42.3% increase in UAL’s net income

Union Assurance Ltd., (UAL) announced a significant increase of 42.3% in consolidated net income, from Rs. 103.4 million in 1999 to Rs. 147.1 million in 2000, a press release said.

The Chairman of UAL, Ratna Sivaratnam, commenting on the company’s results said: "I am pleased with our performance. We have developed platform that positions us to make best use of the opportunities that will emerge over the next few years."

One of the areas of strategic focus for UAL is to exploit the opportunities available in the Life Insurance Business. During the year, the Company took steps to further strengthen the Life Fund. This has resulted, in a "re-statement" of the profits of previous years. An effort has been made during 2000 to put in place a "solid infrastructure" to position the Company to achieve profitable growth in Life Business in the future.

All other financial performance indicators showed "dramatic" improvements year over year, Return on Equity increased from 17.7% to 22.3%, net assets increased by 12.8%, from Rs. 584.2 million to Rs. 659.2 million and the company’s overall efficiency ratio (cost to income ratio) decreased from 25.6% to 23.7%.

"We have been guided by simple but sensible principles, that is, to build a solid foundation and focus on quality and service not quantity. This has meant developing human resource skills and staying focused on our client needs. We are making outstanding progress with very good results," declared CEO Sarath Wikramanayake.

Total revenue for the year of Rs. 1.72 billion represented a growth of 14.9% from the previous year. This growth is commendable when considering the intense competition in the insurance industry and the state of the economy. Expenses during this period from all operations of the company grew by only 6.4% to Rs. 407.5 million. The company stated that this significant achievement in containing costs was as a result of the UAL team working "smarter."

UAL surpassed two milestones in 2000; both the gross premium earned from General Insurance business and the value of the Life Fund exceeded the Rs. 1 billion mark.

UAL’s Board Comprises R. Sivaratnam (Chairman). H. Selvanathan (Deputy Chairman), V. Lintotawela and H. A. Rehmanjee (Directors and R. F. V. Casie Chetty, D. C. R. Gunawardena and A. D. Gunawardena as alternate Directors.