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Union Assurance PLC (UA) reported steady progress in 2017, recording Rs. 10.1 billion gross written premium, a 22% growth compared with the previous year. Regular new business premiums grew by 25% compared to previous year and UA was the third largest new business producer with the highest growth amongst the top seven players in the industry for the year.
UA recorded a profit after tax of Rs. 7.4 billion compared with Rs. 1.3 billion in 2016. The PAT included Rs. 3.4 billion one off surplus transfer from non-participating life fund and Rs. 188 million as UA’s share of profits from the general insurance business of Fairfirst Insurance Ltd.
Investment income recorded a 38% growth, mainly due to increase in interest rates of Government securities in the first half of the year and unrealised gains from equities.
Net insurance benefits and claims increased by 75% mainly due to increase in maturities and surrender payouts. Maturity payouts are in line with UA’s contractual obligations and surrenders have increased due to the challenging economic environment. Underwriting and net acquisition cost increased by 28% to Rs. 1.8 billion due to increase in GWP and changes in variable incentive structures. Other operating, administrative and selling expenses increased by 21% to support growth.
As a result of the above, as at 31st December 2017, UA’s life fund stood at Rs. 29 billion, a 4% decrease from previous year. UA maintained a capital adequacy ratio (CAR) of 352% indicating the financial strength of the business. The minimum regulatory requirement is 120% with a regulatory intervention CAR of 160%.
UA recently introduced two new life insurance solutions to its customers. ‘Union Pension Advantage,’ targeting retirement needs and ‘Union Smart Health Plus,’ a health rider which reimburses health related expenses incurred locally and overseas. The latter product has several other unique features including a no claim bonus, cashless service, free fitness tracker, deductible options and reinstatement benefit (revival benefit).
UA was adjudged winner in the Finance and Insurance Sector for the 10th consecutive time at the ACCA Sustainability Reporting Awards. The company’s 2016 annual report receiving a Silver Award in the Insurance Category and a Silver Award for best Corporate Governance Disclosures. The National Chamber of Commerce acknowledged UA at the National Business Excellence Awards with a silver award for Excellence in Corporate Governance and a silver award in the Insurance Category.
The Great Places to Work© (GPTW) Institute recognised Union Assurance PLC – for the fifth consecutive year as a work place paving the way to receive the prestigious Laureate Status. The company received a platinum award for people development at the SLITAD People Development Awards ceremony. UA is the only company to win the platinum award for two consecutive years.
Anchored by a team of experienced and dynamic professionals, UA is backed by a strong capital base and reinsurance partnerships with highly rated global reinsurers. Celebrating over 30 years of excellence, Union Assurance continues to invest in people, products and processes to drive towards a successful mission empowered with life-changing partnerships.
