Financial Times

Union Assurance Ltd’s (UAL) business expansion initiatives have gathered pace with the opening of a dedicated Motor Centre at No. 99 Dharmapala Mawatha in Colombo and a new branch office in the commercial hub of Kiribathgoda, the company said..

“The expansion of our branch network and motor center was necessitated by the growing demand for the Union Motor policy,” noted Marina Tharmaratnam, CEO.

Union Assurance says it is the only company which offers three convenient claims settlement options to its motor insurance policyholders viz. on-the-scene assessment, with claims settled within 48 hours, or the “Drive in Drive Out” repair option with bills settled direct to the garage or the traditional claims settlement method. In addition, the company has tied up with over 200 garages across the country, to offer customers island wide road side assistance services in the event of a break down or similar inconvenience.

Backed by the combined strengths of the John Keells and Carson Cumberbatch groups, the company posted an impressive 29% growth in turnover, representing healthy increases in both general and life insurance gross written premium.

General insurance premiums increased by 40% from Rs. 920 million in June 2005 to Rs. 1.3 billion in June 2006. Life insurance premiums also increased by 14% from Rs. 670 million in June 2005 to Rs. 767 million in June 2006.

Consolidated profit after taxation as at the half year ended June 2006 amounted to Rs. 50 million, compared with Rs. 71 million reported in the same period last year. The decline in profit was attributed to expansion related expenses.

UAL Chairman, Ajit Gunewardene said that “The results are in line with our strategy to expand and further exploit the retail, commercial and corporate segments of the market.”