Union Assurance Records Unprecedented Growth in 2021
With a remarkable financial performance in 2021, Union Assurance has bolstered its position as a trailblazing life insurer in Sri Lanka. The Company has achieved unparalleled growth in several key areas. It recorded the highest regular new business growth among the top 5 industry players, with a growth of 42% compared to the industry average of 29%. Union Assurance was also the second largest regular new business producer in the entire industry. Moreover, in 2021 the Company produced 300 qualifiers in the Million Dollar Round Table (MDRT) – the highest in the history of Sri Lanka’s life insurance industry. All this was achieved despite 2021 being a very challenging year as a result of the economic and social impact of the COVID-19 pandemic.
The Chief Executive Officer, Jude Gomes expressed much pride in the Company’s performance. He attributed their success to a proactive strategy that is transforming Life Insurance in Sri Lanka. “Our strong performance is a result of driving a customer-centric strategy, agility, and seamless digital experience, offering policyholders innovative solutions that promise more fulfilling lives while empowering the Sri Lankan dream,” he said.
Mr. Gomes acknowledged those who contributed to the Company’s success including their staff, agents, advisors, and other key stakeholders. “We thank our customers for driving us to such great heights through their patronage and unwavering trust in us,” he said. He added that the Company’s achievements and milestones have laid the foundation for unrelenting growth in the future. This would help close the protection gap and empower the lives of Sri Lankans.
Union Assurance achieved several key milestones in 2021. Gross written premium (GWP) exceeded Rs. 15 billion, a notable increase over the previous year’s figure of Rs.13 billion, while regular new business premiums rose from Rs.3.1 billion to Rs.4.4 billion. Investment income during the year surpassed Rs.5 billion. Total net income increased from Rs.17.4 billion to Rs. 20.6 billion, while the net cash flow from operating activities rose from Rs.8.3 billion to Rs.9.3 billion.
“We achieved a significant growth in profitability,” said the Chief Financial Officer of Union Assurance, Asha Perera. She noted that profit before tax rose by 46% from Rs.1.8 billion in 2020 to Rs.2.6 billion in 2021, while profit after tax increased from Rs. 921 million to Rs.2.1 billion – an exceptional growth of 123% supported by the growth in GWP, growth in net investment income, efficient management of expenses and process improvements.
Showcasing financial stability, the Company’s asset base grew by 13% over the year to consolidate at Rs. 71 billion compared to the previous year’s value of Rs. 63 billion. Assets under management reached an impressive Rs. 59 billion, compared to Rs. 52 billion the year before, whilst shareholder equity reached Rs.15.4 billion, further strengthening the financial position of the Company.
Exceptional growth was also seen in the Life Fund of Union Assurance. It rose significantly from Rs. 42.9 billion to Rs. 49.8 billion in line with the growth in the Life Insurance portfolio. In accordance with the Company’s promise despite challenging times, a policyholder dividend rate of 8% was declared for the year 2021. Also keeping its commitment to shareholders, a healthy shareholder dividend of Rs. 22 per share was declared as first and final dividend for 2021.
Union Assurance also became the country’s leading bancassurance provider, surpassing Rs.1 billion ANBP. It achieved the highest number of bancassurance partnerships, paving the way for sustainable business growth.
The Company’s pioneering initiative – the Clicklife digital ecosystem – will usher in revolutionary technological changes in 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.
Union Assurance has also invested heavily in its culture of people development. There is much emphasis on developing the best talent and ensuring their career growth, which has driven the Company’s success.
As part of the John Keells Group, Union Assurance is poised to push the boundaries of the insurance industry in Sri Lanka. The Company will continue to focus on diversifying its distribution channels, optimizing bancassurance partnerships, developing innovative insurance solutions and enhancing its revolutionary digital technologies.
