Union Assurance reports steady growth up to 3Q

Union Assurance PLC (UA), a leading player in the Sri Lankan insurance sector, maintained a steady growth momentum in both turnover and profits for the nine months ended 30 September 2011.

UA reported a growth rate of 28% in combined gross written premiums and 26% growth in profit after tax compared to the same period of the previous year.

Combined gross written premiums of the company increased from Rs. 4.8 billion for the first nine months of 2010 to Rs.6.1 billion for the nine months ended 30th September 2011.

Life insurance gross written premium grew by 33% from Rs. 2.4 billion as at September 2010 to Rs. 3.2 billion as at September 2011. General insurance gross written premium also recorded a 24% growth from Rs. 2.4 billion in 2010 to Rs. 3 billion in 2011. Growth was reported from both corporate and retail customer segments, and from all classes of general insurance business.

The decline in investment income for the period was due to the mark to market losses incurred in the life and general equity portfolios.

Profit after tax increased by 26% from Rs. 144 million in September 2010  to Rs. 182 million in September 2011 excluding the surplus from life insurance business which is determined after an actuarial valuation which is conducted at the end of the year.

As at end of 30 September 2011 the Union Assurance life fund stands at Rs. 13.4 billion which is one of the largest life funds in the industry.

The outstanding growth rate of the company can be attributed to innovative and customised solutions it offers to both life and general insurance customers. The highly trained and professional sales force of the company displayed exceptional performance throughout the period, securing new businesses and consolidating relationships with existing clients with a renewed focus on service.

The company launched Union Family Health Net, in response to the rising demand for a cost effective, stand alone health insurance solution. The policy offers a comprehensive cover against hospitalisation, OPD and critical illnesses for persons between the ages of 1 to 65 years on an individual basis or as a family unit.

A key feature of the product is that an individual, whose insurance is paid by the employer, could extend the coverage to his/her family at a discounted premium. In the case of critical illness, the payout is increased to 150% of the annual policy limit.

The Union Assurance brand is positioned on the promise of “trust” and strives to deliver this promise by being transparent, convenient and respectful when dealing with all stakeholders.