723,670

(38)

Income tax expenses

(328,048)

(521,075)

(37)

Profit for the period

743,527

1,202,595

(38)

Profit attributable to;

Owners of the Company Non controlling interest

743,527

-

1,202,595

-

(38)

743,527

1,202,595

(38)

Earnings per share

Basic earnings per share (Rs.)

2.35

3.21

(27)

Diluted earnings per share (Rs.)

2.35

3.21

(27)

The Notes form an integral part of these Financial Statements.

SOFTLOGIC LIFE INSURANCE PLC STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the three months period ended 30 June

2025

Rs. ' 000

Audited

2024

Rs. ' 000

Audited

Change

%

Profit for the Period

743,527

1,202,595

(38)

Other comprehensive income

Items that will not be reclassified to income statement

Equity investments at FVOCI - reclassified to retained earnings

15,426

-

Equity investments at FVOCI - net change in fair value

312,639

301,439

Equity investments at FVOCI - net change in fair value - life fund

247,771

138,841

Related tax / deferred tax

-

-

575,836

440,280

31

Items that are or may be reclassified subsequently to income statement

Debt investments at FVOCI - net change in fair value

268,972

1,406

Debt investments at FVOCI - net change in fair value - life fund

86,013

6,787

Related tax / deferred tax

-

-

354,985

8,193

4,233

Total other comprehensive income for the period, net of tax

930,821

448,473

108

Total comprehensive income for the period, net of tax

1,674,348

1,651,068

1

Total comprehensive income attributable to:

Owners of the Company

1,674,348

1,651,068

Non - controlling interests

-

-

1,674,348

1,651,068

1

The Notes form an integral part of these Financial Statements.

SOFTLOGIC LIFE INSURANCE PLC STATEMENT OF FINANCIAL POSITION

As at

Note

30.06.2025

Rs. ' 000

Audited

31.12.2024

Rs. ' 000

Audited

Assets

Intangible assets

7,080

3,955

Property, plant and equipment

672,759

689,233

Right of use assets

1,164,385

1,193,764

Deferred tax assets

462,612

468,263

Financial investments

10

48,701,934

43,938,018

Loans to life policyholders

395,725

350,134

Reinsurance receivables

636,312

518,316

Premium receivables

1,971,948

2,904,513

Receivables and other assets

1,666,302

1,658,300

Cash and cash equivalents

2,415,898

1,869,652

Total assets

58,094,955

53,594,148

Equity and liabilities

Equity

Stated capital

16

1,062,500

1,062,500

Restricted regulatory reserve

798,004

798,004

Other reserves

(388,418)

(764,262)

Retained earnings

10,464,032

9,258,312

Total equity

11,936,118

10,354,554

Liabilities

Insurance contract liabilities

11

36,558,040

33,290,278

Employee benefit liabilities

399,099

372,315

Loans and borrowings

3,087,052

3,016,443

Reinsurance payables

979,874

754,059

Other liabilities

4,744,859

5,438,184

Bank overdraft

389,913

368,315

Total liabilities

46,158,837

43,239,594

Total equity and liabilities

58,094,955

53,594,148

Net asset per share (Rs.)

15

37.72

32.73

The Notes form an integral part of these Financial Statements

These Financial Statements are in compliance with the requirements of the Companies Act No 07 of 2007.

Sgd.

Nuwan Withanage

Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Approved and signed for and on behalf of the Board.

Sgd. Sgd. Ashok Pathirage Iftikar Ahamed

Chairman Managing Director

Colombo

07 August 2025

SOFTLOGIC LIFE INSURANCE PLC STATEMENT OF CHANGES IN EQUITY

Stated capital Restricted Other reserves Retained Total

For the Period ended 30 June regulatory earnings

reserve Fair value Revaluation

reserve

reserve

Rs. ' 000

Rs. ' 000

Rs. ' 000

Rs. ' 000

Rs. ' 000

Rs. ' 000

Balance as at 01 January 2024

1,062,500

798,004

(2,318,408)

173,516

13,617,734

13,333,346

Profit for the period

-

-

-

-

2,056,208

2,056,208

Other comprehensive income for the period

Equity investments at FVOCI - net change in fair value

-

-

246,012

-

-

246,012

Equity investments at FVOCI - net change in fair value - Life fund

-

-

176,714

-

-

176,714

Debt investments at FVOCI - net change in fair value

-

-

220

-

-

220

Debt investments at FVOCI - net change in fair value - Life fund

-

-

11,498

-

-

11,498

Debt investments at FVOCI - reclassified to income statement

-

-

-

-

-

-

Total other comprehensive income, net of tax

-

-

434,444

-

-

434,444

Total comprehensive income for the period

-

-

434,444

-

2,056,208

2,490,652

Transaction with owners of the Company Contribution and distribution

Interim dividend - 2023

-

-

-

-

(1,406,250)

(1,406,250)

Total transactions with owners of the Company

-

-

-

-

(1,406,250)

(1,406,250)

Balance as at 30 June 2024

1,062,500

798,004

(1,883,964)

173,516

14,267,692

14,417,748

Profit for the period

-

-

-

-

2,465,589

2,465,589

Other comprehensive income for the period

Equity investments at FVOCI - net change in fair value

-

-

679,316

-

-

679,316

Equity investments at FVOCI - net change in fair value - Life fund

-

-

394,604

-

-

394,604

Debt investments at FVOCI - net change in fair value

-

-

(405,132)

-

-

(405,132)

Re-measurement Gain on defined benefit liabilities

-

-

-

-

(51,141)

(51,141)

Debt investments at FVOCI - net change in fair value - Life fund

-

-

277,166

-

-

277,166

Debt investments at FVOCI - reclassified to income statement

-

-

232

-

-

232

Total other comprehensive income, net of tax

-

-

946,186

-

(51,141)

895,045

Total comprehensive income for the period

-

-

946,186

-

2,414,448

3,360,634

Transaction with owners of the Company Contribution and distribution

Interim dividend - 2024

-

-

-

-

(1,423,828)

(1,423,828)

Repurchase of Shares

-

-

-

-

(6,000,000)

(6,000,000)

Balance as at 31 December 2024

1,062,500

798,004

(937,778)

173,516

9,258,312

10,354,554

Profit for the period

-

-

-

-

1,221,146

1,221,146

Other comprehensive income for the period

Equity investments at FVOCI - net change in fair value

-

-

227,481

-

-

227,481

Equity investments at FVOCI - net change in fair value - Life fund

-

-

199,839

-

-

199,839

Equity investments at FVOCI - reclassified to retained earnings

15,426

-

(15,426)

-

Debt investments at FVOCI - net change in fair value

-

-

(158,003)

-

-

(158,003)

Debt investments at FVOCI - net change in fair value - Life fund

-

-

91,101

-

-

91,101

Total other comprehensive income, net of tax

-

-

375,844

-

(15,426)

360,418

Total comprehensive income for the period

-

-

375,844

-

1,205,720

1,581,564

Balance as at 30 June 2025

1,062,500

798,004

(561,934)

173,516

10,464,032

11,936,118

SOFTLOGIC LIFE INSURANCE PLC STATEMENT OF CASH FLOWS

For the Period ended 30 June

2025

Rs. ' 000

Audited

2024

Rs. ' 000

Audited

Cash flows from operating activities

Profit before taxation

1,739,715

2,919,842

Adjustments for :

Depreciation of property, plant and equipment

88,899

70,407

Amortisation of intangible assets

800

394

Depreciation of right of use asset

173,572

179,979

Interest expenses on lease liabilities and loans and borrowings

249,541

360,059

Provision for employee benefit liabilities

28,690

25,933

Net realised gains

(871,656)

(1,858,044)

Net fair value (gains)/ losses

(140,913)

425,943

Net unrealised losses on foreign currency transactions

(31,998)

137,984

Net amortisation of financial investments

(441,101)

(991,806)

Provision for impairment (reversal) /losses on financial investments

(622)

62,415

794,927

1,333,106

Change in operating assets

Decrease / (increase) in loans to life policyholders

(45,591)

(5,462)

Increase in reinsurance receivables

(117,996)

(158,107)

Decrease in premium receivables

932,565

415,780

Increase in receivables and other assets

4,034

(258,944)

773,012

(6,733)

Change in operating liabilities

Increase / (decrease) in insurance contract liabilities

3,267,762

2,134,720

Increase in reinsurance payables

223,715

303,466

Increase / (decrease) in other liabilities

(568,279)

31,706

2,923,198

2,469,892

Net cash generated from operations

4,491,137

3,796,264

Tax Paid

(642,000)

(432,000)

Interest Paid

(178,924)

(300,729)

Gratuity paid

(1,906)

(14,972)

Net cash generated from operating activities

3,668,307

3,048,564

Cash flows from investing activities

Acquisition of investment securities

(22,993,050)

(30,359,017)

Proceeds from sale of investment securities

20,140,433

29,257,430

Acquisition of property, plant and equipment

(72,425)

(67,081)

Net acquisition of ROU asset

(17,745)

(33,706)

Acquisition of intangible assets

(3,925)

-

Net cash flows used in investing activities

(2,946,712)

(1,202,374)

Cash flows from financing activities

Dividend paid to equity holders

-

(1,406,250)

Principal Payment of lease liabilities

(196,947)

(195,114)

Net cash used in financing activities

(196,947)

(1,601,364)

Net increase / (Decrease) in cash and cash equivalents

524,648

244,826

Net cash and cash equivalents as at 1 January

1,501,337

722,989

Net cash and cash equivalents as at 30 June

2,025,985

967,815

Analysis of cash and cash equivalents

Cash in hand and at bank

2,415,898

1,379,651

Bank overdraft

(389,913)

(411,836)

Total cash and cash equivalents as at 30 June

2,025,985

967,815

SOFTLOGIC LIFE INSURANCE PLC STATEMENT OF FINANCIAL POSITION-LIFE INSURANCE FUND

As at

Note

30.06.2025

Rs. ' 000

Audited

31.12.2024

Rs. ' 000

Audited

Assets

Property, plant and equipment Right of use assets

Financial investments Loans to life policyholders Reinsurance receivables Premium receivables Receivables and other assets

Cash and cash equivalents

291,816

1,164,385

35,280,891

395,725

636,312

1,971,948

1,462,476

2,401,831

298,187

1,189,826

31,721,103

350,134

518,316

2,904,513

1,078,748

1,865,751

Total assets

43,605,384

39,926,578

Equity and liabilities Equity

Other reserves

243,176

(47,764)

Total equity

243,176

(47,764)

Liabilities

Insurance contract liabilities Employee benefit liabilities Reinsurance payables

Other liabilities

Bank overdraft

11

36,558,040

399,099

979,874

5,035,282

389,913

33,290,278

372,315

754,059

5,189,375

368,315

Total liabilities

43,362,208

39,974,342

Total equity and liabilities

43,605,384

39,926,578

SOFTLOGIC LIFE INSURANCE PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. REPORTING ENTITY

    Softlogic Life Insurance PLC ("the Company") is a public limited liability company incorporated and domiciled in Sri Lanka. The Company is regulated under the Insurance Industry Act No. 43 of 2000 and amendments thereto, and is a licensed life insurer under the regulation of the Insurance Regulatory Commission of Sri Lanka (IRCSL). The Company was re-registered under the Companies Act No. 07 of 2007 and the registered office is situated at Level 16, One Galle Face Tower, Colombo - 02. The ordinary shares of the Company have a primary listing on the CSE.

  2. APPROVAL OF FINANCIAL STATEMENTS BY THE BOARD OF DIRECTORS

    The interim condensed Financial Statements for the period ended 30 June 2025 were authorised for issue by the Board of Directors on 07 August 2025.

  3. BASIS OF PREPARATION

    The interim condensed Financial Statements for the period ended 30 June 2025 have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34 - Interim Financial Reporting. These interim condensed Financial Statements do not include all the information and disclosures required in the Annual Financial Statements, and should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2024. Further, the provisions of the Companies Act no.7 of 2007, the Regulation of the Insurance Industry Act No 43 of 2000 and Colombo Stock Exchange have been considered in preparing these interim condensed Financial Statements. The same accounting policies and methods of computation as stated in the Annual Financial Statements - 2024 have been followed in preparing these interim condensed Financial Statements.

    In preparing these condensed interim financial statements, management has made judgements and estimates that affect the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

    The significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual Financial statements.

    New SLFRS and Interpretations issued but not yet effective have not been early adopted during the period.

  4. FAIR VALUE MEASUREMENT AND RELATED FAIR VALUE DISCLOSURES

    During the period, there were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3 categories as per the fair value hierarchy. The fair value changes on financial instruments in Level 3 category was properly recorded in the statement of other comprehensive income. As at the reporting date, fair value would not significantly change if one or more of the inputs of financial assets classified at level 3 were changed.

  5. GROSS WRITTEN PREMIUM

    For the Period ended 30 June

    2025

    Rs. ' 000

    Audited

    2024

    Rs. ' 000

    Audited

    First year premium

    3,753,984

    3,235,895

    Renewal premium

    9,416,525

    7,561,636

    Group life Premium

    4,112,570

    3,274,911

    Single premium

    1,446,889

    464,055

    Total Gross Written Premium

    18,729,968

    14,536,497

    SOFTLOGIC LIFE INSURANCE PLC

    NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. TOTAL NET REVENUE

    For the Period ended 30 June

    2025

    Rs. ' 000

    Audited

    2024

    Rs. ' 000

    Audited

    Net written premiums

    17,322,776

    13,249,603

    Other Revenue

    3,644,493

    4,863,485

    Total Net Revenue

    20,967,269

    18,113,088

  2. FINANCE COST

    For the Period ended 30 June

    2025

    Rs. ' 000

    Audited

    2024

    Rs. ' 000

    Audited

    Interest expenses on lease liabilities, loans and borrowings

    249,541

    360,059

    Net exchange losses / (gains)

    (31,998)

    137,984

    Other finance cost

    69,109

    61,903

    Total Finance Cost / (Gains)

    286,652

    559,946

  3. PROFIT BEFORE TAXATION

    For the Period ended 30 June

    2025 2024

    Rs. ' 000 Rs. ' 000

    Audited Audited

    Profit before taxation

    1,739,715

    2,919,842

    Total

    1,739,715

    2,919,842

    Refer Note 11.3 for the details on the surplus transfer from the Non participating fund to shareholder fund during the quarter.

  4. INCOME TAX EXPENSE

    The gains and profits from the Life Insurance Business are ascertained in terms of Section 67 of the Inland Revenue Act No. 24 of 2017. Accordingly, gains and profits on which tax is payable is the aggregate of:

    Taxable Income Source

    Applicable Tax Rate

    Surplus distributed to shareholders from the Life Insurance policyholders fund as certified

    by the actuary

    30%

    Investment income of the shareholder fund less any expenses incurred in the production of

    such income

    30%

    Surplus distributed to a life insurance policyholder who shares the profits of a person

    engaged in the business of life insurance

    30%

    Dividend paid out of profit recorded in shareholder fund are subject to income tax at 15%.

    SOFTLOGIC LIFE INSURANCE PLC

    NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. FINANCIAL INVESTMENTS

    As at Note

    30.06.2025

    Rs. ' 000

    Audited

    31.12.2024

    Rs. ' 000

    Audited

    Treasury bonds

    20,794,623

    20,673,471

    Treasury bills

    2,617,726

    704,527

    Fixed deposits

    1,340,143

    733,467

    Commercial papers

    2,256,604

    2,206,628

    Quoted debentures

    5,379,688

    5,687,364

    Unquoted debentures

    314,933

    301,541

    Repo

    4,005,104

    1,140,922

    Equity Securities

    4,607,606

    4,214,895

    International sovereign bonds

    3,217,869

    3,378,691

    Unlisted perpetual debenture

    735,761

    722,416

    Commercial papers

    185,346

    175,755

    Unit trust

    3,246,531

    3,998,341

    48,701,934

    43,938,018

  2. INSURANCE CONTRACT LIABILITIES

    As at

    Note

    30.06.2025

    Rs. ' 000

    Audited

    31.12.2024

    Rs. ' 000

    Audited

    Insurance contract liabilities

    34,544,864

    31,233,665

    Surplus created due to change in valuation method from NPV to GPV

    11.1 & 11.2

    1,056,535

    1,056,535

    Claim payables

    956,641

    1,000,078

    36,558,040

    33,290,278

    SOFTLOGIC LIFE INSURANCE PLC

    NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. Transfer of One-off Surplus from Policyholder Fund to Shareholder Fund

    The Insurance Regulatory Commission of Sri Lanka (IRCSL) has issued a Direction No 16 on 20thMarch 2018 on "Guidelines/ Directions for Identification and Treatment of One-off Surplus" and has instructed all Life Insurance Companies to comply with the new Direction. Based on the new guidelines, Life Insurance Companies are directed to transfer One-off surplus attributable to Policyholder Non-Participating Fund to shareholder fund as at the

    reporting year ended 31stDecember 2017. The transfer has been presented as a separate line item in the Income Statement as "Change in contract liability due to transfer of One-off surplus" and as a separate reserve in the Statement of Financial Position as "Restricted Regulatory Reserve" under Equity in accordance with above

    Direction. As required by the said Direction, the Company received the approval for this transfer on 29thMarch 2018.

    Further distribution of One-off Surplus to shareholders, held as part of the Restricted Regulatory Reserve, is subject to meeting governance requirements stipulated by the IRCSL and can only be released as dividends upon receiving approval from the IRCSL. The One-off Surplus in the shareholder fund will remain invested in government debt securities and deposits as disclosed in Note 11.2 as per the Directions of the IRCSL".

    One-off surplus in respect of participating business is held within the participating fund as part of the unallocated valuation surplus and may only be transferred to the shareholder fund by means of bonuses to policyholders in line with Section 38 of the "Regulation of Insurance Industry Act.

    Participating Fund

    Non-

    Participating Fund

    Total

    Rs. ' 000

    Rs. ' 000

    Rs. ' 000

    3,866,780

    2,472,575

    6,339,355

    2,810,245

    1,674,571

    4,484,816

    1,056,535

    798,004

    1,854,539

    -

    (798,004)

    (798,004)

    1,056,535

    -

    1,056,535

    Movement of One-off Surplus After Transfer

    Value of insurance contract liability based on independent actuary-NPV as at 31stDecember 2015

    Value of insurance contract liability based on independent

    actuary - GPV as at 31stDecember 2015

    Surplus Created due to Change in Valuation method from NPV to GPV- One off Surplus as at 1stJanuary 2016

    Transfer of one-off surplus from long term fund to

    restricted regulatory reserve.

    Surplus created due to Change in Valuation Method -One-off Surplus as at 30 June 2025

    The distribution of One-off surplus to Shareholders as dividends shall remain restricted until the Company develops appropriate policies and procedures for effective management of its business.

    SOFTLOGIC LIFE INSURANCE PLC

    NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. Composition of Investments Supporting the Restricted Regulatory Reserve as at 30 June 2025

    Asset Category ISIN No

    As at 30 June 2025

    Face Value

    Market Value

    Rs.

    Rs. ' 000

    Government securities

    Treasury bonds

    LKB00628A153

    100,000,000

    128,963

    LKB00628A153

    110,000,000

    141,859

    LKB00628A153

    100,000,000

    128,963

    LKB00628A153

    100,000,000

    128,963

    LKB00931E153

    100,000,000

    135,801

    LKB00931E153

    100,000,000

    135,801

    LKB00931E153

    120,000,000

    162,961

    LKB00931E153

    100,000,000

    135,801

    LKB00931E153

    100,000,000

    135,801

    LKB00931E153

    100,000,000

    135,801

    Total Market Value of the Assets

    1,370,714

    Restricted Regulatory Reserve

    798,004

  2. Valuation of Life Insurance Fund - (Zeroed Basis of Negative Liabilities at Product Level) as at 30 June 2025

    The valuation of life insurance fund as at 30 June 2025 was made by Appointed Actuary Mr. Kunj Behari Maheshwari, FIA, FIAI, of Messrs. Willis Towers Watson India Private Limited, who approved to transfer from Non-Participating Life Insurance fund / insurance contract liabilities to the Shareholders fund as surplus transfer.

    Accordingly, the Company transferred Rs.913 Mn from Non participating fund to shareholder fund as surplus transfer for the quater ended 30 June 2025 (2024 - Rs. 1,585 Mn).

  3. Liability Adequacy Test (LAT) - Life Insurance Contract Liabilities

    Liability Adequacy Test (LAT) in respect of the Insurance Contract Liabilities as required by SLFRS 4 - Insurance Contracts are carried out annually.

    SOFTLOGIC LIFE INSURANCE PLC

    NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. CAPITAL COMMITMENTS AND CONTINGENCIES
    1. Capital Commitments

      The capital commitments approved and contracted as at the reporting date were Rs. 2.16 million.

    2. Contingencies

      The Contingent liabilities of the company as at 30 June 2025, relates to the followings;

      Assessment in Respect of Value Added Tax (VAT)

      1. VAT assessments have been issued by the Department of Inland Revenue for the taxable period 2010 and was determined by the Tax Appeal Commission (TAC) in 2019. Out of total 11 assessments, 08 assessments were determined in favour of Commissioner General of Inland Revenue (CGIR) amounting to Rs. 46.5 Million including the penalty and 03 assessments were determined in favour of the Company amounting to Rs. 24.8 Million including the penalty.

        The Company transmitted the former case to the Court of Appeal being dissatisfied with the determination which determined in favour of the CGIR and case is stated for the opinion of the Honourable Court of Appeal. The Total tax exposure of this appeal is Rs. 46.5 Million including the penalty.

        The CGIR, transmitted the latter case to the Court of Appeal being dissatisfied with the determination which determined in favour of the Company and the case is stated for the opinion of the Honourable Court of Appeal.

        Assessment in Respect of Value Added Tax on Financial Services (VAT on FS)

      2. The CGIR issued its determination on the appeal filed by the Company relating to the assessment raised for Y/A 2014/15, 2016/17 and 2017/18 under the Value Added Tax Act amounting to Rs. 68.7 Million, Rs. 28 Million and Rs.

        102.4 Million respectively, in favour of the CGIR.

        For the Y/A 2014/15 and 2017/18, the Company has received the determinations of the TAC also in favour of the Company. However, the CGIR has transmitted the said cases to the Court of Appeal being dissatisfied with the determinations which determined in favour of the Company and cases are stated for the opinion of the Honourable Court of Appeal.

        The Company is in the process of hearing the other appeal on the Y/A 2016/17 with TAC, on the basis that the underlying computation includes items which are out of scope of the VAT Act.

      3. Assessment has been issued for the Company under the Value Added Tax Act, in relation to the Y/A 2019/20 and 2021/22 amounting to Rs. 433.16 Million including the penalty. For the Y/A 2019/20, the Company has appealed to TAC upon the receipt of the CGIR determination. For the other case, the company has appealed on the same basis as stated above and is awaiting for the CGIR determination.

        SOFTLOGIC LIFE INSURANCE PLC

        NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. CAPITAL COMMITMENTS AND CONTINGENCIES (Cont.) 12.2 Contingencies (Cont.) Assessment in Respect of Nation Building Tax on Financial Services (NBT on FS)

    1. An assessment has been issued under the Nation Building Tax Act, in relation to the Y/A 2018/19 amounting to Rs. 9.7 Million. The Company has filed an appeal to the CGIR on the basis that the underlying computation includes items which are out of scope of the NBT Act. The Company is awaiting the CGIR's determination.

      Life Insurance Taxation

    2. The TAC issued its determination on the appeal filed by the Company relating to the assessment raised for the Y/A 2010/11 amounting to Rs. 0.68 Million, in favour of the Company and the CGIR has transmitted this case to the Court of Appeal being dissatisfied with the said determination of TAC and case is stated for the opinion of the Honourable Court of Appeal. The Company is awaiting the decision of the Court of appeal.

    3. The TAC issued its determination on the appeal filed by the Company relating to the assessment raised for the Y/A 2011/12 and 2012/13 amounting to Rs.10.1 Million and Rs. 12.4 Million respectively, in favour of CGIR and The Company has transmitted the cases to the Court of Appeal being dissatisfied with the said determination of TAC and cases are stated for the opinion of the Honourable Court of Appeal. The Company is awaiting the decisions of the Court of appeal.

    4. The CGIR issued its determination on the appeal filed by the Company relating to the assessments raised for the

      Y/A 2014/15, 2015/16, 2016/17 and 2017/18 amounting to Rs. 681.7 Million along with penalty, in favour of the CGIR. For the Y/A 2014/15 and 2017/18, the Company has received the determinations of the TAC in favour of the Company.

      However, cases are stated in the Honourable Court of Appeal by the CGIR. The Company is in the process of hearing the appeals with Tax Appeals Commission for the Y/A 2015/16 and 2016/17.

    5. The CGIR issued its determination on the appeal filed by the Company relating to the assessment raised for the Y/A 2018/19, 2019/20 and 2020/21 amounting to Rs. 2,180.47 Million along with penalty, in favour of the CGIR. The Company has submitted petition of appeals with TAC.

    6. Assessment has been issued by the CGIR in relation to the Y/A 2021/22 amounting to Rs.688.97 Million including the penalty. The Company has submitted an appeal requesting an administration review on the same.

    7. The Company has received an Assessment on PAYE Tax for the Y/A 2016/17 amounting to Rs. 0.9 Million along with penalty for which company has duly submitted an appeal.

    The Directors are of the view that it has followed due process and acted in accordance with the prevailing laws in its tax submission and therefore, the probability of company having to settle any of this tax assessments are very low. In addition, there are no litigations and claims involving the Company that may have a material effect on the financial statements in the Directors' view.

    SOFTLOGIC LIFE INSURANCE PLC

    NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. EVENTS AFTER THE REPORTING PERIOD

    No circumstances have arisen since the reporting date which would require adjustments or disclosure in the Interim Financial Statements other than the following:

    Further to the disclosure made on 26thMarch 2025, approval was received from the Insurance Regulatory Commission of Sri Lanka (IRCSL), via letter dated 2ndJuly 2025, for the acquisition of all shares (representing 100% of the issued and paid-up share capital) of Allianz Life Insurance Lanka Limited by Softlogic Life Insurance

    PLC from Allianz SE.

    The transaction was completed on 11thJuly 2025, and the purchase consideration was duly paid.

  2. COMPARATIVE INFORMATION

    The presentation and classification in the financial statements are amended where appropriate to ensure comparability with the current period.

  3. SHARE INFORMATION
    1. Net Assets Per Share As at

      31.12.2024

      Rs.

      30.06.2025

      Rs.

      Net assets per share 37.72 32.73

      Net Asset per Share - Excluding One-off Surplus 35.20 30.20

    2. Market Price Per Share For the quarter ended 30 June

      2024

      Rs

      2025

      Rs

      Last traded price (Last trade date - 30thJune 2025) 73.00 67.00

      Highest traded price per share for the quarter 74.00 72.80

      Lowest traded price per share for the quarter 64.00 60.50

  4. STATED CAPITAL As at

    31.12.2024

    30.06.2025

    Stated capital (Rs.' 000) 1,062,500 1,062,500

    No: of Ordinary Shares 316,406,250 316,406,250

    For the Period ended 30 June

    2024

    2025

  5. BASIC AND DILUTED EARNING PER SHARE (EPS)

    Profit attributable to ordinary shareholders (Rs. 000) 1,221,146 2,056,208 Weighted average no: of shares as at 30 June 316,406,250 375,000,000 Basic / Diluted EPS (Rs.) 3.86 5.48

    SOFTLOGIC LIFE INSURANCE PLC

    NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. TWENTY LARGEST SHAREHOLDERS

    30.06.2025

    No. of Shares %

Name of Shareholder

1 Softlogic Capital PLC

161,367,187

51.00

2 Dalvik Inclusion Private Limited

59,531,790

18.81

3 Milford Ceylon (Pvt) Ltd

59,531,790

18.81

4 Seylan Bank PLC/G.A.Bhanuka Harischandra

1,848,503

0.58

5 People'S Leasing & Finance PLC/Mrs.H.A.J.Wickramasena

1,200,000

0.38

6 Commercial Bank Of Ceylon PLC/W. Jinadasa

1,039,276

0.33

7 Seylan Bank PLC/Eagle Crest (Pvt) Ltd

951,250

0.30

8 Mr. G.C. Goonetilleke

893,629

0.28

9 Senkadagala Finance PLC/L.A.J.F.Morais

666,773

0.21

10 Hatton National Bank PLC A/C No.4 (HNB Retirement Pension Fund)

484,523

0.15

11 Mr. D. Balasundaram

472,245

0.15

12 Mr. A.P.P.M. Abeyrathne

434,185

0.14

13 People'S Leasing & Finance PLC/Mr.D.M.P.Disanayake

367,829

0.12

14 Dialog Finance PLC/D.S.Nakandala

356,760

0.11

15 Assetline Finance Limited/R.S.P.Samaranayake

328,682

0.11

16 Mr. J.M.I. Jayaweera

324,545

0.10

17 Seylan Bank PLC/Anuja Chamila Jayasinghe

323,971

0.10

18 Mr. J.A.D.K.R. Jayasuriya

313,551

0.10

19 Mr. W.A.A.T.M. Jayawickrama

275,427

0.09

20 DFCC Bank PLC/A.S. Hathiramani

260,241

0.08

290,972,157

91.95

Others

25,434,093

8.05

Total

316,406,250

100.00

  1. PUBLIC SHAREHOLDING

The percentage of shares held by the public, the number of public shareholders and the float adjusted market capitalization are as given below:

As at

2025

Rs

2024

Rs

Public shareholding (%) - Compliant under Option 1 of CSE listing Rule 7.13.1.b

11.32

11.32

Public shareholders

5,254

4,841

Float adjusted market capitalisation (Rs.' 000)

2,615,348

2,468,458

Public Holding percentage - Ordinary Non-Voting Shares as at 30 June 2025 - Nil

20

DIRECTORS' SHARE HOLDINGS

As at 30 June

2025

Name of The Director

No. of Shares

%

Mr. A.K. Pathirage (Chairman)

Nil

Nil

Mr. T.M.I. Ahamed (Managing Director / CEO)

Nil

Nil

Mr. H.K. Kaimal - Director

Nil

Nil

Ms. Fernanda Lima - Director

Nil

Nil

Mr.V. Govindasamy - Director

Nil

Nil

Mr. R. Snyders - Director

Nil

Nil

Mr. P.L.P. Withana - Director

Nil

Nil

Mr. S.W. Mohottala - Director

Nil

Nil

SOFTLOGIC LIFE INSURANCE PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

  1. RELATED PARTY DISCLOSURES

    The nature of the related parties in the current period and terms and conditions of transactions with related parties are similar to those reported in the audited Financial Statements for the year ended 31 December 2024.

    1. Transactions with Key Management Personnel of the Company or its parent

According to Sri Lanka Accounting Standard (LKAS) 24 Related Party Disclosure, Key Management Personnel (KMP) are those having authority and responsibility for planning, directing and controlling the activities of the entity. Accordingly, the Directors (including Executive and Non-Executive Directors) and their immediate family members have been classified as Key Management Personnel of the Company.

Immediate family member is defined as spouse or dependent. A dependent is defined as anyone who depends on the respective KMP for his/her financial needs.

For the Period ended 30 June

2025

Rs.' 000

2024

Rs.' 000

Transactions with the Ultimate Parent and Parent

Recorded in the Income Statement:

Net premiums

5,693

5,438

Interest income

24,684

37,022

Expenses

1,010

1,192

Receiving of services

57,214

218,076

Recorded in the Statement of Changes in Equity and Statement of Financial Position:

Insurance premium receivable

93

259

Investments

180,837

496,767

Interest income receivable

1,000

-

Dividend paid

-

727,955

Transactions with Other Related Entities

Recorded in the Income Statement:

Net premiums

81,984

74,066

Expenses

221,267

201,162

Recorded in the Statement of Changes in Equity and Statement of Financial Position:

Insurance premium receivable

16,419

37,952

Investments

571,253

441,201

Commission receivable

45,816

-

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