Customers the key beneficiaries of financial strength of Ceylinco Life – R. Renganathan
View(s):The Life Fund of Ceylinco Life, Sri Lanka’s market leader in the field of life insurance, surpassed Rs 50 billion in August this year, on the back of strong operational performance and the company’s investment strategies. In this interview sent as a media statement, the company’s Managing Director/CEO R. Renganathan speaks on what this means for policyholders.
Excerpts:
Q: Ceylinco Life recently announced that its Life Fund had topped Rs 50 billion. What is the significance of this?
A: The size of an insurance company’s Life Fund signifies its financial strength. Surpassing Rs 50 billion is an important milestone for Ceylinco Life, especially in the context that this was achieved in the company’s 25th year of operation. These are policyholders’ funds, invested prudently by the company targeting equitable growth with minimal risk.
Q: What is the growth recorded by your Life Fund this year?
A: Our Life Fund stood at Rs 45.11 billion at the end of 2012, achieving 18 per cent growth in the last financial year. For the first eight months of 2013, Ceylinco Life has transferred Rs 5.439 billion to the Life Fund, taking it to Rs 50.549 billion by the end of August, which is a 12 per cent growth even before the end of the third quarter.
Q: What does the financial strength of the company mean to policyholders?
A: Firstly, it means that they and their loved ones are protected by a financially strong and stable insurance company, one that is capable of meeting all its obligations, when the need arises. This is a particularly important consideration when one sees the number of financial companies that are failing not only in Sri Lanka but around the world.
Q: On bonus payments and claims settlement?
A: We paid cash bonuses for the 10th consecutive year in April 2013. The number of policyholders benefitted was nearly 10,000, and the value of the cash bonuses was Rs 31.7 million. The cumulative value of cash bonuses paid over the past 10 years is Rs.256.6 million.
Q: How has Ceylinco Life performed financially, during this period?
A: According to our figures up to 31st August 2013, Gross Written Premium Income grew by more than 9 per cent to Rs 7.372 billion, and investment and other income improved by 45.5 per cent to Rs 4.088 billion, taking our total income to Rs 11.3 billion. Our investments portfolio increased by a healthy 16.4 per cent in value to Rs 51.4 billion, and total assets exceeded Rs 62.3 billion with a year-to-date growth of 17.4 per cent.
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