Union Assurance records steady progress

Union Assurance PLC recorded steady progress during the year, despite the general trend being one of consolidation and contracting bottom lines.

Having espoused the tenets of transparency, accountability and governance as business fundamentals, UAPLC stands among its insurance counterparts as a benchmarked leader. The many local and international accolades the company has received in the recent past for their annual reporting processes, HRM practices, brand strength and business practices stand testament to this fact.

In addition, at a time that most corporates' in Sri Lanka are speaking of challenges ahead, John Keells Holdings, one of the largest conglomerates in Sri Lanka has infused a further capital investment of Rs. 1 billion into Union Assurance, signaling that the company is not only financially stable but has significant long term potential as well. Deputy CEO of Union Assurance Dirk Pereira, said the company reported a year on year growth in turnover and profitability.

Pereira said that turnover from life and general businesses increased by 21% from Rs. 4.6 billion in 2007 to Rs. 5.6 billion in 2008. Consolidated profit before tax increased by 40% and profit after tax increased by 35% from Rs. 254 million in 2007 to Rs. 342 million in 2008.

Based on these results, the Board of Directors has recommended a first and final dividend of Rs. 3.25 per share, to be ratified at the AGM scheduled for March 31.

General Manager, Marketing and Distribution Rukman Weeraratne said the current environment highlights more than ever the importance of transparency, good governance and a strong balance sheet for organizations involved in the financial services industry.

"There are ample opportunities for such companies to thrive," he said.

"For UA, the outlook for the life insurance industry is positive, considering the relative under penetration, rapidly ageing population (which requires pension and health care solutions) and overall improvement in income and living standards."

His positive take on the entire macro picture is that UA will continue to thrive, given the company's distribution network of 52 strategically located branches, sophisticated technology enabling accessibility, continuous investment in training and development.