Co-operative Insurance Company promotes Rs. 600 m IPO

Monday, 20 December 2021 05:20 - - {{hitsCtrl.values.hits}}

Co-operative Insurance Chairman Susil Weerasekera

Co-operative Insurance CEO Udaya Kumara

Co-operative Insurance Managing Director Wasantha Ranasinghe

The Co-operative Insurance Company Ltd. last week promoted its Rs. 600 million Initial Public Offering (IPO) which officially opens today.

The Colombo Stock Exchange (CSE) has approved, in principle, the application by Co-operative Insurance for the listing of its ordinary voting shares by way of an offer for subscription on the Diri Savi Board. It will offer 166.75 million shares at Rs. 3.60 each. The manager to the issue is Merchant Bank of Sri Lanka.

Co-operative Insurance Company Chairman Susil Weerasekera, Managing Director Wasantha Ranasinghe and CEO Udaya Kumara briefed the investors about the IPO. The past year, Co-operative Insurance’s (general) market share has increased to 4.42%, in comparison to 4.27% as in 2019. Compared to the general insurance industry GWP growth, which was -2.24% during the past year, the company recorded GWP growth of 2%. The company reported a five-year Average Annual GWP Growth Rate of 21% of GWP, while the general insurance industry five-year GWP Average Annual growth was at 8.95%. Profit After Tax (PAT) for 2020 rose to Rs. 695 million, an increase of 155% YoY. Profit Before Tax (PBT) grew by 120 % compared to the previous year to stand at Rs. 940 million.

“This IPO is an important milestone for Co-operative Insurance and is a firm testament to the continued dedication and passion of our staff and the firm loyalty of our clientele. Our steady, undeterred performance continued to demonstrate stability and resilience during a period that was characterised by numerous restrictions forced into play by the global pandemic. Right now, we are bullish of what Co-operative Insurance can achieve during our IPO, and in turn how it will help elevate our portfolio in 2022,” Weerasekera said.

Pix by Upul Abayasekara