Ceylinco Insurance records Rs. 939.6 m pre-tax profit

Ceylinco Insurance plc announced a 50% dividend amounting to Rs. 130 million for the year 2009.

Despite the turbulent storms faced by the Ceylinco Group, Ceylinco Insurance plc has recorded Rs.939.6 million profit before tax an increase of 28% compared to the previous year.

The Deputy Chairman of Ceylinco Insurance (General) Ajith Gunawardena said that in the corporate history of Sri Lanka the crisis faced by Ceylinco group in the last year is the worst and it is similar to the tsunami faced by Sri Lanka in 2004. Despite turbulence Ceylinco Insurance performed well during the period as a blue chip company separate from the Ceylinco group.

During the difficult period non of our senior staffers or customers left the company.

This bonus is declared as a sign of appreciation for the tremendous trust placed in the company by our shareholders and policyholders, Gunawardena said.

Gunawardena said that Ceylinco Insurance has consolidated its position as the market leader for the sixth consecutive year in 2009 and stand stable as a blue chip company. Not depend on anyone.

With exceptional performance in 2009, shareholder funds of the company increased by 10% from Rs. 6.3 billion in 2008 to Rs. 6.9 billion in 2009. The total assets of the company increased to Rs.41.3 billion from Rs.37.5 billion.

Income from investments increased from Rs.2.9 billion in 2008 to Rs.3.5 billion in 2009.

Net value of the claims paid by the company has also increased from Rs. 6.8 billion in 2008 to Rs. 7.3 billion in 2009.

In 2008 the solvency ratio of the company stood five times higher above the stipulated amount and it was eight times high in 2009.

Share price of Ceylinco PLC increased to Rs.275 and it is the highest among the insurance industry and banks.

The success of the company is driven by our service excellence and Ceylinco Insurance takes insurance to the doorstep of the people. We have a 375 branch network and even under difficult conditions we were in the North and the East.

We have 1,500 marketing executives in general insurance, 3,700 consultants and 800 executives in life insurance islandwide, Gunawardena said. GW