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Business


Asian Alliance achieves solvency margins

Asian Alliance achieves the solvency margin rule applicable in the year 2007, set by the Insurance Board of Sri Lanka.
Asian Alliance Insurance has performed significantly well during the first half of the year 2006, to reach a Gross Written Premium (GWP) of Rs.585 Mn., a 28% growth over the last year. The total investment of the company increased to Rs.760 Mn. from Rs.565 Mn. (as at December 2005) and earned an investment income of Rs.27.3 Mn. for the first half of the year, a 98% growth over last year.
The significant achievements in efficiencies in underwriting and claims management processes has resulted in a 4% improvement over the last year in terms of underwriting results.
The company has met with the required solvency margins in accordance with the solvency margin rule applicable in the year 2007, set by the Insurance Board of Sri Lanka.
The Life Division continues its upward trend in growth. The GWP recorded is a 27% growth over the same period last year. The Operating Surplus from the Life Division grew by 63%, over the same period in the year 2005. Once again this achievement was possible due to the efficiencies achieved in the sales and underwriting processes of the company.
Despite the aggressive competition in the market, the Non Life Division achieved a healthy growth rate of 28% in GWP over the previous year. The company recorded a 30% non-motor growth in the first half, with Fire and engineering achieving a growth of 36%, whilst Marine & Motor achieved growth rates of 85% & 25% respectively. The Company plans to embark on to the next half of the year, with improved services in underwriting, claims and sound financial management, upholding the values of professionalism.
Since its inception, AAIC has steadily made its mark in the Sri Lankan insurance industry. It is backed by financially sound leaders in their respective fields - Asia Capital Ltd., Richard Peiris & Company Ltd. and Sampath Bank Limited.
This strong support ensures that AAICL has the right expertise and reach to propel itself to greater heights in the highly competitive insurance industry in Sri Lanka.

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Brandix goes to South India

By Ravi Ladduwahetty
Sri Lanka’s frontline apparel manufacturer Brandix Lanka Ltd with international apparel partners will be investing up to USS 1 billion for an apparel industrial estate in the Southern Indian city of Vishakapatnam within the next five years.
Brandix India Apparel City (Pvt) Ltd CEO Peter Sun told a news conference at the Trans Asia Hotel on Friday that the project will envisage the setting up of raw material bases for the gigantic Indian apparel sector while also catering to the export of finished goods from the Indian sub continent to the European Union and the United States.
Tagged under the corporate name of Brandix India Apparel City (Pvt) Ltd, the project envisages the setting up of 20 apparel and fabric outlets in an economic zone spanning 1000 acres where a consortium led by Brandix will inject US$ 35 million for the setting up of the infrastructure. The project partners for the infrastructure will include other regional giants such as CMT of Mauritius. Brandot of USA, Pioneer Elastics of Hong Kong Quantum Clothing of UK and Galleon Fund owned by US Hedge Fund Manager Raj Rajaratnam.
The Indian apparel industry is valued at US$ 17 billion and the policy makers have decided to increase it to US$ 50 billion in five years. So, we have a US$ 33 billion opportunity, Peter Sun said. The project will also commence with an underwear plant and a fabric mill at the commencement which will be at a cost of US$ 12 million each.
He explained that most of the major global players were setting up operations in the Indian sub continent which included the JC Penny which had invested US$ 800 million, Wal-Mart some US$ 10 billion, GAP US$ 600 million and it was also the vision of the Indian operation to add value to the group while making Sri Lanka the regional apparel hub. He asserted that the Brandix Group was adamant that it was not going to relocate the Sri Lankan production in India. We will carry on with the Sri Lankan operations while continuing with the Indian operation, he confirmed.