Union Assurance (UA) reported steady progress in the life insurance business, reporting 9% growth in gross written premium compared with the previous year.
Income generated from investments has increased significantly by 13% to Rs. 3,036 million for the reporting period. Expenses though high compared to corresponding previous year was spent in line with a business plan to strengthen the long-term prospects of the business.
Profit after tax amounted to Rs. 2,242 million compared with 267 million in 2017. With the introduction of the new tax base in terms of Section 67 of the Inland Revenue Act No. 24 of 2017, UA will have taxable income from the year ending 31 December 2018, enabling the company to claim its brought forward tax losses against its taxable income within a period of 6 years.
Accordingly, during the quarter under review a deferred tax asset amounting to Rs. 1,532 million arising from brought forward tax losses as at December 31,2017 has been recognized.
Profit up to the third quarter does not include a surplus from the life business which is actuarial valued at year end.
As at September 30, 2018, UA’s life fund stood at Rs 31 billion with a healthy solvency ratio indicating the financial strength of the business.
Income generated from investments has increased significantly by 13% to Rs. 3,036 million for the reporting period. Expenses though high compared to corresponding previous year was spent in line with a business plan to strengthen the long-term prospects of the business.
Profit after tax amounted to Rs. 2,242 million compared with 267 million in 2017. With the introduction of the new tax base in terms of Section 67 of the Inland Revenue Act No. 24 of 2017, UA will have taxable income from the year ending 31 December 2018, enabling the company to claim its brought forward tax losses against its taxable income within a period of 6 years.
Accordingly, during the quarter under review a deferred tax asset amounting to Rs. 1,532 million arising from brought forward tax losses as at December 31,2017 has been recognized.
Profit up to the third quarter does not include a surplus from the life business which is actuarial valued at year end.
As at September 30, 2018, UA’s life fund stood at Rs 31 billion with a healthy solvency ratio indicating the financial strength of the business.
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