Despite operating in challenging market conditions, Union Assurance PLC saw growth across a number of key areas for their six months ended June 30, 2022.
The gross written premium(GWP) 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 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.
“These include our customer-centric strategy, agility, and seamless new-age digital experience that are transforming Life Insurance in Sri Lanka,” he asserted. 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.
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