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Union Assurance declares higher dividends for 2013

Union Assurance, Sri Lanka’s trusted insurance provider declared an 11.75% dividend rate on their Life Advantage Plan for 2013. This is a significantly higher return on interest than the minimum guaranteed rate of 9.5%, with the average market interest for 2013 standing at 10.23%. It is important to note that the minimum guaranteed rate for 2013 was 9.5%. The year’s bonus payout is consistent with UA’s policy of providing policyholders with a significantly higher return than promised. Union Assurance presented its policy holders 11.5% declared dividend rate in 2012, which was also above the minimum guaranteed rate.

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 dividend based products of the company. The share of dividends calculated based on the amount in the investment account 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 2013 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 impressive growth trajectory in 2013 by earning over Rs. 10Bn in combined gross written premiums. The UA financial performance in 2013 also recorded an after tax profit of Rs. 1 Bn, which is an impressive growth of 22% over its performance in 2012.

“UA’s presentation of dividends and bonuses reflects the company’s strong financial performance in 2013 and our positive outlook for 2014,” said Mrs. Iroshini Tittagalla, Assistant General Manager – Life Operations. “It also demonstrates our continued growth and the stability of the company which is also a testament of the confidence placed upon us by our customers”.

Union Assurance operates on the platform of Trust with brand values convenience, respect and transparency. UA and its staff commit to these values by living it on a daily basis. Union Assurance is convinced that sustainable growth can be achieved and maintained through the use of correct strategies which ensure people and processes are in place. A more customer-centric approach has resulted in steady and continuous growth over the years, with excellent end-year financials results in 2013 reinforcing its reputation as a trusted service provider.