The main Sri Lankan insurer Co-operative Insurance, recently announced the date of its initial public offering (IPO), which is expected to take place on December 20, 2021. The IPO will be managed by the Merchant Bank of Sri Lanka.
Affirming its financial strength, the company, which has achieved solid financial performance over the past year, was able to increase its net earned premium (NEP) by 5% in a difficult and economically crippling environment impacted by the COVID pandemic -19. to post a profit of Rs. 695 million for fiscal 2020, up 155% from the previous year. This has allowed it to make an indelible mark among the top 10 insurance companies in the country, affirming the success of the company’s vision of providing unparalleled insurance solutions and services to all Sri Lankans in the country. Isle.
“This IPO is an important milestone for Co-operative Insurance, and a testament to the continued dedication and passion of our staff and the unwavering loyalty of our customers. Our consistent and unabashed performance has continued to demonstrate stability and resilience during a period characterized by many restrictions imposed by the global pandemic. Right now, we are optimistic about what Co-operative Insurance can achieve when we go public, and in turn how that will help grow our portfolio in 2022, ”said Susil Weerasekera, Chairman of Co- operative Insurance.
Last year, Co-operative Insurance’s (general) market share increased to 4.42%, from 4.27% in 2019.[ CITATION irc20 l 1033 ] Compared to the GWP growth of the general insurance industry, which was -2.24% over the past year, the company recorded GWP growth of 2%. The company reported a 05-year average annual PRP growth rate of 21% of the PRP, while the 05-year average annual PRP growth of the general insurance industry was 8.95%. Co-operative Insurance also notes that its contribution to increasing the penetration of general insurance in the country increased in 2020 with 945,743 policies issued by CICL. Profit after tax (PAT) for 2020 rose to Rs. 695 million, an increase of 155% year-on-year. Profit before tax (PBT) increased 120% from the previous year to stand at Rs. 940 million.
“We are delighted to announce that our IPO will take place on December 20, 2021 after a strong financial performance this year. Our strong cost management initiatives, our proactive drive to innovate, our digitally driven process reengineering efforts and, most importantly, the strength of our passionate and deeply dedicated team have helped propel Co-operative Insurance into the ranks of the best. insurance providers in the country. . I think these features have helped us prepare for this IPO and continue to provide unparalleled insurance standards to people from all walks of life across Sri Lanka, ”said Wasantha Ranasinghe, Managing Director of Co- operative Insurance.
Established in 1999 with the aim of taking the concept of insurance beyond the urban and suburban borders of Sri Lanka, Co-operative Insurance today operates the third largest branch network among all local insurance companies. Rooted in a solid foundation of excellence in customer service, a progressive work culture, an enriched experience, a constant commitment to innovation and an equal measure of heart, the company was the first in the country to introduce Flexible insurance solutions suitable for the large part of motorcycles and three-wheeler owners located in rural areas of Sri Lanka.
Further asserting its financial strength, the company has achieved a positive outlook BBB + Fitch rating in recent years. The strategic expertise of its management and its proven financial stability have enabled the company to continue to deliver dividends above the general weighted average rate for treasury bills.
One of the main factors influencing the resilience of the company since 2015 has been its significant investment in technology to both upgrade and streamline processes in order to better equip its employees and customers to access the diverse portfolio. of Co-operative Insurance. As a result, customers have had the convenient option of obtaining auto insurance policies by visiting our website www.ci.lk. This not only strengthened the company’s service portfolio to outperform its competition, but also strengthened its positioning as a people’s insurance company.
Co-operative Insurance also spearheaded the creation of the country’s first training academy set up by an insurance company for its more than 1,500 employees, christening it Coopinsu Training Academy. Through this, the company’s employees have access to powerful local and foreign training programmers and high-quality educational facilities to strengthen their skills and broaden their horizons on a regular basis, a strategy that has a direct impact on the quality of service provided to its customers. This academy is also a registered institute for the UK Chartered Insurance Institute (CII) exam in Sri Lanka.
As one of the country’s leading insurers and one of the largest claims providers, Cooperative Insurance strives to offer affordable premiums to meet the demands of a greater proportion of customers across the country. With this philosophy, Co-operative Insurance moves forward to continue to change the perspective of rural and urban communities on insurance, while providing affordable solutions to clients by working hard to understand and meet their needs. rapid development.