UA consolidates performance in 3Q

Union Assurance PLC (UA), a leading player in the Sri Lankan insurance sector, consolidated its position by reporting steady growth in both turnover and profits for the nine months ended September 30, 2012. UA reported a year on year growth rate of 15 % in combined gross written premium and profit after tax.

Combined gross written premium increased from Rs. 6 billion for the first nine months of 2011 to Rs.6.9 billion for the nine months ended September 30, 2012. Life insurance gross written premium recorded a growth of 17 % from Rs. 3.2 billion as at September 2011 to Rs. 3.7 billion as at September 2012. General insurance gross written premium recorded a 13 % growth from Rs. 2.8 billion in 2011 to Rs 3.1 billion in 2012.

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

Profit after tax of Rs 223 million, was an increase of 15 % from Rs. 194 million reported in September 2011.

The profit excludes the surplus from life insurance business which is determined after an actuarial valuation which is conducted at the end of the year.

As at end of September 30, 2012 the life fund stands at Rs16.4 billion including the unit linked fund and is one of the largest life funds in the industry.

Dirk Pereira Chief Executive Officer of UA said "We are pleased with the progress we are making in achieving our twin objectives of growing both turnover and profits of the business. Given the current dynamics in the insurance market, we retain a positive outlook with regard to the company's prospects in the short to medium term."

The financial statements for the period ended September 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).

UA announced a rights issue of one ordinary share for every seven shares to strengthen the capital position of the company to proactively meet future regulatory requirements. The issue was approved by the shareholders at the extraordinary general meeting held on November 12, 2012.