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Monday, 30 June 2014 00:00 - - {{hitsCtrl.values.hits}}
The insurer, which is a member of the Al-Futtaim Group, has not requested from the regulator to be exempted from the requirement of going public even though it is already listed on the United Arab Emirates (UAE) stock exchange.
While some foreign owned insurance companies listed in other countries had requested for an exemption in this regard, UAE President/Orient Insurance Sri Lanka Chairman Omer Elamin said the institution will comply with the law.
“If the law says we should be listed then we will. We feel that under the law no one can be exempted. If there are any changes in the law we will comply. Keeping in line with that, Orient Insurance Sri Lanka is getting ready to be listed in the CSE by October this year,” Elamin told the Daily FT during the sidelines of the launch of ‘Travel Care’, its newest policy.
The local insurance law requires all insurers to be listed by 11 February 2016, and those insurers registered with the IBSL after 11 February 2011 to go public within three years.
However, fully foreign-owned insurers that are owned by a holding company incorporated abroad and listed on a stock exchange acceptable by the IBSL are to be exempted on request under changes planned to the insurance law.
With Orient Insurance Sri Lanka current offering only general insurance policies, it has in its medium term plans to bring in life insurance as well.
“Since we will need two licenses we thought that we don’t want to ride two horses at the same time. We will first establish the general insurance company and then once that it reaches a certain stage of stability we will move into life,” he shared.
According to Elamin, the progress of Orient Insurance Sri Lanka is on track and as planned. Stating the company is in Sri Lanka to add value and not capture market share by undercutting rates, he stated with this policy the company has done well, if not better than expected.
Having recorded a net profit of Rs. 6 million in its second year of operations, Elamin is confident the company will record a higher profit by the end of 2014 and will continue have a 15% YOY growth for the next three years. “All in all we are satisfied with the progress of the company,” said Elamin.
Acknowledging that the insurance penetration in Sri Lanka is on a declining trend, Elamin noted this is due to the awareness on the need and importance of having a policy not being at the required level.
To improve this situation he said it is necessary for all insurance companies to come together work towards this endeavour.
“There is defiantly a need to increase awareness. For this insurance companies will have to join hands and this can probably be done through the Insurance Association of Sri Lanka (IASL). It is important they work together to increase the awareness of the public on the importance of insurance. It should be a joint effort of the whole market.”
Orient Insurance Sri Lanka currently handles all classes of general insurance namely fire, motor, marine import and export, and property insurance. The company also offers casualty, accident, liability, and medical insurance covers.
Orient Insurance Sri Lanka and Orient Insurance OJSC are part of the Al-Futtaim Group which has been in operation since 1930 and is one of the most diversified business conglomerates based in the UAE.
Orient Insurance PJSC has an ‘A’ rating from Standards & Poor’s and an ‘A Excellent’ from AM Best. The business is recognised to be one of the largest insurers in the Middle East.
