Union Assurance Reports Steady Progress in 1st Quarter 2010

Union Assurance reported positive results in both turnover and profits in the 1st quarter of 2010, following the successful launch of the company’s new brand promise.

Total revenue which comprises premiums (net of reinsurance) and investment income from both life and general insurance businesses increased by 17% from Rs. 1.5 billion as at March 2009 to Rs. 1.7 billion as at March 2010. Gross written premium increased by 6% from Rs. 1.5 billion to Rs. 1.6 billion during the same period.

Life insurance premiums reported an impressive growth rate of 23%, growing from Rs. 615 million as at March 2009 to Rs. 758 million as at March 2010. General insurance premiums reported a decline of 6% during the same period.

Profit before tax of Rs. 70 million as at March 2010 was 5% higher than the profit reported as at March 2009. Profit after tax of Rs. 51 million was in line with the profit reported in 2009. The profit figures do not include profits from the life business, which is computed at year end following an independent actuarial valuation.

The UA brand received an AA rating in terms of its “brand power” from Brand Finance (UK). The rating denotes a very strong brand strength which can be leveraged to deliver future revenue streams and exploit growth opportunities.

“We are pleased with the results UA has achieved in the 1st quarter following the brand initiative which was launched at the beginning of the year,” stated Ajit Gunewardene, Chairman of Union Assurance. “We are very positive that the new brand promise, combined with 20 years of heritage, will enable UA to exploit the significant opportunities in the financial services industry in the short to medium term.”

“The results of the 1st quarter reflect our commitment to maintain the growth momentum of our life business, while focusing on improving the profitability of our general insurance business,” concluded Dirk Pereira, CEO of Union Assurance.