In Sri Lanka We Believe

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In Sri Lanka We Believe In Sri Lanka We Believe. Celebrating 25 years of Ceylinco Insurance PLC with a history going back to 1939 This is Our Strength The Strength of Sri Lanka. CEYLINCO INSURANCE PLC Annual Report 2012 THE NATIONAL FLAG OF SRI LANKA Ceylinco Insurance PLC takes pride in presenting the National Flag of Sri Lanka on the cover of our annual report this year - a true representation of the national pride and unity we believe in. Each element of the flag and its colours has a distinct meaning; collectively representing a multi-ethnic, multi-cultural Sri Lanka. Strength of Sri Lanka At Ceylinco Insurance we have always been proud of our pedigree, our heritage and our constantly re-affirmed position as the Sri Lankan insurer of choice. Our faith in the pride and potential of Sri Lanka has always been the strength behind the work we do every day. Today we celebrate twenty five years in business as Ceylinco Insurance PLC. Yet our history can be traced as far back as 1939, when the Company was originally registered as The Ceylon Insurance Company, which was in fact, the first Ceylonese Company ever registered. This is our strength. The strength of Sri Lanka. CEYLINCO INSURANCE PLC 2 Annual Report 2012 Contents Mission Corporate Information 3 Our Mission is to provide protection and Financial Highlights 4 - 5 financial security of the highest quality to Our Journey 1987 – 2012 6 - 7 society, whilst adding to shareholders’ wealth Chairman’s Review 8 - 11 and recognising, rewarding and valuing the Review of the Managing Director / dignity of our staff. Chief Executive Officer (General Insurance) 12 - 16 Review of the Managing Director / Chief Executive Officer (Life Insurance) 17 - 20 Customer Testimonials 21 - 22 Corporate Management Discussion & Analysis 23 - 28 Sustainability Report 29 - 35 Goals Corporate Social Responsibility 36 - 37 Enterprise Risk Management - General 38 - 41 To provide an attractive return on investment Enterprise Risk Management - Life 42 - 46 to the shareholders, whilst retaining Branch Network 47 - 48 adequate funds for growth and to achieve a The Year’s Events – General 49 - 51 high degree of stability which would enable The Year’s Events – Life 52 - 54 us to hold true to our mission in all business Reinsurance Arrangements 55 conditions. Board of Directors 56 - 63 Corporate Governance 64 - 67 To be a leading provider of protection and Report of the Board Audit Committee 68 - 69 financial security in Sri Lanka and selected Report of the Remuneration Committee 70 international markets. Investment Committee Report - General 71 - 72 Investment Committee Report - Life 73 - 74 To develop highly satisfied and motivated Statement of Directors' Responsibility 75 employees at all levels, who will contribute Corporate Management - General 76 - 77 effectively and efficiently towards achieving Corporate Management – Life 78 - 79 the overall objectives of the Company. Management Staff – General 80 - 81 To contribute to the economic development Management Staff - Life 82 - 83 of Sri Lanka and enhance the quality of life of Management Staff 84 - 88 Financial Information 89 its people. Financial Statements 90 - 177 Quarterly Analysis 2012 178 Quarterly Analysis 2011 179 Ten Year Summary 180 - 181 Notice of Meeting 182 Glossary of Financial & Insurance Terms 183 - 185 Notes 186 CEYLINCO INSURANCE PLC Annual Report 2012 3 Corporate Information Registered Office Consulting Actuaries Mr. D.H.J. Gunawardena F.C.M.A. (U.K.) “Ceylinco House” Life Insurance (“Independent” Non - Executive Director) No. 69, Janadhipathi Mawatha, Towers Watson Risk Consulting Pte. Mr. P.A. Jayawardena F.C.A., F.C.M.A., Colombo 1, Sri Lanka. Limited, F.M.A.A.T. (S.L.) No. 135, Cecil Street, - Director / Chief Financial Officer Company Registration Number #09-01, Singapore 069536. (Life Insurance) PQ 24 (Executive Director) General Insurance Legal Form M/s. K. A. Pandit Mr. N.D. Nugawela F.C.I.C. A Quoted Public Company with limited Consultants & Actuaries, - Director / Chief Operations Officer liability, incorporated in Sri Lanka in 1987. 2nd. Floor - “Churchgate House”, (General Insurance) Licensed as a Company authorized to Veer Nariman Road, (Executive Director) carry on insurance business, under the Fort, Mumbai - 400 001, India. Mr. T.N.M. Peiris B.A. (Econ.) (Hons.), F.C.A., Control of Insurance Act No. 25 of 1962 as F.C.M.A., F.C.I.C. amended by Act No. 42 of 1986 (Presently Board of Directors - Director (Finance) / Head of Finance replaced by Regulation of Insurance Mr. J.G.P. Perera Pg. Dip. M.CIM. (U.K.), (Executive Director) F.C.I.M. (U.K.) Industry Act No. 43 of 2000). - Chairman Mr. D.W.P. Upali A.C.A., M.B.A., F.C.M.A. Main Place of Business (Non-Executive Director) - Director / Chief Financial Officer (General Insurance) Life Insurance Mr. A.R. Gunawardena F.C.I.C. (Executive Director) “Ceylinco Life Tower”, - Managing Director / Chief Executive Officer No. 106, Havelock Road, (General Insurance) Gen. C.S. Weerasooriya (Retd.) Colombo 5, Sri Lanka. (Executive Director) (“Independent” Non-Executive Director) Telephone : 2461000 Mr. S.R. Abeynayake F.C.A., M.B.A. (Sri J.), Mr. R. Renganathan F.C.A., F.C.M.A. Call Centre : 2461461 (Hotline) - Managing Director / Chief Executive Officer F.C.M.A. Fax : 2437613, 2555959 (Life Insurance) - Director / Deputy Chief Financial E-mail : [email protected] (Executive Director) Officer (Life Insurance) Website : www.ceylincolife.com (Executive Director) Mr. H.D.K.P. Alwis F.C.I.C. Main Place of Business - Director / Deputy Chief Executive Officer (General Insurance) General Insurance Company Secretary (Executive Director) “Ceylinco House”, Mrs. T.N. Jasenth uliyana F.C.I.S. (U.K.), No. 69, Janadhipathi Mawatha, Mr. E.T.L. Ranasinghe M.B.A., Dip.M., F.C.P.M., F.C.C.S. Colombo 1, Sri Lanka. F.C.I.M. (U.K.), Chartered Marketer Bankers Telephone : 2485757-9 - Director / Deputy Chief Executive Officer Bank of Ceylon Call Centre : 2393939 (Life Insurance) (Executive Director) Fax : 2485701 Commercial Bank of Ceylon PLC E-mail : [email protected] Dr. W.C.J. Alwis B.Sc., F.I.I.I., F.C.I.I. (Lond.), Deutsche Bank AG (Custodian Bank) Website : www.ceylinco-insurance.com F.I.o.D. (U.K.) DFCC Vardhana Bank - Director (Technical) / Chief Technical Officer Hatton National Bank PLC The Stock Exchange Listing (Executive Director) Hongkong & Shanghai Banking The Ordinary Shares (Voting and Non Mr. P.D.M. Cooray LUTCF (U.S.A.), C.I.A.M., Corporation Ltd. Voting) of the Company are listed with the C.I.I. (AWARD) National Savings Bank Colombo Stock Exchange of Sri Lanka. - Director / Head of Human Resources & Nations Trust Bank PLC Principal Activities Training (Life Insurance) NDB Bank PLC (Executive Director) Underwriting all classes of General Pan Asia Banking Corporation PLC Insurance and Life Insurance. Mr. K.I. Dharmawardena Attorney-at- Law People’s Bank (“Independent” Non - Executive Director) Sampath Bank PLC Auditors Seylan Bank PLC Ernst & Young, Mr. P.M.B. Fernando F.C.P.M., Dip. Elect. Eng., Dip. Comp. System Design, Standard Chartered Bank Chartered Accountants, Dip. Bus. Mgmnt., Dip. Mkt. Mgmnt. Union Bank of Colombo Limited No. 201, De Saram Place, - Director / Chief Information Officer Colombo 10. (General Insurance) (Executive Director) CEYLINCO INSURANCE PLC 4 Annual Report 2012 Financial Highlights Company Results for the year 2012 2011 Rs.'000 Rs.'000 Change % Gross Written Premium 21,923,053 19,875,117 10.30 Net Claims / Net Benefits (Excluding increase in Life Fund) 8,547,309 7,422,040 15.16 Increase in Life Insurance Fund 6,765,658 6,335,332 6.79 Investments and Other Income 5,856,407 4,926,589 18.87 Profit before Taxation 1,803,098 1,454,042 24.01 Profit after Taxation 1,653,249 1,335,495 23.79 Position at the year end Shareholders' Funds 12,562,810 10,933,192 14.91 Life Insurance Funds 45,110,789 38,203,473 18.08 Non-Life Insurance Contract Liabilities 7,561,631 6,975,423 8.40 Investments 52,188,557 47,958,148 8.82 Total Assets 68,978,544 63,138,484 9.25 Market capitalisation (Rs. Mn) 19,238 17,134 12.28 Rs. Rs. Per Ordinary Share Earnings (Basic) 62.59 50.56 Dividends - Interim paid - - - Proposed 12.50 6.50 Net Assets (Shareholders' Equity) 475.60 413.91 Market Value at the year end - voting 855.90 746.70 Market Value at the year end - non voting 330.50 343.00 Ratios Return on Total Assets % (Shareholders') 8.7 8.1 Return on Shareholders' Funds % 13.2 12.2 Dividend Cover (times) 5.0 7.8 Price Earning (times) - Voting 13.7 14.8 Price Earning (times) - Non Voting 5.3 6.8 Dividend Payout Ratio % 20 13 Premium Income- Life & Non Life Profit before Taxation Rs.Mn. Rs.Mn. 22,000 2,000 20,000 1,800 18,000 1,600 16,000 1,400 14,000 1,200 12,000 1,000 10,000 800 8,000 600 6,000 4,000 400 2,000 200 0 0 08 09 10 11 12 08 09 10 11 12 CEYLINCO INSURANCE PLC Annual Report 2012 5 Results for the year Non - Life Insurance Life Insurance 2012 2011 2012 2011 Rs.'000 Rs.'000 Change % Rs.'000 Rs.'000 Change % Gross Written Premium 11,093,583 10,041,212 10.48 10,829,470 9,833,905 10.12 Net Claims / Net Benefits 4,556,428 4,475,745 1.80 3,990,881 2,946,295 35.45 Increase in Long Term Insurance Funds 6,765,658 6,335,332 6.79 Investments and Other Income 1,030,585 972,876 5.93 4,825,822 3,953,713 22.05 (Including Reinsurance Commission) Transfer to Retained Earnings 995,832 796,189 25.07 Profit Before Taxation 1,803,098 1,454,042 24.01 Profit After Taxation 1,653,249 1,335,495 23.79 Position at the year end Shareholder' Equity 12,562,810 10,933,192 14.91 Long Term Insurance Funds 45,110,789 38,203,473 18.08 Non-Life Insurance Contract Liabilities 7,561,631 6,975,423 8.40 Investments 7,989,808 7,547,964 5.85 44,198,749 40,410,184 9.38 Total Assets 20,733,925 18,059,790 14.81 52,891,649 48,589,972 8.85 Results for the year Non - Life Insurance Life Insurance 2012 2011 2012 2011 Rs.Mn Rs.Mn Rs.Mn Rs.Mn Available Solvency Margin 2,004 1,794 15,627 10,280 Required Solvency Margin 1,769 1,641 1,458 1,256 Solvency Ratio (Times) 1.13 1.09 10.72 8.19 Premium Income - Non Life Premium Income - Life Rs.Mn.
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