Shirajiv Sirimane
The MBSL Insurance Company, which suffered staggering Rs. 214 million losses in 2013 and 2014 had made a remarkable u turn and is on its way to post record profits.
The new Chairman of the Company, said that due to poor management the company suffered Rs. 172 million losses in 2013 and another Rs. 42 million loss in 2014. The irony of this is that the company had posted a Rs. 8.1 million profit in 2012.
Chairman, T. M. S. Nanayakkara, an eminent lawyer said that in addition to bad management there were several bad under writing decisions that led to the bleeding of the company. “After I took over in January, in addition to adopting several meaningful cost cutting measures, we also has a ‘tighter’ and ‘right’ control of paying back claims. I think maintaining tough financial discipline in all sectors was a key to this turn around.”
On the guide line of the Minister of Finance, Ravi Karunanayake several other meaningful steps were also taken to turn around the company.
He said that tough steps were also taken to collect their long standing debts and now they have being able to post a profits of Rs. 6.18 million for last April 2014. “This I think is a remarkable turnaround and the staff too contributed greatly towards this.”
The company which was earlier known as ABC insurance has now set a profit target of Rs. 35 million for 2015 end. “This would be an all time record for the company. But I am sure with more brand awareness and our robust expansions plans, MBSL Insurance should be able to certainly over run this target by a couple of millions”
The Chairman said that they have now put in place a five year corporate plan that also includes regional expansion. “We will add six more branches by the end of this year in strategic places”.
MBSL would soon separate the life and general segments and would also go Public. “We would also go for a new branding and look at introducing several Industry first products soon.”
The MBSL Insurance Company, which suffered staggering Rs. 214 million losses in 2013 and 2014 had made a remarkable u turn and is on its way to post record profits.
The new Chairman of the Company, said that due to poor management the company suffered Rs. 172 million losses in 2013 and another Rs. 42 million loss in 2014. The irony of this is that the company had posted a Rs. 8.1 million profit in 2012.
Chairman, T. M. S. Nanayakkara, an eminent lawyer said that in addition to bad management there were several bad under writing decisions that led to the bleeding of the company. “After I took over in January, in addition to adopting several meaningful cost cutting measures, we also has a ‘tighter’ and ‘right’ control of paying back claims. I think maintaining tough financial discipline in all sectors was a key to this turn around.”
On the guide line of the Minister of Finance, Ravi Karunanayake several other meaningful steps were also taken to turn around the company.
He said that tough steps were also taken to collect their long standing debts and now they have being able to post a profits of Rs. 6.18 million for last April 2014. “This I think is a remarkable turnaround and the staff too contributed greatly towards this.”
The company which was earlier known as ABC insurance has now set a profit target of Rs. 35 million for 2015 end. “This would be an all time record for the company. But I am sure with more brand awareness and our robust expansions plans, MBSL Insurance should be able to certainly over run this target by a couple of millions”
The Chairman said that they have now put in place a five year corporate plan that also includes regional expansion. “We will add six more branches by the end of this year in strategic places”.
MBSL would soon separate the life and general segments and would also go Public. “We would also go for a new branding and look at introducing several Industry first products soon.”
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