Union Assurance continues growth momentum in 1H 2012

Union Assurance PLC (UA), a leading player in the Sri Lankan insurance sector, maintained a steady growth momentum in both turnover and profits for the first half of 2012.

UA reported a growth rate of 20 % in combined gross written premium and 31 % growth in profit after tax compared to the same period of the previous year.

Union Assurance CEO Dirk Pereira

Combined gross written premium increased from Rs. 3.8 billion for the first six months of 2011 to Rs.4.6 billion for the six months ended June 30, 2012.

Life insurance gross written premium grew by 21 % from Rs. 2 billion as at June 2011 to Rs. 2.5 billion as at June 2012.

General insurance gross written premium recorded a 20 % growth from Rs. 1.8 billion in 2011 to Rs.2.1 billion in 2012.

Growth was reported from both corporate and retail customer segments, and most classes of general insurance business reported a year on year growth.

Profit after tax increased by 31 % from Rs.120 million in June 2011 to Rs.157 million in June 2012 excluding the surplus from life insurance business which is determined after an actuarial valuation which is conducted at the end of the year. As at June 30 2012, the Union Assurance life fund including unit linked fund stands at Rs. 15.3 billion which is one of the largest life funds in the industry.

Dirk Pereira Chief Executive Officer of UA said "We are very satisfied with the overall performance given the current dynamics in the insurance market. Gross premium increased compared to 2011 and investment performance was also satisfactory."

The financial statements for the period ended June 30, 2012 have been prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRS / LKASs) which have converged with the International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).

The Union Assurance brand is positioned on the promise of "trust" and strives to deliver this promise by being transparent, convenient and respectful when dealing with all stakeholders.