Union Assurance reports balanced growth in 2012

Union Assurance PLC (UA), a pioneer in the Sri Lankan insurance sector, completed 25 years of operations while reporting balanced growth in both turnover and profits.   

UA’s combined Life and General gross written premiums increased to Rs. 9.7 billion, achieving a 12% growth from the previous year. Life insurance premiums increased by 14% to Rs. 5.1 billion for 2012. Non-life insurance premiums contributed Rs. 4.6 billion to the combined turnover with 9% growth, while maintaining disciplined underwriting practices.

Both retail and corporate distribution channels maintained steady momentum in business volumes in achieving this growth. UA was able to leverage the professionalism of the distribution and technical teams as well as reinforce its reputation as a trusted service provider.

Profit before tax amounted to Rs. 1,008 million, a 32% increase over 2011. Profit after tax also increased by 33% to Rs. 921 million.

Commenting on the future outlook of UA, Chairman Ajit Gunewardene said: “John Keells Holdings has placed its trust in Union Assurance and is pleased to be part of its success. Union Assurance, with its strong brand image, professional team and distribution reach, is well positioned to step in to the next phase of its journey.”

UA successfully converged and presented its annual financial statements in accordance with the new Sri Lanka Accounting Standards (SLFRSs), which are prefixed with the International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).

“As Union Assurance enters its 26th year of operation, it is well positioned to capitalise on the growth opportunities that will follow rapid socioeconomic development. We believe that UA with its consistent focus on governance and transparency together with its team of dynamic professionals will be able to deliver sustainable value to all stakeholders,” said UA Chief Executive Officer Dirk Pereira.

Union Assurance was recognised both nationally and internationally for its excellence in business practices. UA’s 2011 Annual Report won several accolades at the Annual Report Awards ceremony conducted by the Institute of Chartered Accountants of Sri Lanka, including a Gold Award in the Corporate Governance Disclosures and Insurance Sector. UA also won the Silver Award for Overall Excellence in Annual Financial Reporting. UA’s sustainability practices were recognised by the Association of Certified Chartered Accountants (ACCA) by winning a Commendation award in the Medium Scale category.

In addition to the above, UA’s business practices were recognised for the fifth consecutive year at the Business Excellence Awards by the National Chamber of Commerce. These awards continue to highlight UA’s commitment to transparency and good governance.

UA was recognised internationally and received the prestigious ‘Celent Model Insurer Award’ for the best product design and definition for its Union eMotor online solution and received the ‘Best Insurer Technology Award’ at the Asia Technology Awards ceremony conducted by Asia Insurance Review.

UA was the only insurer to win Silver in the award category ‘Service Brand of the Year’ at the SLIM Brand Excellence Awards 2012 and also received an accolade for Brand Excellence in Banking and Financial Services at the Global Brand Congress held in Mumbai.

Union Motor Reload, the only motor insurance product in the market which provides cover for one, three or six months, was shortlisted for ‘Innovation of the Year’ at the Asia Insurance Industry Awards 2012 organised by the Asia Insurance Review. This is the flagship event of the Asian insurance industry.