Union Assurance claims growth momentum

Dirk Pereira

Union Assurance (UA) continued to report growth in terms of premium income and profitability. Combined life and non life insurance premiums crossed Rs. 10 billion in 2013 and profit after tax passed the Rs. 1 billion mark as wel, a press release saidl.

‘Life insurance premiums increased by 10% from Rs. 5.1 billion in 2012 to Rs. 5.5 billion in 2013. Non life insurance premiums also grew by 17% from Rs. 4.6 billion to Rs. 5.4 billion over the same period. The life segment reported a profit of Rs. 791 million and the non life segment accounted for the balance profit after tax.

‘As in previous years, several steps have been taken to strengthen UA’s balance sheet. Net assets increased from Rs. 4.3 billion in 2012 to Rs. 5.1 billion in 2013, and the company is well positioned to meet the enhanced capital requirements as per the risk based capital framework proposed by the Insurance Board of Sri Lanka.

"The commitment and innovative spirit of the UA team is evident in the results achieved by the company," noted Dirk Pereira, CEO of Union Assurance. "The future landscape for both life and non life businesses is very bright, and we believe we have the right people, products and brand to reap maximum benefits," he added.

Union Assurance continued to receive accolades for transparency, good governance and excellent business practices both nationally and internationally.

The company’s financial disclosures and corporate governance practices were judged amongst the best in Sri Lanka and the South Asia Region by the Institute of Chartered Accountants of Sri Lanka (ICASL) and the South Asian Federation of Accountants (SAFA) respectively. UA was adjudged the overall winner in ‘Excellence in Performance Management’ and the Gold award winner for ‘Business Excellence’ in the insurance sector at the prestigious National Business Excellence Awards organised by the National Chamber of Commerce.

Initiatives to enhance the UA brand was recognised for the 2nd consecutive year as the company received a silver award in the ‘Service Brand of the Year 2012’ category at the Sri Lanka Institute of Marketing, Brand Excellence Awards ceremony.

www.island.lk

Sri Lanka shares fall to more than 2-wk low; turnover slumps

(Reuters) - Sri Lankan shares fell for a fifth straight session on Friday to their lowest in more than two weeks with turnover slumping to almost a quarter of this year's daily average as investors awaited direction from a U.N. resolution on the island nation's human right records.

Analysts said investor sentiment has been dented on concerns over the U.N. resolution, which could have an impact on the country's economy and many potential buyers in risky assets are staying on the sidelines for want of clear direction.

The main stock index fell 0.3 percent, or 17.71 points to 5,896.23, its lowest close since Feb. 26.

The day's turnover was 251.4 million rupees ($1.92 million), around a quarter of this year's daily average of about 938.9 million rupees.

Analysts said most investors were waiting for direction ahead of voting on the resolution later this month.

Shares of Ceylon Tobacco Company PLC fell 1.03 percent to 1,099.90 rupees, while those of top conglomerate John Keels Holdings Plc fell 1.26 percent to 220.00 rupees.

Foreign investors turned net sellers for the first time in eight sessions. They have sold a net 20.28 million worth of shares on Friday, but were net buyers of 224.9 million rupees worth of shares in the last eight sessions.

However, Sri Lanka has seen net selling in stocks worth 5.2 billion rupees in the last 25 sessions as some offshore funds exited, while net outflows so far in 2014 stand at 3.82 billion rupees, after net inflows of 22.88 billion rupees last year.

Sri Lanka last week hit back at a report by the U.N. human rights chief, questioning the independence of the human rights office of the U.N. after the United States asked it to investigate violations by the Sri Lanka government. 

($1 = 130.7000 Sri Lanka rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Sri Lanka stocks end down 0.3-pct

Mar 14, 2014 (LBO) - Sri Lanka's stocks end lower for the fifth straight day with tobacco and diversified stocks losing ground, brokers said.

The Colombo benchmark All Share Price Index closed 17.71 points lower at 5,896.23 down 0.30 percent. The S&P SL20 closed 15.02 points lower at 3,207.11, down 0.47 percent.

Turnover was 251.77 million rupees, down from 336.48 million rupees a day earlier with 65 stocks close positive against 82 negative.

Foreign investors bought 100.17 million rupees worth shares while selling 120.45 million rupees of shares.

Asiri Surgical closed 90 cents higher at 14.00 rupees, attracting most number of trades during the day.

John Keells Holdings closed 2.80 rupees lower at 220.00 rupees with two off market transactions of 66.10 million rupees contributing to 26 percent of the daily turnover while contributing most to the index drop.

JKH’s W0022 warrants closed 20 cents higher at 62.00 rupees and its W0023 warrants closed 30 cents lower at 64.70 rupees.

Ceylon Tobacco Company closed 28.70 rupees lower at 1,111.30 rupees and Carson Cumberbatch closed 9.70 rupees lower at 340.30 rupees.

Nestle Lanka closed 26.60 rupees lower at 1,973.30 rupees and SLT closed 50 cents higher at 44.50 rupees.

Lion Brewery closed 8.90 rupees higher at 394.00 rupees and Bukit Darah closed 40 cents lower at 544.60 rupees.

George Steuart Finance closed 21.90 rupees higher at 136.90 rupees and HNB closed 1.20 rupees higher at 152.40 rupees.

Arpico Finance to merge with Richard Pieris

To fall in line with Central Bank consolidation plan
H.D.H Senewiratne

Arpico Finance Company PLC that operates as a finance company is now in the process of merging with Richard Pieris and Company. This is with regard to the Central Bank road map for the 2014 on the finance company consolidation plan.

"At present the negotiations are ongoing with regard to this merger with Richard Pieris Company.We need to inform the Central Bank on or before March 31, about this move," Chief Finance Officer, Arpico Finance Chandrin Fernando told the Daily News Business.

He said that still the company engages in accepting public deposits; and providing vehicle leasing and hire purchase services, as well as term loans, consumer durable loans, and gold loans. It also markets real estate home plots and invests in securities.

Arpico Finance Company was incorporated as an associate company of renowned Richard Peiris Group on May 1, 1951 and is the second oldest finance company in Sri Lanka. Central Bank's consolidation process aimed at reducing by half the number of finance companies through mergers and acquisitions and merger of the two main development banks is going on smoothly.

The CB said in a statement that the process would not, in any way, affect current transactions and deposits by customers of banks and finance companies.

Where the rationale of the consolidation was explained to bankers and finance company officials as well as auditors and other concerned parties, the CB also held one-on-one meetings with almost all "boards of directors and senior management of the local banks and finance companies with the expectations of the consolidation process was further clarified and specific issues pertaining to particular institutions were discussed in detail".

The statement said the CB informed the banks and Non Banking Finance Institutions s to approach the consolidation process in a professional manner by seeking specialized IT, Legal, Tax and HR services in order to ensure the objectivity and integrity of the process.

In keeping with the request of the CB, banks and Non Banking Financial Institutes agreed to submit their preliminary proposals by March 31,2014.
 http://www.dailynews.lk

Tourist arrivals up 28.5%

By Mario Andree

Ceylon FT: Tourist arrivals in the first two months of this year increased 28.5% to 288,453 from 224,511 a year earlier. Arrivals in February reached 141,878 up 24.5% from 113,968 recorded in 2013, Sri Lanka Tourism Development Authority data showed.

The government and the hospitality industry expects more than 1.5 million arrivals to support the ambitious goal of 2.5 million arrivals by 2016 to earn more than US$ 2.75 billion foreign exchange.

According to the industry, tourism arrivals to Sri Lanka needs to grow more than 27% annually to reach the government's expectation.

Sri Lanka managed to achieve last year's tourism target after revising data. According to Central Bank Data earnings from the sector increased 35% to US$ 1.4 billion from 1.03 billion.

India led with 35,420 arrivals up 12.9% from 31,367, followed by United Kingdom 27,212 arrivals up 9% from 24,954 and China with 21,098 arrivals up 119% from 9,624 a year earlier.

Overall tourist arrivals for the two months from North America increased 14% to 12,398 from 10,879 with arrivals in February up 4.9% to 5,489 from 5,235, while arrivals from Latin America and the Caribbean increased 51.5% to 759 from 501 with arrival in February up 49.8% to 373 from 249.

Arrivals from Western Europe, still the largest market for Sri Lanka, increased 16.7% to 98,936 from 84,764 with arrival in February up 15.7% to 52,635 from 45,481, while arrivals from Eastern Europe increased 59.6% to 47,764 from 29,929 with arrivals in February up 55.5% to 22,927 from 14,746.

Arrivals from Africa increased 53% to 1,620 from 1,059 with arrivals in February up 53.9 to 745 from 484, while arrivals from the Middle East 12.6% to 11,761 from 10,447 with arrivals in February up 16.8% to 4,919 from 4,212.

Arrivals form East Asia, the third largest market, increased 57.6% to 50,888 from 32,299 with arrivals in February up 31.2% to 25,065 from 19,099, while arrivals from South Asia, the second largest market, increased 18.4% to 54,371 from 45,911 with arrivals in February up 22.9% to 25,979 from 21,137.

Arrivals from Australasia increased 14.1% to 9,956 from 8,722 with arrivals in February up 12.7% to 3,746 from 3,325.

Ceylon FT reported that Sri Lanka Tourism Promotion Bureau last year spent more than Rs 1 billion for several promotional activities in China, India, Russia and France.

The Cabinet last month approved a proposal by the Ministry of Economic Development to conduct a comprehensive 'Global Mega Tourism Promotional Campaign'.
www.ceylontoday.lk

Related News:
Tourist Arrival by Month: 

 http://www.sltda.lk/sites/default/files/Page1Feb14.pdf

Tourist Arrival by Country of Residence: http://www.sltda.lk/sites/default/files/Page2Feb14.pdf

Tourist Arrivals by Region and Top 10 Countries : http://www.sltda.lk/sites/default/files/page3Feb14.pdf

Tourist Arrivals by Miscellaneous Countries: http://www.sltda.lk/sites/default/files/page4Feb14.pdf