Grows profitability and proposes dividend of Rs. 16 per share
The Chairman of Ceylinco Insurance PLC, the biggest player in the country’s insurance industry, has pointed an accusing finger at "alarming price cutting by some companies continuing unabated."
"This type of desperate sales tactic makes customers lose confidence in the business ethics of the insurance industry. It is high time such companies take steps to prevent an erosion of the industry," Ceylinco Chairman Godwin Perera said.
"Another unpleasant trend which surfaced during the year was the enticing of our senior sales persons with offers of high monetary rewards by competitors. We are flattered by the attention paid to our employees by our competitors. If Ceylinco Insurance is to be the training institute for insurance professionals, we will be quite happy to continue to play that role," he added.
Ceylinco Insurance closed the year ended December 31, 2013 by growing its profit before tax 25.37% to Rs.2.3 billion and its company after-tax profit to Rs.2.1 billion, up 28% from a year earlier.
At group level the after-tax profit was up 37% to Rs.2.87 billion with the company profit translating to an earning per share of Rs.80.20 of which Rs.16 has been proposed as a dividend per share to shareholders.
Perera said that Ceylinco had always managed its General and Life businesses as virtually two companies with separate head offices located in separate buildings, separate branches, separate sales force and separate support staff. As such, segregation of these two businesses in accordance with Regulation of Insurance Industry (Amendment Act) would pose no major problems.
He assured shareholders that their interest will be safeguarded and the details of the segregation will be presented to them at an extraordinary general meeting of which due notice will be given at the appropriate time.
Perera said that Ceylinco is very confident that even as two separate companies they will continue to do well providing protection and financial security of the highest quality.
Mr. Ajit Gunawardena, MD/CEO of Ceylinco’s General Insurance Division said that the company has maintained its leading edge in a market place where cutthroat competition was evident. Ceylinco’s General Insurance business has contributed Rs.878 million to the company’s profit with the Life Division contributing Rs.1.24 billion.
He also said that their `On The Spot’ claims settlement remained unique with no competitor able to emulate it.
Gunawardena also referred to the changing weather patterns globally with Sri Lanka too affected. Looking at the potential threat of this emerging phenomenon from an insurer’s perspective, he said that they would be able to face "any catastrophe of any magnitude" adding that they have already made re-insurance arrangements to absorb any such situation.
Mr. R. Renganathan, MD/CEO of the Life Division said that insurance potential in Sri Lanka remained largely untapped despite their best efforts. This represented an opportunity for all players but there were some "who seemed to forget the fundamentals of our business in their search of short-term gains to make their financial statements look more attractive."
Ceylinco had sold 147,091 new Life policies last year averaging 12,257 policies per month – "a respectable effort in the circumstances."
The Life Division’s investment portfolio had grown 14.83% to Rs.50.75 billion. At the end of the year under review, 40% of the portfolio was in government securities, 11% in licensed private banks, 21% in state banks, 10% in real estate, 15% in corporate debt and the balance three percent in other areas.
"As always, these investments are made in conformity with the investment guidelines stipulated under the Regulation of Insurance Industry Act No.43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL)," he said.
During the year under review the Life Division had acquired a stately colonial era mansion at Gower Street, Colombo 5 as a training centre for their staff and sales force. This graceful building was adjacent to the Ceylinco Life Tower and its acquisition was a significant addition to the division’s real estate portfolio.
Ceylinco has a stated capital of Rs.1.32 billion, retained earnings of Rs.10.54 billion, other reserves of Rs.2.4 billion and a re-valuation reserve of Rs.162 billion.
Total assets of the company stood at Rs.88.2 billion and total liabilities at Rs.66.33 billion. At group level total assets were Rs.87.42 billion and total liabilities Rs.69.02 billion.
The Ceylinco share with net assets of Rs.601.40 per share, up from Rs.475.60 the previous year, saw the voting share trading at a high of Rs.1,400 and a low of Rs.850. The non-voting share traded at a high of Rs.430 and a low of Rs.220.
The directors of the company are: Messrs. J.G.P. Perera (Chairman), A.R. Gunawardena (MD/CEO - General Insurance), Mr. R. Renganathan (MD/CEO – Life Insurance), H.D.K.P. Alwis (Deputy CEO – General Insurance), E.T.L. Ranasinghe (Deputy CEO – Life Insurance), Dr. W.C.J. Alwis , P.D.M. Cooray, K.I. Dharmawardena, P.M.B. Fernando, D.H.J. Gunawardena, P.A. Jayawardena, N.D. Nugawela, T.N.M. Peiris, U. Witharana, Gen. C.S. Weerasooriya (Retd) and S.R. Abeynayake.
www.island.lk
The Chairman of Ceylinco Insurance PLC, the biggest player in the country’s insurance industry, has pointed an accusing finger at "alarming price cutting by some companies continuing unabated."
"This type of desperate sales tactic makes customers lose confidence in the business ethics of the insurance industry. It is high time such companies take steps to prevent an erosion of the industry," Ceylinco Chairman Godwin Perera said.
"Another unpleasant trend which surfaced during the year was the enticing of our senior sales persons with offers of high monetary rewards by competitors. We are flattered by the attention paid to our employees by our competitors. If Ceylinco Insurance is to be the training institute for insurance professionals, we will be quite happy to continue to play that role," he added.
Ceylinco Insurance closed the year ended December 31, 2013 by growing its profit before tax 25.37% to Rs.2.3 billion and its company after-tax profit to Rs.2.1 billion, up 28% from a year earlier.
At group level the after-tax profit was up 37% to Rs.2.87 billion with the company profit translating to an earning per share of Rs.80.20 of which Rs.16 has been proposed as a dividend per share to shareholders.
Perera said that Ceylinco had always managed its General and Life businesses as virtually two companies with separate head offices located in separate buildings, separate branches, separate sales force and separate support staff. As such, segregation of these two businesses in accordance with Regulation of Insurance Industry (Amendment Act) would pose no major problems.
He assured shareholders that their interest will be safeguarded and the details of the segregation will be presented to them at an extraordinary general meeting of which due notice will be given at the appropriate time.
Perera said that Ceylinco is very confident that even as two separate companies they will continue to do well providing protection and financial security of the highest quality.
Mr. Ajit Gunawardena, MD/CEO of Ceylinco’s General Insurance Division said that the company has maintained its leading edge in a market place where cutthroat competition was evident. Ceylinco’s General Insurance business has contributed Rs.878 million to the company’s profit with the Life Division contributing Rs.1.24 billion.
He also said that their `On The Spot’ claims settlement remained unique with no competitor able to emulate it.
Gunawardena also referred to the changing weather patterns globally with Sri Lanka too affected. Looking at the potential threat of this emerging phenomenon from an insurer’s perspective, he said that they would be able to face "any catastrophe of any magnitude" adding that they have already made re-insurance arrangements to absorb any such situation.
Mr. R. Renganathan, MD/CEO of the Life Division said that insurance potential in Sri Lanka remained largely untapped despite their best efforts. This represented an opportunity for all players but there were some "who seemed to forget the fundamentals of our business in their search of short-term gains to make their financial statements look more attractive."
Ceylinco had sold 147,091 new Life policies last year averaging 12,257 policies per month – "a respectable effort in the circumstances."
The Life Division’s investment portfolio had grown 14.83% to Rs.50.75 billion. At the end of the year under review, 40% of the portfolio was in government securities, 11% in licensed private banks, 21% in state banks, 10% in real estate, 15% in corporate debt and the balance three percent in other areas.
"As always, these investments are made in conformity with the investment guidelines stipulated under the Regulation of Insurance Industry Act No.43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL)," he said.
During the year under review the Life Division had acquired a stately colonial era mansion at Gower Street, Colombo 5 as a training centre for their staff and sales force. This graceful building was adjacent to the Ceylinco Life Tower and its acquisition was a significant addition to the division’s real estate portfolio.
Ceylinco has a stated capital of Rs.1.32 billion, retained earnings of Rs.10.54 billion, other reserves of Rs.2.4 billion and a re-valuation reserve of Rs.162 billion.
Total assets of the company stood at Rs.88.2 billion and total liabilities at Rs.66.33 billion. At group level total assets were Rs.87.42 billion and total liabilities Rs.69.02 billion.
The Ceylinco share with net assets of Rs.601.40 per share, up from Rs.475.60 the previous year, saw the voting share trading at a high of Rs.1,400 and a low of Rs.850. The non-voting share traded at a high of Rs.430 and a low of Rs.220.
The directors of the company are: Messrs. J.G.P. Perera (Chairman), A.R. Gunawardena (MD/CEO - General Insurance), Mr. R. Renganathan (MD/CEO – Life Insurance), H.D.K.P. Alwis (Deputy CEO – General Insurance), E.T.L. Ranasinghe (Deputy CEO – Life Insurance), Dr. W.C.J. Alwis , P.D.M. Cooray, K.I. Dharmawardena, P.M.B. Fernando, D.H.J. Gunawardena, P.A. Jayawardena, N.D. Nugawela, T.N.M. Peiris, U. Witharana, Gen. C.S. Weerasooriya (Retd) and S.R. Abeynayake.
www.island.lk
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