Unparalleled dividends from Ceylinco Insurance

Ajith Gunawardena	R Renganathan

Ceylinco Insurance, announced an unparalleled dividend of Rs 12/50 per share to its shareholders for 2012, signifying an increase of 100 % when compared with the dividend given in 2011. Ceylinco Insurance says that the company declared this dividend as a sign of appreciation for the tremendous trust placed in the company by its shareholders and policy holders.

Ajith Gunewardena Managing Director / Chief Executive Officer of Ceylinco Insurance - General said, "This kind of a record dividend was made possible by the steadfast confidence placed in us by our customers, our share holders whose trust we value and our staff who went that extra mile to ensure the company maintained highest standards in customer care and add value to every aspect of the level of service we deliver. Sound management principles also helped the company achieve this level of success."

Gunewardena also said that an increase in consolidated profits of 36 % year on year speaks volumes. Innovation has been key to success for us - developing and initiating services such as On the Spot Claim Settlement that delivers what it promises and a wide network of branches that takes us closer to the customers, these have been important milestones in our success story. We are still the only insurance company in Sri Lanka to settle all claims including non-motor On the Spot. What was first introduced to motor insurance in 2003 was later extended to cover health insurance the following year, and in 2007, all our products adopted the On The Spot claim settlement methodology, revolutionising the very sphere of General Insurance, for the second time in under five years. It is interesting to note no other Sri Lanka insurer, or for that matter global insurer, has come even close to replicating this unique claim payment scheme.

Commenting on the performance of the Life Division, where more than 153,900 new life policies were sold in 2012, Managing Director/ Chief Executive Officer of Ceylinco Life, R Renganathan said the company's performance was significant due to the fact that it had to face fierce competition of various forms. Ceylinco life paid out Rs 4 billion in customer benefits inclusive of another Rs 33.6 million as 'Avurudu cash bonuses' during 2012.

Renganathan also said that a key financial stability indicator, the company's solvency margin had increased considerably in 2012 and was 10 times more than the required. "Shrinking of disposable incomes in target customer segments is a challenge to the growth of insurance but we have responded positively to the market conditions with innovative products that makes insurance affordable."

"We have also invested in initiatives that enhance awareness of the need for insurance such as the Life Insurance week etc," he added.