Union Assurance, Sri Lanka’s premier life insurer, proudly announces its strong financial performance for the first quarter of 2023. Despite operating in a challenging environment, the Company’s remarkable growth across all key performance indicators demonstrates its firm commitment to delivering value to its stakeholders.
Union Assurance witnessed a 117% increase in profit before tax, soaring from Rs. 279 in the first quarter of 2022 to an impressive Rs. 605 million in the first quarter of 2023. This significant growth underscores the Company’s strategic prowess and ability to capitalize on market opportunities. In tandem, total net revenue rose by a remarkable 37%, increasing from Rs. 4.7 billion in the corresponding period of 2022 to Rs. 6.5 billion in the first quarter of 2023, exemplifying Union Assurance’s resilience and unwavering focus on sustainable growth. Union Assurance’s net investment income also exhibited robust growth, ascending from Rs. 1.4 billion in the corresponding period of 2022 to Rs. 2.4 billion, demonstrating the Company’s expertise in managing investments and its ability to deliver superior returns to policyholders and shareholders. Furthermore, both gross written premium and net written premium experienced growth compared to the corresponding period in 2022, with the former increasing from Rs. 3.9 billion to Rs. 4.2 billion, and the latter rising from Rs. 3.8 billion to Rs. 3.9 billion. Moreover, the Company’s steadfast financial performance was evidenced by its notable growth of 4.8% in gross written premium, outpacing the industry average in the first quarter of 2023. Market capitalization also recorded a growth of 18% to Rs. 19.4 billion from Rs. 16.4 billion as at 31 December 2022. The Company’s assurance to meet its obligations was demonstrated by honoring claims worth Rs. 1.6 billion, compared to Rs. 1.4 billion during the corresponding period of the previous year.
Union Assurance’s success was further accentuated by its impressive operational performance. The profit from operations increased by an impressive 122% over the corresponding period of the previous year, growing from Rs. 240 million to Rs. 534 million. Earnings per share witnessed an increase of 105% from the corresponding period, rising from Rs. 0.37 to Rs. 0.75, further enhancing shareholder value. The Company’s total assets reached Rs. 79 billion at the end of March 2023, up from Rs. 76 billion at the end of 2022. Capital adequacy ratio was 245% as of March end, which was well above the minimum regulatory requirement. Additionally, the life insurance fund stood at Rs. 57.3 billion reflecting the strong financial foundation.
In addition to its stellar financial performance, the Company’s focus on digital transformation has positioned Union Assurance at the forefront of the industry, driving innovation and setting new industry standards. The ground-breaking Clicklife App has continued to transform customer experiences by providing a comprehensive and truly seamless ecosystem that empowers customers to protect themselves and their lifestyles. Moreover, Union Assurance’s forward-thinking ethos continues to drive the company, with 90% of claims settled in one day, 100% paperless insurance proposal submission, and an efficient digital distribution strategy.
Chief Executive Officer of Union Assurance, Jude Gomes, expressed his pride in the Company’s outstanding performance, stating, “Our exceptional performance in the first quarter of 2023 reflects the culmination of our perseverance in delivering sustainable value and financial security to our customers and stakeholders. Our remarkable growth is a testament to our strong market position and our ability to seize opportunities in a rapidly evolving industry. We remain focused on our strategic pillars, including innovation, operational excellence, and customer-centricity, which continue to propel us forward.”
“Our digital transformation journey has been instrumental in making life insurance more accessible and engaging for our customers. We are passionate about leveraging cutting-edge technology to revolutionize the life insurance experience in Sri Lanka. By embracing digital innovation, we are unlocking new possibilities for our customers, and we will continue to deliver unparalleled experiences in the future,” he further stated.
Deputy Chief Executive Officer of Union Assurance, Senath Jayatilake, also shared his thoughts, stating, “We are immensely grateful to our valued customers for their trust and confidence in Union Assurance. Their support has been instrumental in our remarkable performance in the first quarter of 2023. I would also like to express my appreciation to our dedicated team, whose brilliant performance has been instrumental in achieving our outstanding results. Their hard work, expertise, and dedication have been the driving force behind our success,” he added.
“At Union Assurance, we are committed to closing the protection gap in our country and ensuring that individuals and families have access to the financial security they deserve. We understand the importance of safeguarding what matters most, and we provide comprehensive protection solutions that meet the diverse needs of our customers. Our mission to empower Sri Lankans with financial safety nets allowing them to pursue their dreams remains at the forefront of our agenda, and we remain steadfast in delivering on this.”
Union Assurance is a subsidiary of John Keells Group, one of Sri Lanka’s largest listed conglomerates. With a product portfolio that expands across protection, investment, retirement, health, and education, it is among the most awarded life insurance companies in Sri Lanka, with over 15 major awards and accolades from both global and local bodies, including being named one of Sri Lanka’s Most Loved Brands in 2022. Having an island-wide branch network and an over 4,000-strong workforce, the Company is dedicated to breaking ground and offering new-age insurance experiences to its customers.