Furthermore, the Sinhaputhra Savings Accounts which are linked to Fixed Deposits have given depositors the much needed convenience to accumulate their monthly interest until withdrawn monthly, thus benefiting them with added interest.  

NDB Bank continues its growth momentum

NDB Bank continued to make strong progress in widening its business base by offering a comprehensive range of banking products to its corporate, SME and consumer customers. The bank continues to invest in building channels of distribution in IT systems and in trained people on whom its success depends.

There is also renewed focus on customer deposit mobilisation through new branches and new product offerings. Despite this continuing expenditure on investment and the change process, the first nine months of 2007 have shown healthy growth in profits.

The Group's profit before tax for the period increased by 48% to Rs 2,309 mn from Rs 1,563 mn for the corresponding period last year after excluding the exceptional capital gain of Rs 1.01 bn generated in the first quarter of 2006 on the sale of the controlling interest in Eagle Insurance Company Ltd.

The Group's profit attributable to shareholders was Rs 1,153 mn as compared with Rs 700 mn (an increase of 65%) excluding the exceptional capital gain.

For the bank alone operating profit before provisions for the current period was 2,089 mn as compared with Rs 1,469 mn for the corresponding period last year, an increase of 42%. The profit before tax increased by 24% from Rs 1,525 mn in 2006 to Rs 1,896 mn during the period while the profit after tax also increased by 17% over the corresponding period last year.

The profit after tax excluding equity capital gains of Rs 249 mn for the current period and exceptional group dividends of Rs 308 m during the corresponding period last year was Rs 776 mn as compared with Rs 586 mn, an increase of 32%.

Overall, the core banking revenue (net interest income, forex and commissions) of NDB Bank grew at a strong pace of 35% based on a significant growth in loans (21%) and deposits (48%) over the corresponding period last year. The bank now has 33 branches and one extension office, which act as distribution channels supporting the various business areas - corporate banking, SME lending, retail banking, investment banking and insurance.

The profit after tax of the bank for the third quarter was Rs 263 mn as compared with Rs 448 mn for the corresponding quarter of the last year.  The main reason for the decrease was the exceptional group dividends of Rs 308 mn realised in the third quarter of 2006 and the general provisions of Rs 122 mn made during the current quarter. If the above exceptional items are excluded from both quarters, the profit after tax for the third quarter of 2007 was Rs 360  mn compared with Rs 202 mn for the third quarter of 2006 (an increase of 78%).

The net interest income of the bank grew at a strong pace of 40% from Rs 1,660 mn in 2006, to Rs 2,324mn for 2007. This was mainly due to the significant increase in the gross lending portfolio of the bank from Rs 40.5 bn as at 30 September 2006 to Rs 49.3 bn as at 30 September 2007.

The total assets of the bank grew from Rs. 57.7 bn as at 30 September 2006 to Rs. 69.7 bn as at 30 September 2007, an increase of 21%. There was also a significant increase in the customer deposits, which was Rs  25.2 bn as at 30 September 2007 as compared with Rs 17.0 bn as at 30 September 2006 (an increase of 48%).

Net other income of the bank excluding equity income for the period was Rs 1,057 mn as compared with Rs 929 mn for the comparative period, mainly due to the steady increase in commercial banking fees and commission and forex income.

The bank has also diversified its avenues of fee income through Bancassurance, Western Union Money Transfer, etc. NDB Bank together with Dialog Telekom has developed and launched South Asia's first M Commerce programme, eZ Pay, a revolutionary method to make payments for goods, services and utility bills through the mobile phone anytime, anywhere in Sri Lanka. This development is expected to increase the customer base of both institutions.

Provisions for doubtful debts were Rs 192 mn for the period as compared with a release of Rs 42 mn for the corresponding period last year. Total specific provisions including the judgmental provisions made over and above the minimum Central Bank mandated provisions as at 30 September 2007 amounted to Rs 1,568 mn compared with Rs 1,508 mn as at the previous year-end. Total provisions as at 30 September 2007 amounted to Rs 2,034 mn compared with Rs 1,783 mn as at the previous year-end. 

During the last quarter of 2006, the Central Bank of Sri Lanka mandated a 1% provision on the performing portfolio of each bank. The banks have been given time to make this provision over 10 quarters ending on 31 March 2009. However NDB Bank has reached the 100% general provision requirement, which amounts to Rs 465 mn by 30 September 2007.

The quality of the loan portfolio is being maintained and as a result, the NPL ratio remained flat at 2% as compared with the year-end. This compares very favorably with the local banking industry norm.

Shareholders' Funds as at 30 September 2007 amounted to Rs 9.13 bn and Rs 11.34 bn for the Bank and the Group respectively, which are well in excess of the regulatory minimum standards. The Tier 1 and Tier 2 capital for the Bank and the Group amounted to 15.81 % and 22.00 % respectively compared with the regulatory minimum of 10% and this positions NDB Bank for future growth.

The overheads of the bank increased by 15% as compared with the corresponding period last year. Despite the increased expenditure, the bank's cost income ratio of 43% for the current period still compares very favourably with the ratio of other local banks.

The effective overall tax rate inclusive of the VAT charge was 48% for the period compared to 45% for the corresponding period last year.  The effective overall tax rate after excluding the exceptional equity capital gains was 53%.

The overall tax rate of the group inclusive of the VAT charge was 45% as compared with 29% for the corresponding period last year. The reduced effective tax rate for the corresponding period last year was mainly due to the exceptional capital gains made by Capital Development and Investment Company Ltd on the sale of its share holding in NDB Finance Lanka (Private) Limited. The effective tax rate excluding the above mentioned capital gains for the corresponding

period last year would have been 48%.

Schwarzenegger seeks universal health insurance, fees

California Governor Arnold Schwarzenegger has proposed making health insurance universal in the state and assessing fees on businesses, doctors and hospitals to fund coverage for children and workers who now lack it.

Schwarzenegger, a Republican who has been a frequent foe of tax increases, would require businesses with 10 or more workers to provide health insurance or pay a 4 percent payroll tax to the state, the most populous in the U.S. All Californians would be required to carry insurance or face withholding of their income tax refunds or garnishment of wages.

Schwarzenegger said all parties would ultimately come out ahead, even with the fees. "When you look at the math, they are actually are going to benefit more than what is being taken away," he said on a teleconference with reporters in Sacramento. "Everyone ends up with a better deal."

Schwarzenegger's health insurance proposal is his first initiative since being sworn in for a second term. Other states from Washington to New York are looking for ways to expand health care to some of the 47 million in the U.S. who don't have insurance.

The plan is similar to that approved by Massachusetts last year, which became the first state in the U.S. to make health insurance mandatory while establishing subsidies to help cover the cost.

"Prices for health care and insurance are rising twice as fast as inflation, twice as fast as wages," Schwarzenegger said. "That's a terrible drain on everyone and it is a drain on our economy. My solution is that everyone in California must have insurance. If you can't afford it, the state will help you buy it, but you must be insured."

Schwarzenegger said his plan could shave as much as $10 billion from health care costs because insurers, doctors and hospitals now are forced to pass on the expense of caring for California's 6.5 million uninsured. The governor's office called that a hidden $1,186-a-year tax on every family.

Under Schwarzenegger's plan, all children whose families earn up to three times the federal poverty level will be eligible for care in California's state-run system, as would adults at or below the poverty line, which is $20,000 for a family of four.

Doctors and hospitals would be charged what Schwarzenegger called a "coverage dividend" of up to 4 percent of their revenue to subsidize the state's health insurance program for the poor.

Some 1.2 million Californians could buy insurance through a state-run pool, which would be subsidised by fees levied on businesses that don't provide health benefits. Some 1.1 million high-income workers would by law have to carry health coverage.

Insurers would be required to spend 85 percent of each premium dollar they receive on patient care rather than administration and profits and would no longer be allowed to deny basic coverage to anyone living in the state.

Schwarzenegger's plan would provide health insurance coverage for children of illegal immigrants, an idea opposed by Republican lawmakers.

Much of the plan will require approval by two-thirds of the legislature, giving Republicans sway over the package even though they are the minority party in both the Assembly and Senate.

"There's a difference between allowing everyone access to health care and forcing taxpayers to pay for health insurance for illegal immigrants, health insurance that may be better than what many citizens have access to," said state Senator George Runner, a Republican and vice-chairman of the Senate Health Committee. Schwarzenegger said federal law dictates that no one, including illegal immigrants, can be denied health care when they show up at an emergency room.

"The question really isn't to treat them or not to treat them," he said. "The question really is how can you treat them in the most cost-effective way."

California in 2003 adopted a law that would have required all but the smallest employers to provide their workers with health insurance benefits, only to have it overturned in a referendum the following year as businesses argued it would deal a blow to the economy. Schwarzenegger backed overturning that law.

Bonanza from Seylan Visa

All Seylan Visa Cardholders can win prizes up to Rs.1,000,000 this December when they make purchases using their Seylan Visa Credit and Debit Cards. Further, by making four purchases with their Seylan Visa Credit / Debit Card from November 25 to December 31, 2007 cardholders qualify to win Rs.250,000 as the main prize and 10 more cardholders will stand the chance of winning Rs.25,000 each.

In addition to the above, cardholders who have made at least three purchases each month using their Seylan Visa Credit / Debit Cards from February - December 2007 will qualify for the Grand Draw, which will award Rs.500,000 to a lucky winner.

Apart from this offer all Seylan Visa Debit Cardholders who buy anything and everything with their Seylan Visa Debit Cards and can get their shopping bills reimbursed from December 9 to December 23, 2007, through the Seylan Magic Moments Promotion.

All cardholders will receive discounts at selected merchant outlets too. Seylan Visa Cardholders are exempted from Stamp Duty, Fuel Surcharge and Debit Tax on purchases.

icici  Bank  sponsors  Mad  About  Money

ICICI Bank, Salary Accounts sponsored the recently staged Mad About Money at the Cinnamon Grand Hotel.

This highly successful, internationally acclaimed English Theatre from India had ICICI Bank's customers in stitches of laughter.

Produced by Ashwin Gidwani and directed by Mahesh Dattani, Mad About Money has been staged in Mumbai, Bangkok, Singapore, Kuala Lumpur and Dubai to packed audiences.

"We saw this as an opportunity to thank our customers for their loyalty towards ICICI Bank, as well as promote our products and services, namely our Salary Accounts which has become increasingly popular with local corporates," said Senior Vice President and Head of Retail Liabilities, Sachin Sikka .

Sikka said that the bank's customers could look forward to many more such events, as well as a host of new products and facilities that they hoped to launch.

Pictured: ICICI Bank's Deputy Country Head - Romesh Elapatha and Senior Vice President and Head of Retail Liabilities - Sachin Sikka, Anusha David - Chairperson Headlines Public Relations, together with the cast of Mad About Money which included Sonar Sehgal, Amal Talwar, Jayati Bhatia and Gaurav Sharma.

Insurance in Sri Lanka

Union Assurance grows turnover and profits in 3Q

Union Assurance has reported strong growth in turnover and profitability for the quarter and period ended September 2007.

General and life insurance premiums for the quarter grew by 17%, from Rs. 971 million in 2006 to Rs. 1.1 billon in 2007. Consolidated profit after tax also increased by 107% to Rs. 30 million for the quarter ended 30th September 2007.

Life and general insurance premiums for the first nine months of the year increased by 21% from Rs. 3.0 billion as at September 2006 to Rs. 3.6 billion as at September 2007. Consolidated profit after tax of Rs. 80 million as at September 2007 was 25% higher than the Rs. 64 million recorded in the previous year.

The company's innovative motor insurance product - Union Motor "Call & Go" has been well received in the market.

"Call & Go" policyholders who are involved in an accident may log an entry with the 24 hour call center on 011-2428444 and obtain a reference number. A competent Union Assurance representative will follow up to assess the damage at a convenient location, and ensure speedy settlement of the claim.

"By enabling the customer to go about his activities without waiting at the accident site for the insurance assessor, we have taken convenience to a new level," stated CEO of Union Assurance, Marina Tharmaratnam. 

Ceylinco Life unveils Major Surgery Policy to cover over 500 surgeries

An enhanced insurance plan that covers a whopping 525 different surgical procedures has been introduced to the local life insurance market by Ceylinco Life, Sri Lanka's leading life insurer.

Ceylinco Major Surgery which is the only policy in Sri Lanka to cover more than 500 surgeries, is the successor to Ceylinco Life's ground-breaking Major Medical Policy introduced to the market five years ago.

An amazing feature of the new surgical plan is that a policyholder who is in need of undergoing a surgical procedure covered by the policy can claim up to three times the sum assured.

A mechanism to combat the impact of inflation has also been built into the plan, with Ceylinco Life undertaking to increase the value of the surgical benefit by 10 per cent annually with no increase in the premium.

The 525 types of surgery provided for, which literally cover a policyholder from head to toe, are classified in to four groups for the purpose of claim settlement. Surgeries classified as Type A are entitled to 100 per cent of the sum assured, while Type B surgeries receive 40 per cent, Type C 15 per cent and Type D a fixed lump sum of Rs 15,000.

"This policy covers major surgical procedures like replacement of heart valves, transplantation of the kidney, liver or lung, or bypass of intracranial blood vessels to simple procedures like amputation of toes or surgery for carpal tunnel syndrome," Ceylinco Life's Chief Executive Director R. Renganathan said. "Not only is it the only policy of its kind in Sri Lanka, it is possibly unique in the South Asian region."

No hospital bills are required for payment of claims, he said. On receipt of the policyholder's diagnosis card, Ceylinco Life will pay a lump sum to the value agreed in the major surgery policy. Policyholders may also receive a daily cash payment of between Rs 250 and Rs 5000 for every day they spend in hospital.

Speaking at the launch of Ceylinco Major Surgery at Waters Edge, Ceylinco Life Director Thushara Ranasinghe said the product would be constantly monitored and any repudiated claims studied to assess whether more surgeries need to be included in the list of surgeries covered by the policy.

The policy does not provide cover against congenital conditions, pregnancy and injuries resulting from alcohol consumption or those sustained while under the influence of alcohol.

All existing Ceylinco Major Medical policyholders will automatically migrate to Ceylinco Major Surgery, and other Ceylinco Life policyholders who have not obtained cover against surgery will be afforded an opportunity to add-on the Major Surgery benefit, without paying the standard inclusion fee in the course of the next three months, the company said.

Ceylinco Major Surgery is available to persons between the ages of 18 and 60 for a period between 5 and 30 years. The minimum sum assured for surgical cover is Rs 50,000 and the maximum is 50 per cent of the total life risk of the policyholder, subject to a maximum of Rs 500,000.

Sirasa Super Star covered by Janashakthi Full Option

Sri Lanka's only award winning insurance brand at the SLIM Brand Excellence 2007, Janashakthi Insurance Co. Ltd. (JICL) was chosen by Sirasa Super Star 2007, 24 year old medical student Pradeep Rangana to comprehensively cover his brand new Rs. 3.5 mn Honda City with an exclusive motor insurance policy. The company has, in addition, also insured the motor cycles of all other 11 finalists with its flagship brand, Janashakthi Full Option.

The insurance policies were handed to Pradeep Rangana and the 11 finalists by JICL's General Manager - Marketing and Sales, Ravi Liyanage at the Stafford Motors showroom recently.

Managing Director of Janashakthi Insurance Co. Ltd., Prakash Schaffter said that JICL was privileged to be associated with the Sirasa Super Star given the iconic status reached by Pradeep Rangana among the Sri Lankan masses.

"Winning the vigorously contested and much coveted title is indeed an admirable achievement for this 24 year old medical student. Being a company which also enjoys continuous popularity among the Sri Lankan masses in all corners of the country, Janashakthi Full Option was the obvious choice of this winner."

The Janashakthi Full Option motor policy provides the most amount of benefits to its customers. Among them are 15% Upfront No Claim Bonus, Onsite Approval of Claims, Cash for Replacement Vehicle, 15 Days Automatic Cover, Highest Loyalty Bonus in the industry of 75%, Cash for Hospitalisation, Personal Accident Insurance for Occupants, Pedestrian No Fault Cover and 24 Hour Customer Care Centre.

Furthermore, the state-of-the-art Janashakthi Auto Centre is available to customers who wish to have their vehicles repaired to the manufacturer's specification as soon as possible.

JICL has reported a growth of 22% by the end of third Quarter 2007 in general insurance with its flagship motor insurance brand Janashakthi Full Option reaching a growth rate of 26% and registering an absolute premium value growth over the market leader.

JICL's General Manager - Sales and Marketing, Ravi Liyanage said, "Our flagship brand Janashakthi Full Option has continuously shown exceptional growth both in volume and value, the highest among the three leading insurance companies in the country. In fact Janashakthi Full Option's proactive initiatives in delighting the motorists of this country have lead to many industry 'firsts' in both product and processes.

"The innovations we offer the motor insurance policy holders of this country give them the best value for their money. We will certainly enhance the 'Fullness' of our 'Full Option' brand at every given opportunity," he said.                          

Janashakthi Insurance Co. Ltd. is the first insurance company in Sri Lanka to be awarded the ISO 9001:2000 international quality accreditation for its Life and General Operations. It is also the first and only insurer in Sri Lanka to adapt its operational procedures and systems for the continuous improvement of its quality management system for both life and general insurance.

Janashakthi Full Option is the flagship motor insurance brand of Janashakthi Insurance Company Limited and was recognised by the Sri Lanka Institute of Marketing at the SLIM Brand Excellence Awards as being the most innovative service brand in Sri Lanka for the Year 2006.

Easily one of Sri Lanka's most popular events in recent times, the Sirasa Super Star Season 2 attracted a record number of 51,000 aspirants from all over the country across ethnic, age, geographical and cultural barriers. A total of 18 judges short listed them over five rounds at different locations to the final two contestants who performed at a packed to capacity glittering finale recently and simultaneously to hundreds of thousands of television viewers all over Sri Lanka.

Allianz Lanka continues strong growth trend

Allianz Lanka continued its strong upward growth trend into the third quarter 2007, achieving a substantial 174% growth in profit before tax, an increase from Rs 9.3 million in 2006, to Rs 25.6 million in the first nine months of the current year.

Gross written premium also reached a record Rs 324 million during this period, which is a substantial 44% growth over last year's of Rs 226.2 million. Underwriting profits swelled correspondingly to Rs 11.8 million in 2007, reflecting an increase of 146% over the underwriting profit of Rs 4.8 million during the same period last year

Commenting on the results, CEO Allianz Lanka, Surekha Alles said, "We are, understandably very satisfied with our performance. Our progress this year has been substantial. We have grown the business in many areas and are confident of achieving our Annual Plan. I am pleased to say that our shareholders have also expressed confidence in our performance and are planning to release more capital into the country."

Allianz Insurance Lanka Company, the fully owned subsidiary of German insurance giant Allianz SE and the latest addition to its worldwide network, will celebrate its third successful year in Sri Lanka shortly, and will soon relocate to spacious modern premises in a central location to put into place ambitious expansion plans.

The local company's profitability was reflected in the successful performance of its parent company, with Allianz Group too remaining on target in the third quarter, with quarterly net income increasing by 20.7%, from 1.59 billion euros to 1.92 billion euros during the period.

Net income for the period increased by 29.2%, to 7.30 billion euros and operating profit on a nine-month basis increased by 7.8%, to 8.76 billion euros, of which 2.60 billion euros was the profit of the third quarter. While this corresponds to a decrease of 2.1 %, operating profit remains close to the high level of the previous year's quarter at 2.66 billion euros.

Total revenues in 3Q 2007 amounted to 23 billion euros, which reflects a growth of around 400 million euros compared with the third quarter of 2006. Double-digit growth in operating profit came from the asset management and life insurance segments. 

Allianz SE's Chief Financial Officer, Dr Helmut Perlet explained, "The stable operating result shows that we will achieve our earnings targets for 2007 despite the difficult capital market environment. We will continue to pursue our policy of robust risk management, as well as enhance the quality and efficiency in all lines of business."

Ceylinco Life now on eZ Pay

A simple, SMS-based payment mechanism adopted by Ceylinco Life will make life easier for thousands of policyholders protected by the leader in life insurance, a press release said.

The company this week announced it had joined the eZ Pay mCommerce initiative pioneered by Dialog Telekom and NDB Bank, enabling all policyholders who have Dialog connections to make premium payments from their mobile phones.

"This is a quantum leap in convenience for our policyholders," said Ceylinco Life Chief Executive Director R. Renganathan. "Thanks to Dialog and NDB Bank, our policyholders now have a secure and effortless method to keep their policies active by making payments from anywhere and at any time of the day or night."

Dialog Telekom Group Chief Executive, Dr. Hans Wijayasuriya said: "When we launched eZ Pay we paved the way for a revolutionary method of making payments via mobile phones, characterised by convenience, flexibility and safety. The agreement with Ceylinco represents new opportunities for both companies and a complete solution for Ceylinco Life policyholders as they would be able to reap the many benefits that eZ Pay has to offer."

NDB Bank CEO Nihal Welikala said: "We are happy to welcome Ceylinco Life to the eZ Pay network. Ceylinco Life has a policyholder base that represents a significant segment of our population which will now benefit from the features of eZ Pay."

All that is required is for Ceylinco Life policyholders to swap their existing SIM cards for new eZ Pay-enabled SIM cards at any Dialog Arcade or Customer Service Centre and register for the service. Customers will be able to get the eZ Pay enabled SIM free of charge till December 31, 2007.

The change of the SIM card will not result in a number or package change, and the new SIM can be used on any model of mobile phone connected to the Dialog network. The facility is available to both pre-paid (Kit Card) and post-paid (package) connections.

The insertion of the new SIM converts the user's phone to an electronic wallet, which can be topped up with credit by visiting any Dialog arcade, service centre, franchise outlet or authorised eZ Pay Top Up Agent, whose establishments are identified by an eZ Pay sign. eZ Pay customer could also top up their eZ Pay card account at any NDB Bank or Commercial Bank branch. 

The software that enables the transfer of funds for the payment of insurance premium resides on the SIM card and can be used to process transactions of up to Rs 100,000. The eZ Pay facility is accessed via the phone menu and all transactions are confirmed with an electronic receipt by return SMS.

"The simplicity and security that eZ Pay offers is its biggest attraction," Renganathan added. "Policyholders need not visit branch offices or wait for an agent to call on them to make payments. Neither do they need credit cards or cheque books. This is truly a revolutionary facility that reaches the grassroots and complements Ceylinco Life's efforts to take insurance to the masses."

eZ Pay is founded on best-in-class electronic commerce and messaging infrastructure which is also aligned to and compliant with industry standards in transaction security including the payment card industry and 3DES end-to-end encryption standards. Additionally, all transactions are initiated and approved using a PIN similar to ATM transactions.

Ceylinco Life also offers policyholders the option of paying premium on-line and via bank and credit card standing orders.

Amana and PABC in strategic alliance to enhance customer service

Amana Investments, the country's market leader in Islamic financial services entered into a strategic alliance with PABC Bank last week to bring Amana's customers a new range of value added services.

The Memorandum of Understanding signed between the two financial institutions allows PABC Bank to provide foreign exchange products and services such as travellers' cheques and foreign currency for travellers, and the encashment of travellers' cheques, foreign currency notes and foreign currency drafts at the customer service counters of Amana Investments.

These services will initially be available at Amana's counters in Colombo and will be later extended to its branches outside Colombo. The high networth customers will receive home delivery services.

Commenting on the new arrangement, Amana's Head of Operations, M.S. Quvylidh, said "Through this alliance we are now able to provide our customers a service that they have been long demanding. It's a timely value-addition and the whole process is Sharia compliant." PABC's Senior Deputy General Manager, Claude Peiris, said "We are one of the largest issuers of AMEX travellers' cheques in the market and are happy to extend this capability to Amana's customers."

Amana will also provide its top-end customers with co-branded ATM cards which they can use to draw money on their investment accounts with Amana at any PABC ATM point. PABC has 26 ATM points in the main cities.

"This is a good example of two different financial institutions, one offering conventional banking products and the other Islamic financial products cooperating to enhance customer service in the market place," said Managing Director/CEO, Amana Investments, Faizal Salieh. "We are happy to forge this alliance with Amana with whom we have an excellent business relationship since 2001," said PABC Managing Director/CEO, R. Nadarajah.

In the previous week, an Amana subsidiary company launched the country's first Sharia compliant equity fund called the NAMAL Amana Equity Fund in collaboration with National Asset Management Ltd.

Union Assurance recognises top producers

Union Assurance, a key player in the Sri Lankan insurance industry recently concluded a top achievers' seminar for 73 of its top producers at the Galle Face Hotel.

The International Achievers Seminar 2007 also put the spotlight on these 73 top producers, giving them a platform to discuss and share their best practices in life insurance with the crowd. In total, the 73 top producers received 91 awards which were presented that day. Among them were the Limra International Quality Award, International Productivity Award for advisors and International Quality Management Award for agency managers. 

Speaking to The Sunday Leader AGM - Training and Development, Union Assurance Suranjith Godagama stated that the 73 top producers were recognised with internationally recognised certificates for bringing about a change in standards of excellence as well as for bringing prestige to the company.

Godagama went on to say that the International Achievers Seminar 2007 is in collaboration with LIMRA (the Life Insurance Marketing and Research Association, a U.S based company) because Union Assurance applies LIMRA's learning to their sales professionals because LIMRA has schemes for top achievers internationally.

Godagama added that Union Assurance continues to develop its sales professionals for these awards. He said, "We've been very successful in producing the highest numbers of winners from Sri Lanka and or sales people have met the standards that are recognised by LIMRA, some of the highest standards set by the USA and now have certificates from the USA."

Speaking about the event Godagama said, "We now want to create a forum for top achievers to share their best practices with other members, and at the moment there is no such forum in the country but there are lots outside like Million Dollar Round Table, the LIMRA Financial Advisors' Conferences and the Asia Pacific Life Insurance Conference where top professionals get together and share ideas, practices etc.

"In this event, we picked four of our top producers to present their best practices using modern presentation techniques and equipment with other achievers. Our aim is to produce top quality sales professionals who are capable of addressing any international conference anywhere in the world," said Godagama.

At the International Achievers Seminar 2007 which also featured a book stall with many professional self improvement books, donations were made by the top producers towards helping a needy child with physiotherapy.

Union Assurance also launched the Union Pride sales professionals' theme song which was in all three languages.  

 The event also saw 23 members and nine trainers receive certificates of LIMRA's Professional Development Course.

Union Assurance is committed to pursuing the highest standards of service and security to its customers. Union Assurance has grown over the years to become a well established insurance company ready and able to provide a caring and efficient service to its clientele, which include many large trading and industrial organisations in Sri Lanka as well as individuals from all walks of life, through an extensive network of 43 branches islandwide, strategically located throughout the country.

Union Assurance is also equipped with all modern facilities and designed as a 'one stop' insurance centre, at which UAL's customers could transact all their insurance business. Union Assurance has taken strides to become a popular choice in both life and non life insurance with each day with the innovative insurance packages they offer.

Customers are top priority here, and the company has enjoyed immense success which can be put down to the fact that they have the backing of a professionally trained staff where team work plays a major role in operations, keeping Union Assurance a step ahead of the competition in the industry. The company's financial stability and strength places it firmly at the apex of private insurance service providers in Sri Lanka.

Asian Alliance helps to celebrate World Children's Day

Sri Lanka Broadcasting Corporation together with the Ministries of Education and Cultural Affaires celebrated World Children's Day with a cultural show at the John De Silva Memorial Theatre recently.

The Chief Guests were Minister of Education Susil Premajayanth and Minister of Child Development and Women's Empowerment, Sumeda G. Jayasena. The aim of this cultural show titled Me Ape Lokayayi (This is Our World) was to support the young talents and skills. Approximately 175 children from 12 schools participated making the event colourful with their songs, dances, music, etc.

 A main highlight of the event was the presentation of life insurance policies to Sumana Jayathilaka and Mahinda Algama by Asian Alliance Insurance, commending their immense service to the children.

Picture shows Sumana Jayathilake being felicitated. Also in the picture are Sumeda G. Jayasena, Manager - Marketing and Channel Development of Asian Alliance Insurance, Nadi Dharmasiri and Director General of Sri Lanka Broadcasting Corporation, Samantha Weliweriya

Sri Lanka Insurance expands branch network to Maradana

Sri Lanka Insurance opened its newest branch in Maradana recently further strengthening the company's reach across the island.

Chief Guest, Managing Director - Metropolitan College, Mohomad Siraz inaugurated the Maradana Branch.

Building on a large network base in Sri Lanka with more than 110 branches already in operation, Sri Lanka Insurance is continuing to extend its reach making insurance services available island wide.

This modern branch is fully networked and equipped with state-of -the-art technology to provide integrated services with speed and efficiency, thereby fulfilling the insurance requirements of its customers in the surrounding areas.

Ceylinco Life policyholders take Singapore by storm

ÿLife insurance brought a wholly unexpected bonanza of a lifetime to 58 policyholders of Ceylinco Life recently when they and their families won an all-expenses-paid holiday in Singapore from the life insurance market leader.

A total of 240 people from all walks of life and all parts of Sri Lanka with one thing in common - their life insurance partner - spent four fun-filled days in the Lion City in the second phase of the 2007 Ceylinco Life Family Savari programme.

A comprehensive city tour, a night safari, a visit to Sentosa, gala dining at exotic restaurants, shopping excursions and a special event organised by the Singapore Tourist Board were the highlights of the 'Singapore Savari.'

In the first leg of the Ceylinco Life Savari programme, another 1600 policyholders were given a fun-filled day of thrills and spills at the Leisure World theme park in Avissawella.

Ceylinco Life's Chief Executive Director, R. Renganathan said the Family Sawari programme was the first and only promotional campaign of its kind in the local market designed to increase the penetration of life insurance. "This innovative campaign is part of our initiative to take the message of life insurance to the people of Sri Lanka while sharing our success with our policyholders," he said.

A significant aspect to the campaign, Renganathan said, was its focus on the family and the importance of the family enjoying good times together. "Ceylinco Life has been able to organise events of this magnitude because of its strength and stability," he added. Easily the biggest interactive programme to be conceived by a local insurer, the 2007 Family Sawari programme is the third in a series that began in 2005.

Participation in the Ceylinco Life Savari was open to policyholders of the company regardless of the value of their policies. All active policyholders as at 30th June 2007 were considered for the draws for the day-long visit to Leisure World and the trip to Singapore.

Ceylinco Life's Family Savari programme is a runaway success that has developed a deeper significance than originally envisaged. Besides rewarding policyholders with memories that will last a life time, it has also become a solid demonstration of the amity and bonhomie that is possible across racial, social, economic and geographical boundaries.

Birla Sun Life enters top-5 in India

If you had invested in tax-planning funds three years ago, you would have seen that the average performer among them has given you about 48 per cent. Not a small feat, considering that banking funds, which constitute the top-performing segment, have delivered just a shade better - 50 per cent or so during this period.

While their modest sizes indicate that not everybody in the investor fraternity has appreciated the category, tax-planning funds are actually quite diversified. Their portfolios are considerably broad-based, often made up of stocks from across the market-cap range.

What makes these funds so unique, and we have stressed on this point time and again, is that an investor needs to stay locked in for three years. Clearly, even the most uninspiring fund manager should be able to utilise a three-year stretch prudently.

Asset base

Despite all this, the small AUMs (assets under management) are quite an embarrassment. We will not specify any of the microscopic figures here, they are far too humble to be mentioned. However, we will simply point out that the AUM of the entire funds industry in India stands at roughly Rs 5.6 trillion.

A compilation by rating major Crisil underlines that the total AUM represents a marked rise of more than Rs 800 billion over the September-end AUM (Rs 4.8 trillion). That, is a 17 per cent month-on-month growth. All the 30-odd fund houses managed to record an increase in their AUM during the month.

How did this happen?  Krishnan Sitaraman, Head - Fund Services and Fixed Income Research, Crisil, has this quote to share: "The increase in AUM can be attributed to the rise in the stock market, large corpus raised by new fund offerings, lower redemptions and availability of liquidity in the banking industry, which saw short-term fund flows into liquid schemes. Investors, who withdrew money from equity schemes fearing a sharp correction when the benchmark indices were scaling new highs, typically reinvested these funds into liquid and liquid-plus plans."

That explanation is quite a pointer, we think. Incidentally, the country's No 1 fund house, Reliance Mutual Fund, retained its position, its AUM sailing to nearly Rs 800 billion in October. ICICI Prudential MF came second with Rs 5.6 billion and UTI MF came third with Rs 5.2 billion.

The last month's numbers have undoubtedly conveyed that the order of things is changing. As the rating agency notes, a major entrant into the top-five roster is Birla Sun Life MF, which ended the month with Rs 3.4 billion. And that exceeded Franklin Templeton MF's score. For the record, FT had an asset base of Rs 3.2 billion.

New Norms

Investors in mutual funds need to know that the industry will now have to contend with a few norms that have lately crept in. One, the quota for funds in equity offers stands hiked. This, it is felt, will lead to greater 'retail investments' in the stock market. Two, the market regulator has said that the duration of short-term investments by funds in bank deposits to 182 days (up from 91 days). This, it may be noted, will allow more room for fund managers to get better options. 

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