Union Assurance declares higher dividends for policyholders

Insurance provider, Union Assurance declared a 11.5% dividend on their Life Advantage Plan for 2014. This is a significantly higher return on interest than the minimum guaranteed rate of 8%, a rate that is still higher than the predicted average market interest for 2014, which stood at 6.69%.

The year's bonus payout is consistent with the company's practice of providing policyholders with a significantly higher return than promised.

This is the second year running that Union Assurance presented its policyholders with a higher than expected dividend rate, delivering a dividend of 11.75% while the declared minimum guarantee rate was 9.5%.

Policyholders of 'Union Life Advantage' policies enjoyed this rate of dividend, which was based on the investment earnings on the life fund attributable to the dividend-based products of the company.

The share of dividends is calculated based on the amount in the investment account and is credited to relevant policy while the dividends will accumulate on a compounding basis.

Bonuses will be paid for 'with profit' policies, which were in force as at December 2014 with the bonus rate increasing for those policies in force for over 10 years. The company has paid higher dividends and bonuses due to its continued growth in 2014 by earning over Rs. 10 billion in combined gross written premiums.

The UA financial performance in 2014 also recorded an after tax profit of Rs. 1.2 billion, which is a notable growth (7%) over its performance in 2013.

Assistant General Manager, Life Operations, Mrs. Iroshini Tittagalla, said, "The company's performance in 2014 continued in the upward trajectory and it has considerably strengthened its position over that of 2014. The outlook for Union Assurance in 2015 continues to be extremely positive."

"The strong numbers this year demonstrates our determination to achieve, and our commitment to rewarding the trust and confidence placed upon us by customers," she said.

Union Assurance operates on the platform of trust, which enforces the brand values of convenience, respect, and transparency. It believes that sustainable growth can be achieved and maintained through correct strategies that ensure that the right people and the best processes are in place to provide an all-round customer experience.