Corporate news

Ceylinco Life heralds another record year

Premium income Rs.7.4 bn Life fund grows to Rs.21.2 bn:

Life insurance leader Ceylinco Life achieved yet another milestone when benefits paid out to policyholders exceeded Rs 2000 million in the first 11 months of 2008, while the company's solvency margin remained at five times the margin stipulated by statute.

Announcing this performance landmark, the company said this week that premium income had reached Rs 7,434.7 million as at November 30, indicating a growth of 20.37 per cent over the preceding 12 months.

"These are particularly noteworthy indicators, given the challenging market conditions that prevailed throughout the year just concluded," Ceylinco Life Chief Executive Director Rajkumar Renganathan said. "Premium income figures for December 2008 are being finalised, but we already know that it was a record month."

The company's Life Fund which stood at Rs 20.4 billion as at September 30 had grown by Rs 800 million over the next two months to Rs 21.2 billion at the end of November 2008, Renganathan disclosed.

He said the benefits paid by the company during this period included maturity benefits, claims, surrender value settlements and bonuses.

In addition to these, policyholders had also received numerous payments and benefits under the 'Life Rewards' scheme of Ceylinco Life. "New business in the month of December 2008 alone clearly indicates that our momentum has not slowed and that public confidence remains as high as it ever was," Renganathan said, revealing that in terms of premium income, December 2008 would turn out to be the best month yet in the company's history.

"The figures show that Ceylinco Life will emphatically maintain its position as the largest life insurer in 2008, making it our fifth year at the top, he said.

The strong growth of the company's Life Fund reflects the prudent management of investments in a tough market environment, Renganathan added, disclosing that the bulk of the fund's investment was in Government securities. The fund has also diversified its investments in to areas such as real estate, licensed commercial banks and other low risk sectors.

Ceylinco Life's market leadership of has been confirmed by the sector's regulator, the Insurance Board of Sri Lanka (IBSL), according to whose 2007 Annual Report, Ceylinco Life's market share stood at 33.03 per cent on the basis of Gross Written Premium.

According to figures published by the IBSL, Ceylinco Life's market share for 2004, 2005 and 2006 was 31.65 per cent, 32.36 per cent and 33.43 per cent respectively.

Ceylinco Life which has more than 750,000 lives covered by active policies is acknowledged as the benchmark for innovation in the local insurance industry for its work in product research and development, customer service and professional development. In keeping with its vision of protecting every Sri Lankan family with insurance, the company has developed many products to make insurance affordable and appealing to diverse market segments, and today has the widest portfolio of products in the local market.

This approach is supported by the company's physical presence, with a truly islandwide branch network that is the largest in the industry.

Chandula to address Harvard business conference

Chandula Abeywickrema, Chairman of the Banking With The Poor (BWTP) Network and the Deputy General Manager (Personal Banking & Network Management) of Hatton National Bank, has been invited to speak at the Harvard Asia Business Conference, the largest Asia-focused business conference in North America by the Harvard Business School and Alliance for Financial Inclusion. This year's conference will be convened on February 14-15 2009, at the Harvard Business School in Boston, Massachusetts.

The Asia Business Conference is an annual gathering jointly organised by the Harvard Business School, the Harvard Law School, and the Harvard Kennedy School of Government. The conference aims to foster meaningful discussion on policies and trends that dominate the business and legal institutions of modern Asia. To this end, the conference organises a series of keynote speeches, plenary sessions, topical panels, and social events featuring distinguished leaders from industry, government and academia who have intimate experience in Asia. Abeywickrema who is the Chairman of BWTP Network, the largest Asia based Microfinance Network with a membership of over 50 leading financial institutions in 15 countries in Asia, has been recognised for his contribution to Microfinance in Asia, as its Chairman.

Outstanding professionals for 2008

The Centre for Leadership Excellence and personality Development (CENLEAD) has adjudicated the following seventeen professionals as the most outstanding professionals for the year 2008:

Dinesh C. A. Sattrukulsinghe, CEO Tech Sys Ltd., Anuradha Tennakoon, CEO, Motorola Technologies Lanka Ltd., Prasantha Kularatna, CEO, Premium International Ltd., Dinesh Kumar, CEO, Streamline International Ltd., A. Jayaseelan, CEO, ABC Trade and Investments Ltd., Gamini Jayasuriya, Director, Lalan Rubbers Ltd., Sarath Dias Bandaranayake, Deputy General Manager, Seylan Bank, Sherin Wijeratne, Asst.General Manager, Bank of Ceylon, N. Baskaran, Head of Division, Sri Lanka Telecom, Capstran Lambert, Director, CCS Elsuma Ltd, Hector Perera, General Manager, Laugfs Ltd, Ajith Rohana De Costa, Treasurer, Institute of Personnel Management, Prasad Jayasuriya, Country Head, Ceylinco Toll Ltd, M. S. M. Faizar, Manager Human Resources, ZAM Gems Ltd, L. P. Tillekeratne, Director, Penthouse Group Ltd, W. M. S. Bandara, Director, Penthouse Group Ltd, Nalaka Senanayake, Manager, Royal Jordanian Airlines.

CDB revenue up 55%

According to the Ceylinco Development Bank Ltd (CDB) financial results for the year ended December 31, 2008 total assets grew by 26 per cent to reach Rs. 6.79 bn whilst revenue reached Rs. 1.63 bn reflecting a growth of 55 per cent compared to 2007. Net interest income grew by 28 per cent to Rs. 408 mn. According to CDB sources, the growth in net interest income has been possible due to timely price adjustments and early measures adopted by CDB to manage margins despite substantial increases in market rates which include changes to the lending product portfolio and rural market penetration. Disbursement of new facilities in 2008 stands at Rs. 2.6 bn reflecting a growth of 24 per cent compared to the previous year.