The IPO will be managed by the Merchant Bank of Sri Lanka.
Affirming its financial strength, the company was able to grow 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 last year.
Which enabled it to make an indelible mark among the top 10 insurance companies in the country.
This affirms the success of the company's vision of delivering unparalleled insurance solutions and service to all Sri Lankans across the island.
"Co-Operative Insurance has yet again delivered a strong year of financial performance the past year with revenue (Gross Written Premium) of Rs. 5.2 Bn.
The Company’s steady, undeterred performance continued to demonstrate stability during a period that was characterized by numerous restrictions forced into play by the global pandemic.
Our robust cost management initiatives, proactive drive to innovate, commitment to process re-engineering efforts backed by digital technologies, and most importantly the strength of our passionate and deeply dedicated team have helped Co-Operative Insurance to move from strength to strength.
As a truly Sri Lankan company, these traits have helped prepare ourselves for the upcoming IPO that will enable us to further offer unparalleled standards of insurance to people from all different backgrounds across Sri Lanka," remarked Co-Operative Insurance Managing Director Mr. Wasantha Ranasinghe.
During the period in review, Co-Operative Insurance's market share has increased to 4.06%, in comparison to 3.89% as in 2019.
(ircsl.gov.lk, 2020) Compared to the Industry GWP growth, which was (2.24%) during the past year, the company recorded GWP growth of 2%.
The company reported a 05-year Average Annual Growth Rate of 21% of GWP, while the industry 05-year GWP Average Annual growth was at 8.95%.
Co-Operative Insurance also notes that its contribution to increasing insurance penetration in the country has increased during the period in review with 916,682 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 previous year to stand at Rs. 940million.
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 company 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.
According to general insurance policy, there was a need to grow the company's capital to Rs. 1 billion in 2015, an undertaking Co-Operative Insurance lead with the creation of its subsidiaries Co-Operative Insurance Company and Cooplife Insurance – a historic benchmark within the organization.
Of this, 99.99% of the total investment of Rs. 1 billion were investments from co-operative societies across the country.
Together, they provide diversified general and life insurance solutions to customers from both rural and urban backdrops, with solutions that serve individuals, SMEs, Cooperative Society members and Corporates.
Co-Operative Insurance was also able to grow its share capital of Rs. 1 billion in 2015 to Rs. 1.6 billion, and its assets to Rs.11 billion.
The company grew from strength to strength, posting a staggering 44% growth in 2016 by competing side by side with multinational companies around the world, enabling it to become the fastest growing insurance company in the local insurance industry that year.
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 has 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 our 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.
Co-Operative Insurance also lead the establishment of the country's first training academy installed by an insurance company for its over 1500 employees, naming it the Coopinsu Training Academy.
Through this, the company's employees are given access to powerful local and foreign training programmers and high quality educational facilities to fortify their skillset and further their horizons on a regular basis, a strategy that directly impacts the quality of service provided to its customers.
Also this academy is registered institute for Chartered Insurance Institute in UK (CII) Exam in Sri Lanka.
As one of the foremost insurers in the country and the biggest claims provider, Cooperative Insurance works to offer affordable premiums to match the requirements of a wider proportion of customers across the nation.
With this ethos, Co-Operative Insurance forges ahead to continue to change the viewpoint of rural and urban communities on insurance, while providing affordable solutions to customers by working hard to understand and cater to their rapidly evolving needs.
Businesscafe Image Co-Operative Insurance Managing Director Wasantha Ranasinghe.