Ceylinco Insurance announces record 275% dividend to shareholders

Ceylinco Insurance PLC has announced an incomparable dividend of Rs. 27/50 per share to its shareholders for the year 2016, which constitutes a 275% dividend of the original share price. This is also an increase of 22.2 % of the dividend declared for 2015. 

Ceylinco Insurance PLC said that the company was able to declare this dividend due to the exceptional results of its two wholly-owned subsidiaries, Ceylinco General Insurance Ltd and Ceylinco Life Insurance Ltd. Ceylinco Insurance PLC believes that its success is a reflection of its resilience and strength, expressed through the shareholder and customer confidence in the company.

The revenue of Ceylinco Insurance PLC exceeded Rs. 39.8 billion in 2016 with its insurance sector contributing Rs. 37 billion, the education sector Rs. 2.4 billion, the power and energy sector Rs. 211 million, with the others contributing the balance. The consolidated results recorded an imposing expansion, with the profit before tax reaching an exceptional Rs. 5.8 billion, and the after tax profit standing at Rs. 4.8 billion.

Ceylinco Insurance PLC Chairman Godwin Perera in his opening address said: “2016 was an outstanding year as both Ceylinco General Insurance and Ceylinco Life Insurance achieved the highest premiums ever. This was in addition to the significant contributions made by the power and education sectors. This enabled the directors to recommend a dividend of Rs. 27/50, which again is the highest dividend paid so far.”

Commenting on the achievement, Ceylinco Insurance PLC Managing Director/Chief Executive Officer Ajith Gunawardena had this to say: “This nature of a record dividend, one of the highest declared by a company in the financial sector was made possible by the steadfast confidence placed in us by our customers and our shareholders, whose trust we value, and our staff, who went that extra mile to ensure the company maintained the highest standards in customer care, adding value to every aspect of the level of service we deliver. Good governance, coupled with sound management principles and farsighted strategies that maximised resources and skills, also helped the company achieve this level of success.”  

Ceylinco Insurance PLC Director and Ceylinco Life Insurance Managing Director R. Renganathan said: “The impressive shareholder returns generated by the company are all the more noteworthy when considering Ceylinco Insurance’s record of claim settlement and payment of benefits to policyholders, as well as its commitments to the community. In 2016, the life insurance company alone paid out Rs. 6.8 billion in gross claims and benefits to policyholders, including Rs. 3.8 billion in annual bonuses. Ceylinco Life recorded net profit of Rs. 3.1 billion for the year and transferred Rs. 2.3 billion to shareholders. Dividends and earnings to shareholders for 2016 exceeded Rs. 3.4 billion.”

Ceylinco General Insurance Ltd. Managing Director Patrick Alwis commenting on the performance said: “The main contributor to the success of the group was the Insurance sector, which recorded a mammoth after tax profit of Rs. 4.4 billion, for the year ended 31st December 2016. Contributing to this remarkable performance, Ceylinco General Insurance recorded a profit after tax of Rs. 1.3 billion and paid claims to the tune of Rs. 10.5 billion, which is an increase of 59% over 2015. The unprecedented amount of money provided in lieu of claim settlement reflects the company’s continuing commitment to ensuring timely claim settlement to all customers. Ceylinco General Insurance has always maintained an undisputed and unmatched reputation for settling all claims On The Spot enabling our customers to return to normalcy in the fastest possible time.”