Union Assurance reports steady progress in Q1
Union Assurance reported positive results in both turnover and
profits in the first quarter of 2010, following the successful launch of
the company's new brand promise.
Union Assurance Chairman,
Ajit Gunewardene |
Total revenue which comprises premiums (net of reinsurance) and
investment income from both life and general insurance businesses
increased by 17 percent from Rs 1.5 billion as at March 2009 to Rs 1.7
billion as at March 2010. Gross written premium increased by 6 percent
from Rs. 1.5 billion to Rs. 1.6 billion during the same period.
Life insurance premiums reported an impressive growth rate of 23
percent, growing from Rs 615 million as at March 2009 to Rs 758 million
as at March 2010.
General insurance premiums reported a decline of 6 percent during the
same period.
Profit before tax of Rs 70 million as at March 2010 was 5 percent
higher than the profit reported as at March 2009.
Profit after tax of Rs 51 million was in line with the profit
reported in 2009.
The profit figures do not include profits from the life business,
which is computed at year end following an independent actuarial
valuation.
The UA brand received an AA rating in terms of its "brand power" from
Brand Finance (UK). The rating denotes a very strong brand strength
which can be leveraged to deliver future revenue streams and exploit
growth opportunities.
"We are pleased with the results UA has achieved in the 1st quarter
following the brand initiative which was launched at the beginning of
the year," Union Assurance Chairman Ajit Gunewardene said. "We are very
positive that the new brand promise, combined with 20 years of heritage,
will enable UA to exploit the significant opportunities in the financial
services industry in the short to medium term."
"The results of the first quarter reflect our commitment to maintain
the growth momentum of our life business, while focusing on improving
the profitability of our general insurance business," Union Assurance
CEO Dirk Pereira said. |