"We no longer belong to the Ceylinco Group. Yes, at one time we were and proud of it but now Ceylinco Insurance stands alone, stable, strong, safe and secure depending on no one," Godwin Perera, Marketing Consultant for Ceylinco Insurance told journalists last afternoon.

Ceylinco Insurance PLC, comprising Ceylinco Insurance-General and Ceylinco Insurance-Life, recorded a 14.8 percent decline in gross written premium income of Rs. 16.6 billion in 2009 from Rs. 19.5 billion the previous year but then the entire insurance industry suffered due to tough times in 2009 caused by the economic crisis.

The overall gross written premium incomes of the 18 insurance companies registered with the Insurance Board of Sri Lanka registered a slight decline of 0.42 percent to Rs. 57.9 billion from Rs. 58.1 billion in 2008.

Ajith Gunawardena, Joint Deputy Chairman, Ceylinco Insurance-General, said the crisis that hit the parent company, Ceylinco Consolidated, also affected premium incomes. "About 60 percent of the business we lost in 2009 was from the other companies of the Ceylinco Group, which were either bought over or went underground," he said.

Perera, Gunawardena and R. Renganathan, Joint Deputy Director Ceylinco Insurance-Life, told journalists that the company experienced the ‘worst storm’ or financial sector crisis in the country’s history.

"2009 tested every aspect of the company including the trust of our policyholders, but we passed with flying-colours," Renganathan said.

Perera compared the company’s financial performance in 2009 with that of 2008, considered to be ‘good year’.

Total assets of Ceylinco Insurance grew by 10.1 percent to Rs. 41.3 billion in 2009 from 37.5 billion in 2008. Income from investments grew by 20.6 percent to Rs. 3.5 billion from Rs. 2.9 billion.

Net value of claims paid increased in 2009 by 7.3 percent from Rs. 6.8 billion in 2008 to Rs. 7.3 billion in 2009 and Perera said this was very important. "We had to honour our policy holders’ trust," he said.

Solvency ratios (net assets/premium income) as stipulated by the Insurance Board of Sri Lanka exceeded 2008 levels. The solvency ratio for Ceylinco-General improved to two times from 1.4 times the previous year, while Ceylinco-Life’s solvency ratio improved to eight timed from 5 times the previous year.

Profit before tax increased by 28 percent during the year to Rs. 939.6 million from Rs. 732.3 million recoded in the ‘good year’ 2008.

The company’s share value has also grown by 4,230 percent since 1987 when Ceylinco Insurance was listed on the Colombo Stock Exchange. Perera said Rs. 1,000 worth of shares in 1982 would now be worth Rs. 43,300.