14 December 2021 07:07 am Views - 688
| Susil Weerasekera |
| Wasantha Ranasinghe
|
Leading Sri Lankan insurer Co-operative Insurance recently announced the date of its initial public offering (IPO), which is set to take place on December 20, 2021.
The IPO will be managed by Merchant Bank of Sri Lanka.
Affirming its financial strength, the company, which secured a strong financial performance for the past year, was able to grow its net earned premium (NEP) by an impressive 5 percent in a challenging, economically-crippling environment, impacted by the COVID-19 pandemic, to post a profit of Rs.695 million for the fiscal year 2020, up by a commendable 155 percent from the year before. This enabled it to make an indelible mark as one among the top 10 insurance companies in the country, affirming the success of the company’s vision of delivering unparalleled insurance solutions and services to all Sri Lankans across the island.
“This IPO is an important milestone for Co-operative Insurance and is a firm testament to the continued dedication and passion of our staff and the firm loyalty of our clientele.
Our steady, undeterred performance continued to demonstrate stability and resilience during a period that was characterised by numerous restrictions forced into play by the global pandemic. Right now, we are bullish of what Co-operative Insurance can achieve during our IPO and in turn how it will help elevate our portfolio in 2022,” Co-operative Insurance Chairman Susil Weerasekera said.
In the past year, Co-operative Insurance’s (general) market share increased to 4.42 percent, in comparison to 4.27 percent as in 2019. (ircsl.gov.lk, 2020) Compared to the general insurance industry GWP growth, which was -2.24 percent during the past year, the company recorded a GWP growth of 2 percent. The company reported a five-year average annual GWP growth rate of 21 percent of GWP, while the general insurance industry five-year GWP average annual growth was at 8.95 percent.
Co-operative Insurance also notes that its contribution to increasing general insurance penetration in the country has increased during 2020, with 945,743 policies issued by CICL. Profit after tax (PAT) for 2020 rose to Rs.695 million, an increase of 155 percent YoY. Profit before tax (PBT) grew by 120 percent compared to previous year to stand at Rs. 940 million.
“We are delighted to announce that our IPO will take place on December 20, 2021, following a strong financial performance this past year. Our robust cost management initiatives, proactive drive to innovate, digital-first process re-engineering efforts and most importantly the strength of our passionate and deeply dedicated team have helped propel Co-operative Insurance to an elite league of top insurance providers within the country. I believe these traits have helped prepare us for this IPO and continue to offer unparalleled standards of insurance to people from all different backgrounds across Sri Lanka,” remarked Co-operative Insurance Managing Director Wasantha Ranasinghe.
Established in 1999, with the aim of taking the concept of insurance beyond the borders of urban and suburban Sri Lanka, Co-operative Insurance operates the third largest branch network amongst all local insurance companies today. Rooted in a strong foundation of excellence in customer service, progressive work culture, enriched experience, consistent commitment to innovation and an equal measure of heart, the company was the first in the country to introduce flexible insurance solutions to suit the large portion of motorcycle and three-wheeler owners located across rural Sri Lanka.
Further affirming its financial strength, the company was awarded a Fitch Rating of BBB+ Positive outlook over the past few years. The strategic expertise of its management and its proven financial stability have enabled the company to continue to deliver dividends higher than the general Weighed Average Treasure Bill Rate.
One of the major factors influencing the company’s resilience since 2015 was its significant investment in technology to both upgrade and streamline processes to better equip its employees and customers to access the Co-operative Insurance’s diverse portfolio. As a result, customers were afforded the convenient opportunity to obtain motor insurance policies by visiting its www.ci.lk website. This not only fortified the company’s service portfolio to outperform its competitors but strengthened its positioning as an insurance company of the people.