Union Assurance profit after tax up 63% to Rs. 254m in 2007

Powered by the combined strengths of the John Keells and Carsons Groups, Union Assurance (UA) reported a 63% increase in profit after tax from Rs. 156 million in 2006 to Rs. 254 million in 2007. The company's turnover grew by 23% over 2006 to Rs. 5 billion in 2007. Both general and life insurance premiums contributed to this growth momentum.

The company's balance sheet was further strengthened with net assets growth of 24% over the previous year.

Both segments of business contributed to the significant increase in profitability. General insurance profit after tax increased from Rs. 83 million in 2006 to Rs. 108 million in 2007, representing a year on year growth of 29%. Profits from the life business nearly doubled from Rs. 76 million in 2006 to Rs. 144 million in 2007.

A first and final dividend of Rs. 2.75 per share for the year 2007, has been recommended by the Board of Directors for approval by the shareholders at the annual general meeting on March 31.

"We are pleased with the outcome of our decision to expand the life insurance business and exploit the opportunities in the retail and commercial segments of the general insurance business," said Chairman, Ajit Gunewardene.

He said, "In addition to posting excellent financial results, the company was also able to secure several national and international awards, which reflect the high standards the company has achieved in terms of its business processes, reporting practices and corporate governance, aspects which are vital to build trust and confidence among all stakeholders."

He also recognised the contribution of the Insurance Board of Sri Lanka in improving the supervision and regulation of the insurance industry.

Commenting on UA's performance CEO Marina Tharmaratnam said, "The excellent results we have achieved is a direct result of our continuous efforts to improve service standards, enhance distribution capability and brand visibility in our chosen markets and the innovative products we introduced during the year"