Ceylinco Life declares Rs 2.4 bn in annual bonuses

Policyholders who qualify for annual bonuses from Ceylinco Life will receive 25 percent above their entitlement this year, as the life insurance leader celebrates 25 years in business. More than 340,000 policyholders will benefit from this special 25th anniversary windfall, receiving a total of Rs 2.4 billion in bonus payments in April 2013, the company announced.

This bonus, which is in respect of the surplus generated by Ceylinco Life's Life Fund in FY 2012, reflects a 33 percent increase over the Rs 1.8 billion in annual bonuses paid in respect of the previous year.

As in previous years, even policyholders who purchased their policies in December 2012 will be eligible to receive a bonus, in line with the company's policy of declaring bonuses from the very first year of issue of a policy.

"Ceylinco Life has much to celebrate as it embarks on its 26th year in business, not least of all the fact that it has been the market leader for the past nine years," the company's Managing Director and CEO R. Renganathan said. "Our policyholders are our biggest asset, and it is most appropriate that we celebrate our 25th anniversary by giving them a tangible benefit. This year's bonus payout is consistent with our policy of providing Ceylinco Life policyholders with a significantly higher return than promised," he added.

Ceylinco Life made a net transfer of Rs 7.62 billion to its Life Fund in 2012, an increase of Rs 1.29 billion or 20.4 percent over the previous year's transfer.

As a result, the company's Life Fund grew by 19.9 percent to Rs 45.823 billion at the end of the year.The bonus payout announced takes the total benefits paid to Ceylinco Life policyholders in respect of 2012 to Rs. 3.9 billion, an increase of Rs 1 billion or 35 percent over the previous year.

Independently rated one of Sri Lanka's most valuable brands, Ceylinco Life has maintained its leadership of the country's long term insurance sector from 2004 onwards.The company operates the largest branch network among local life insurance companies, and has won multiple international and local awards for its commitment to the community and success in brand equity building.