|Wednesday, 26 November 2003|
Ceylinco Life reports record income growth in first nine months of 2003
Ceylinco Life, a leading life Insurance company in the country has achieved record-breaking results in the first nine months of 2003, with a healthy 32 per cent growth in premium income.
In results released this week, the company reported that premium income had reached Rs. 2.24 billion as at September 30,2003, reflecting a substantial growth of 32 per cent over the corresponding period last year.
This was made possible by the sale of over 57,000 new policies in the period under review, at an average of more than 7,200 new policies a month. Based on industry estimates, this is the highest number of individual life policies sold by any insurer in Sri Lanka, the company said.
The company's Life Fund stood at Rs. 8.5 billion at the end of the third quarter, more than Rs. 2,000 million higher than its closest counterpart among insurance companies of private sector origin.
"We are very satisfied with these results," Ceylinco Life Director/ General Manager R. Renganathan said. "They show that Ceylinco Life retains its position as the fastest growing life insurer in its segment of the market."
He said the company's performance was particularly noteworthy, as the number of new policies sold in the nine-month period and the premium income has reached 95 per cent of the aggregate for 2002. "Clearly, we are set to post record year-end figures this year," Renganathan said.
The company's focus on making insurance accessible to the masses through an extensive islandwide branch network had paid dividends, he noted.
Six new branches were opened in the nine months under review, bringing Ceylinco Life's branch network to 85 making it the largest insurance network in the country. "This network, which is now fully computer linked, combined with the innovative policies that we continue to develop and evolve to suit market needs, Ceylinco Life's close interaction with the community through an extensive scheme of rewards, and our highly trained and motivated sales team, are what make us the benchmark company in the life insurance sector," Ceylinco Life's Director Thushara Ranasinghe said.
He said that maturities and advance payments in the period under review totalled Rs. 392.9 million, an increase of 105 per cent over the corresponding period last year, while claims paid had also increased by 72 per cent to Rs. 87.6 million at the end of the third quarter of 2003, as forecasted.
Ceylinco Life disbursed a record Rs. 330 million as bonuses to more than 133,000 policyholders in the period under review.
These payments followed the results of an actuarial valuation of the company's Life Fund as at end 2002, which showed that Ceylinco Life's solvency margin was more than three times the minimum level required by statute.
In the area of IT, Ceylinco Life and Sri Lanka Telecom (SLT) entered into an agreement under which SLT linked Ceylinco Life's islandwide branch network using the latest IP/VPN (Internet Protocol/Virtual Private Network) technology.
This resulted in the establishment of a seamless, real-time secure voice and data transmission facility that brought all branches and the company's head office in Colombo into a fully-meshed managed communications network for greater efficiency, enhanced customer convenience, even speedier service and cost savings.
Produced by Lake House