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Union Assurance Exceed Expectations Once Again: Sets Benchmark for the Industry Higher

Union Assurance, Sri Lanka’s trusted insurance provider, declared an 11.5% dividend rate 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 policy holders with a higher than expected dividend rate, delivering a dividend rate of 11.75% while the declared minimum guarantee rate was 9.5%.

Policyholders of ‘Union Life Advantage’ policies were able to enjoy this rate of dividend, which is 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 more than 10 years. The company has been able to pay higher dividends and bonuses due to its continued growth in 2014 by earning over Rs. 10Bn in combined gross written premiums. The UA financial performance in 2014 also recorded an after tax profit of Rs. 1.2 Bn, which is a notable growth (7%) over its performance in 2013.

Assistant General Manager, Life Operations, Mrs. Iroshini Tittagalla, commenting on the achievement stated, “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 our loyal customers.

Union Assurance operates on the platform of Trust, which enforces the brand values of convenience, respect, and transparency. Union Assurance believes that sustainable growth can be achieved and maintained through the use of correct strategies that ensure that the right people and the best processes are in place to provide an all-round customer experience. This customer-centric approach has resulted in steady and continuous growth over the years, with excellent end-year financials results in 2014 reinforcing the Company’s reputation as a trusted service provider.