People's Insurance to List on CSE via LKR 750 Mn IPO Colombo: People's Insurance Limited ('People's Insurance'), a fully-owned subsidiary of People's Leasing & Finance PLC, has received in-principal approval for its Initial Public Offering ('IPO') from the Colombo Stock Exchange ('CSE'). The IPO is scheduled to open on 16th December 2015 and is expected to raise Rs. 750 million by offering 50 million ordinary shares of the Company at Rs. 15 per share. Applications for the IPO are now accepted and the Company wishes to invite the general public to participate in the growth story of People's Insurance.
Prospective investors could obtain a copy of the Prospectus and Application Forms through all stockbrokers, all branches of People's Leasing & Finance PLC and People's Insurance Limited, selected branches of People's Bank and the Joint Financial Advisors and Managers to the Issue. Acuity Partners (Private) Limited, NDB Investment Bank Limited and People's Bank - Investment Banking Unit are acting as the Joint Financial Advisors and Managers to the Issue whilst People's Bank is the Bankers to the Issue. M/s. F. J. & G De Saram functions as the Lawyers to the Issue whilst SSP Corporate Services (Private) Limited functions as the Registrars to the Issue.
According to the Regulation of Insurance Industry (Amendment) Act No. 3 of 2011 (said Act), every insurance company in existence when the said Act came into operation is required to have itself listed on a stock exchange within five years from the effective date of the said Act. Accordingly, the Company's shares have to be listed before 7th February 2016. It is noteworthy that People's Insurance will be the first general insurance company in Sri Lanka to adhere to the listing requirement under the amended RII Act.
People's Insurance expects to utilise the proceeds of the IPO to further strengthen its equity base and thereby the Capital Adequacy Ratio under the Risk Based Capital regime to be implemented by the Insurance Board of Sri Lanka effective from 2016.
Speaking at the press conference held in Colombo, unveiling the IPO, Mr. Jehan Amaratunga, Chairman of People's Insurance commented: "People's Insurance which commenced operations in 2010 has achieved unprecedented success within a very short period of time and has today become one of the leading general insurance companies in Sri Lanka with an outstanding financial performance. At People's Insurance, we are proactively looking at how best we could harmonise our operations to the changes that are taking place in the industry. Today, I am pleased to announce our IPO. To be the first general insurance company in Sri Lanka to list its shares on the CSE in compliance with the revised regulatory requirements of Sri Lanka, further evidences our commitment to be one of proactive general insurance providers in Sri Lanka. We believe that broad basing the ownership through an IPO will definitely be a significant milestone in the Company's journey, and it will further strengthen our identity and increase visibility amongst the public.
" People's Insurance is one of the leading general (non-life) insurance providers in Sri Lanka, and is ranked 5th in terms of premium income in the industry as per the Insurance Board of Sri Lanka Annual Report 2014. Established with the vision "to be appreciated for building lasting trust based on strength, stability and sustainability", People's Insurance has within a short span of time successfully reached the pinnacle of the insurance industry with the strong backing of its parent, People's Leasing & Finance PLC and ultimate parent, People's Bank. People's Insurance offers a wide array of general insurance products including motor, fire and marine insurance, targeting both individuals and corporates. It provides services across the island through a wide network of regional offices and window offices at People's Leasing & Finance PLC branches. People's Insurance is also backed by reputed reinsurers with strong credit ratings.
People's Insurance achieved a post-tax profit of Rs. 371 million during the first ten months of this year backed by an outstanding underwriting profit of Rs. 208 million during the same period. The assets as at end October 2015 stood at Rs. 5.2 billion while the investment portfolio exceeded Rs. 4 billion. People's Insurance successfully completed its last financial year wherein the profit after tax increased by 21% to reach Rs. 450 million, supported by the outstanding growth in underwriting profit of Rs. 152 million and significantly increased fair value gains from listed shares. The financial position was strong with total assets of Rs. 4.8 billion and net assets of 1.4 billion which is an increase of 18% over the previous year. The financial statements of People's Insurance are prepared in accordance with the revised Sri Lanka Accounting Standards (SLFRS/LKAS) which are now aligned with the International Financial Reporting Standards (IFRS). Furthermore, the Annual Reports of People's Insurance have been recognised continuously for its excellence in financial reporting both locally and internationally, including the 'Gold Award' received for its very first annual report at the Vision Awards Annual Report Competition 2012 held in the United States of America.