With impressive financial results in the first half of 2022, Union Assurance PLC has reinforced its position as a high-performing Life Insurer in Sri Lanka. Despite operating in challenging market conditions, the Company saw growth across a number of key areas. According to the interim financial statements for the six months ended June 30, 2022, progress was achieved in all key parameters, from gross written premium and profit before tax to investment income and claims honoured.
The gross written premium of Union Assurance grew by 15% over the corresponding period of last year, rising from Rs.6.54 billion to Rs.7.52 billion. This was driven by double-digit growth in regular new business premiums and renewal year premiums. The Company recorded the second highest growth rate in regular new business premiums among the top five players, with a growth rate of 8%, which is significantly higher than the industry level. It also achieved the second highest growth rate in renewal year premiums among the top five, with a growth rate of 18%, which is above the industry level.
The net written premium also increased from Rs.6.1 billion to Rs.7 billion. The Company’s growth came largely from the long-term Life Insurance business, though the industry has mostly grown from the single premium business. In the first half of this year, the Company honoured Rs.2.2 billion in claims. This is a 22% increase over the Rs.1.8 billion in claims during the corresponding period of last year.
Significant growth was achieved in profit before tax, which rose by 33%, from Rs.462 million to Rs.614 million. The profit after tax also increased from Rs.402 million to Rs.480 million. The growth in profits was mainly due to the increase in investment income during the period. Net investment income rose by 19%, from Rs.2.64 billion to Rs.3.13 billion, an increase driven by the higher interest rate environment and focused investment strategy. Total net revenue grew marginally from Rs.9.10 billion to Rs.9.47 billion.
The Chief Executive Officer of Union Assurance, Jude Gomes expressed pride in the Company’s performance. He said that despite the difficult economic environment, the Company pursued a proactive strategy that reinforced its standing as a frontrunner in the industry. He thanked the team for this achievement.
According to Mr. Gomes, the Company’s success was driven by several factors. “These include our customer-centric strategy, agility, and seamless new-age digital experience that are transforming Life Insurance in Sri Lanka,” he asserted. He added that the Company will continue to offer innovative solutions that promise more fulfilling lives while empowering the Sri Lankan dream.
The Chief Financial Officer of Union Assurance, Asha Perera said the Company’s proactive strategic financial management proved crucial to its first half performance. She noted that it helped drive growth in key financial indicators compared to the same period last year. “Our financial foundation is strong and stable, and we have efficient management systems and processes in place, ensuring continuous progress,” she emphasized.
She also pointed out that the Company’s profit from operations grew by an impressive 35%, from Rs.387 million to Rs.521 million. Earnings per share rose from Rs. 0.68 to Rs. 0.81.
Over the years, Union Assurance has earned a reputation for its service excellence, best-in-class solutions, and technological capabilities. Its product portfolio expands across health, retirement, education, and investment.
The Company’s trailblazing initiative – the Clicklife digital ecosystem – is transforming the industry. It reimagines traditional Life Insurance and creates a digital native insurance platform for acquiring insurance products, digitising policy servicing and claims interactions, and providing a comprehensive health and lifestyle ecosystem.
The Company’s comprehensive lifestyle app Clicklife revolutionised Life Insurance servicing in Sri Lanka. It enabled customers to easily manage their insurance via mobile phones, anytime and anywhere. The app’s breakthrough ‘Get Fit’ facility enables users to live a healthy lifestyle.
Union Assurance is part of the John Keells Group, one of Sri Lanka’s largest listed conglomerates, and is among the most awarded insurance companies in the country. With an extensive branch network and a workforce of over 3000, the Company continues to invest in people, products, and processes to transform the industry and narrow the protection gap in Sri Lanka.