Mar 18, 2010 (LBO) – Sri Lanka’s Ceylinco Insurance Company is to tie up with insurance companies in Asia and the Middle-East to market a motor policy with immediate claim settlement that took the domestic market by storm, officials said. Gross written premium fell 9.0 percent to 4.60 billion rupees and net premium after paying re-insurance fell 15.0 percent to 3.60 billion rupees.
Net claims rose 2.0 percent to 1.9 billion rupees. Investment income fell 4.0 percent to 1.07 billion rupees but unspecified other expenses rose to 222 million rupees from 89 a year earlier.
Ceylinco Insurance said policy incomes from related companies dropped after the group’s property and financial sector firm were hit by liquidity shortages and falling real estate prices.
“From the drop in business, about 60 percent came from the group. From the total business it is about 3.0 to 5.0 percent,” R Renganathan, joint deputy chairman said.
Officials said the firm’s shareholding had also changed as group companies sold shares to raise cash.
Barca Capital, a US-based find is one of Ceylinco’s major shareholders outside its employees, Renganathan said.
“Most of the group companies held the shares and due to