Powered by the combined strengths of the John Keells and Carsons Groups, Union Assurance (UA) reported a 63% increase in profit after tax from Rs. 156 million in 2006 to Rs. 254 million in 2007. The company’s turnover grew by 23% over 2006 to Rs. 5 billion in 2007. Both general and life insurance premiums contributed to this growth momentum. The company’s balance sheet was further strengthened with net assets growth of 24% over the previous year.

Both segments of business contributed to the significant increase in profitability. General insurance profit after tax increased from Rs. 83 million in 2006 to Rs. 108 million in 2007, representing an year on year growth of 29%. Profits from the life business nearly doubled from Rs. 76 million in 2006 to Rs. 144 million in 2007.

A first and final dividend of Rs 2.75 per share for the year 2007, has been recommended by the Board of Directors for approval by the shareholders in the forthcoming annual general meeting to be held on 31st March 2008.

"We are pleased with the outcome of our decision to expand the life insurance business and exploit the opportunities in the retail and commercial segments of the general insurance business," noted Chairman, Ajit Gunewardene. He went on to add that "in addition to posting excellent financial results, the company was also able to secure several national and international awards, which reflect the high standards the company has achieved in terms of its business processes, reporting practices and corporate governance, aspects which are vital to build trust and confidence among all stakeholders." He also recognised the contribution of the Insurance Board of Sri Lanka in improving the supervision and regulation of the insurance industry.

Commenting on UA’s performance CEO Marina Tharmaratnam said "The excellent results we have achieved is a direct result of our continuous efforts to improve service standards, enhance distribution capability and brand visibility in our chosen markets and the innovative products we introduced during the year"

During the year, the company launched two innovative life and general insurance products, which could be considered revolutionary in the context of the Sri Lankan insurance industry.

The life insurance product "Union Life Advantage" derived its name from a number of unique product features which were built into the product. The success of the product could be attributed to its simplicity and transparency, enabling potential customers to fully appreciate the premium versus benefits trade off.

"Union Call & Go," arguably the most convenient motor insurance product in the market today was also launched at the same time as "Union Life Advantage." In the event of an accident, policyholders who have purchased this product could log an entry with the 24 hour call center on 011-2428444, obtain a reference number, and drive off.

Union Assurance was recognized both nationally and internationally in 2007. The 2006 annual report was awarded the overall best annual report by both the Institute of Chartered Accountants of Sri Lanka and the South Asian Federation of Accountants. The company was also awarded a National Business Excellence Award in the insurance category from the National Chamber of Commerce in Sri Lanka and won an NCE Exporters award in the category of suppliers and service providers to exporters. Significantly, UA was the only insurance company to be recognized at the NCE Exporters Awards.