Union Assurance continues strong growth momentum

INSURANCE: Powered by the combined strengths of the John Keells and Carsons Groups, Union Assurance reported that their focused investments to enhance distribution, brand visibility and service standards yielded good results, enabling them to achieve their revenue and profit targets.

Consolidated gross written premium increased by 28% from Rs. 3.2 billion in 2005 to Rs. 4.1 billion in 2006 and consolidated profit after tax amounted to Rs. 156 million.

They report that the profit is in line with the company’s profit expectation for the year but lower than the profit earned in 2005 of Rs 262 million, as the company invested significantly in charting a new and more aggressive course for both the life and general business to deliver sustainable growth in the long term.

“The results are in line with our strategy to expand, and further exploit the profitable opportunities in the retail, commercial and corporate segments of the market,” noted Chairman Ajit Gunewardene, adding that, “We believe we have laid solid foundations for the future and will take full advantage of the momentum we have created to deliver economic value.”

The directors have recommended a 20% first and final dividend for the year on the existing share capital and thereafter a bonus issue of one ordinary share for every two shares held to increase the share capital to Rs. 375 million.

UAL won the award for the best annual report 2005/06 in the insurance sector from the Institute of Chartered Accountants of Sri Lanka (ICASL) and the best annual report in the non banking financial sector in the South Asian Region awarded by the South Asia Federation of Accountants (SAFA) demonstrating their commitment to transparency, corporate governance and professional management with equal focus on all stakeholders.

In 2006 UAL invested heavily in distribution and initiatives to enhance customer service.