Union Assurance posts 29% growth in turnover

Union Assurance business expansion initiatives gathered pace with the opening of a dedicated Motor Centre at Dharmapala Mawatha and a new branch office in the commercial hub of Kiribathgoda.

"The expansion of our branch network and motor centre was necessitated by the growing demand for the Union Motor policy," said Marina Tharmaratnam, CEO.

Backed by the combined strengths of the John Keells and Carson Cumberbatch groups, the company posted an impressive 29% growth in turnover, representing healthy increases in general and life insurance gross written premium.

General insurance premiums increased by 40% from Rs. 920 million in June 2005 to Rs. 1.3 billion in June 2006. Life insurance premiums also increased by 14% from Rs. 670 million in June 2005 to Rs. 767 million in June 2006.

Consolidated profit after taxation as at the half year ended June 2006 amounted to Rs. 50 million, compared with Rs. 71 million reported in the corresponding period last year. The decline in profit was attributed to expansion related expenses.

UAL's Chairman, Ajit Gunewardene said that "The results are in line with our strategy to expand and further exploit the retail, commercial and corporate segments of the market."