Sunday Dec 15, 2024
Sunday Dec 15, 2024
Thursday, 12 March 2020 00:00 - - {{hitsCtrl.values.hits}}
Union Assurance (UA) recorded a satisfactory performance during the year despite 2019 being one of the most challenging years in the recent past. Gross Written Premiums amounted to Rs. 11.6 b, a growth of 4% over last year while Annualised New Business Premiums (ANBP) recorded a significant growth of 20% year on year.
The company recorded Profit Before Tax of Rs. 1.7 b in 2019 compared to the Rs. 2.1 b in 2018, which benefited from a notional tax credit of Rs. 536 m. Recurrent Profit After Tax increased by 2% against the previous years’ Rs. 1,136 m.
Investment income was Rs. 4.4 b despite a lower interest rate trajectory. Claims and benefits increased by 20% to Rs. 3.5 b compared to the previous year mainly due to an increase in maturity and surrender payouts by 18% and 24% respectively.
Maturity payments were made in accordance with the contractual obligations of the Company and surrender payments has increased due to challenging economic conditions. Change in contract liabilities – Life fund increased by 28% to Rs. 5 b over the last year in line with the growth in the life insurance portfolio and contractual obligations.
Underwriting and net acquisition costs decreased by 10% to Rs. 1.9 b with changing composition of new and renewal business and incentive structure. Focused cost management strategies resulted in other operating expenses, administrative and selling expenses decreasing significantly by 14% compared to the previous year.
Total assets of the company grew by 12% to Rs. 55.2 b with the investment portfolio which accounts for 81% of assets growing by 15% during the year. Total liabilities meanwhile grew by 15% with the life fund which accounts for 87% of liabilities, amounting to Rs. 35.5 b growing by 16% during the year aligned with business growth.
The company maintains a healthy Capital Adequacy Ratio (CAR) reflecting its strong solvency position. Insurance liabilities are backed by reinsurers who have credit ratings of ‘A+’ or above from international rating agencies.
Union Assurance has ended 2019 on a positive note and is excited for a prosperous year ahead with the new appointment of its Chief Executive Officer Jude Gomes who took office on 1 December 2019. Gomes brings with him a wealth of experience in the financial services industry across different geographies.
The company is confident that with its strong brand, reputation for good governance, professional team and performance driven culture combined with financial strength and customer centric strategy, it will be able to deliver sustainable value to all stakeholders in the years to come.
