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Co-operative Insurance IPO on 20 December

14 Dec 2021

Commenting on the IPO, Co-operative Insurance Chairman Susil Weerasekera said: “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 on what Co-operative Insurance can achieve during our IPO, and in turn how it will help elevate our portfolio in 2022.” The past year, Co-operative Insurance’s (general) market share has increased to 4.42%, in comparison to 4.27% as in 2019 (ircsl.gov.lk, 2020). Compared to the general insurance industry gross written premium (GWP) growth, which was -2.24% during the past year, the company recorded GWP growth of 2%. The company reported a five-year average annual GWP growth rate of 21% of GWP, while the general insurance industry’s five-year GWP average annual growth was at 8.95%. Co-operative Insurance also noted 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% YoY. Profit before tax (PBT) grew by 120% compared to the previous year to stand at Rs. 940 million. “We are delighted to announce that our IPO will take place on 20 December 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 (MD) Wasantha Ranasinghe. Affirming its financial strength, the company, which secured a strong financial performance for the past year, was able to grow their net earned premium (NEP) by an impressive 5% 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% from the year before. 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 has enabled the company to continue to deliver dividends higher than the general weighted average treasury bill rate.


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