Ceylinco Insurance announces record increase of 100 % in dividends to shareholders

Ceylinco Insurance, the market leader in Sri Lanka’s insurance industry, announced an unparalleled dividend of Rs. 12/50 per share to its shareholders for the year 2012, signifying a 100 % increase compared with the dividend paid out in the previous year. Ceylinco Insurance says that the company declared this dividend as a sign of appreciation for the tremendous trust placed in the company by its shareholders and policy holders. The company stated that that its success is a reflection of its resilience and strength expressed through share holder and customer confidence placed in the company. Ceylinco Insurance emerged as the undisputed market leader in the insurance industry for the ninth year running; showing ample evidence for its dominance in the insurance industry in Sri Lanka.    

Speaking on the occasion, Ceylinco Insurance – General, Managing Director / Chief Executive Officer Ajith Gunewardena said: “This kind of a record dividend was made possible by the steadfast confidence placed in us by our customers and our share holders, whose trust we value and our staff who went that extra mile to ensure the company maintained highest standards in customer care and added value to every aspect of the level of service we deliver. Sound management principles also helped the company achieve this level of success.”

Gunewardena also said that an increase in consolidated profits of 36% year-on-year speaks volumes. “Innovation has been key to success for us; developing and initiating services such as on-the-spot claim settlement that delivers what it promises and a wide network of branches that takes us closer to the customers, these have been important milestones in our success story,” he said.

“We are still the only insurance company in Sri Lanka to settle all claims including non-motor, on the-spot. What was first introduced to motor insurance in 2003 was later extended to cover health insurance the following year, and in 2007 all our products adopted the on-the-spot claim settlement methodology, revolutionising the very sphere of general insurance, for the second time in less than five years. It is interesting to note no other Sri Lanka insurer, or for that matter global insurer, has come even close to replicating this unique claim payment scheme,” Gunewardena added.  

Commenting on the performance of the company’s life division, where more than 153,900    new life policies were sold in 2012, Ceylinco Life Managing Director/ Chief Executive Officer,  R Renganathan said that the company’s performance was significant due to the fact  that  it had to face fierce competition of various forms. Ceylinco life  paid out Rs. 4 billion in customer benefits inclusive of another  Rs. 33.6 million as ‘Avurudu’ cash bonuses during the year 2012.

Renganathan also said that a key financial stability indicator; the company’s solvency margin had increased considerably in 2012 and was ten-times more than the required. “Shrinking of disposable incomes in target customer segments is a challenge to the growth of insurance but we have responded positively to the market conditions with innovative products that make insurance affordable. We have also invested in initiatives that enhance awareness of the need for insurance such as the life insurance week etc,” he added.