Rising above complex operating dynamics, SANASA Life Insurance Company PLC recorded a yet another successful year in 2022. Well – positioned as a trusted micro insurer, we continued to deliver a decisive growth strategy whilst staying true to our mission to support the underserved communities across the island nation. I together with my Board welcome you to the 20th Annual General Meeting and hereby present our Annual Report along with the audited financial statements for the financial year ended 31st December 2022. I take this opportunity to set forth our accomplishments in the year against the many challenges that engulfed our business environment.
Our nation was in crisis in the year- worst ever since independence – with unprecedented social and political unrest amidst a collapsing economy. Against recessionary trends in the world economy, along with geopolitical upheavals, Sri Lanka was faced with soaring inflation, low foreign currency reserves island wide power cuts and short- supply of food, medicine and fuel. The nation defaulted on its foreign debt, compromising the sovereign rating in the international financial markets. It is in this backdrop that mass protests took the country by storm, leading to near lawlessness and significant political change. Income disparities widened sharply; the middle – class and the poor were completely vulnerable and distressed.
Business with Social Goals
The Sanasa Movement we have nurtured over thirty years is dedicated to build close ties and support the underprivileged communities. Our business model, underpinned by cooperative values, is unique and is built on ‘social market economic principles’. Aligned to this, we are not merely providers of life insurance solutions for profit. Instead, we take it as our duty to take care and uplift the wellbeing of our target market—grass-root masses living at the bottom of the economic pyramid. We have successfully integrated social and ethical considerations to our business goals. In this setting, our initiative this year, to commit to the United Nation’s Sustainable Development Goals are fundamentally linked to our business model and the Sanasa ideals we uphold.
Upholding cooperative principles the SANASA Movement is deeply rooted with a wide outreach amongst grass- root communities, be it in rural or urban Sri Lanka. With the engagement of the SANASA societies, we have a critical role to play in their lives, more so, significant today, amidst current economic hardships. Hence, we continued in the year, to refine our business strategies; strengthen our technical skills; and muster our team to be spirited in delivering targeted results against difficult market conditions. Our financial performance was noteworthy, with premium income growth and strong profits at the consolidated level. We also worked towards meeting our social goals with key welfare initiatives to uplift employee wellbeing and local communities.
Our Board members, multi- disciplined and versatile, are committed to ensure quality governance and risk management, more so, warranted for a newly listed organization on the public domain. Therefore, we remained steadfast in our efforts to realign our businesses to meet quality standards in our products and comply with prescribed governance practices and regulatory directions. Our Board sub- committees played a critical role in this regard. The progress we have made thus far, is reflected through the many accolades we have received in the recent past; including the recognition we gained in the year for our reporting initiatives at the CA Sri Lanka annual report competition.
The slow and uncertain economic recovery, conditional on multilateral cooperation, will heavily weigh down on the island nation’s prospects in the shot-term. All hopes are set on the medium term given that we pursue an effective monetary policy to support price stability, rationalized fiscal policy along with structural reforms and debt sustainability. As an emerging micro insurer, we have a critical role to play in supporting the nation’s resurgence in the years ahead. Our engagement with grass – root masses will be essential as the country seeks to balance out the income disparities and achieve more equitable development goals. We have invested well over the years to strengthen our core competencies and drive for digitalization in our business processes. This together with our discerning strategy, the dedication of the team and the support of the Sanasa network will continue to reinforce our market positioning, whilst opening up new opportunities.
I would like to place on record my gratitude to our Group Chairman, Dr. P.A.Kiriwandeniya, for his visionary leadership, which was pivotal in positioning this organization as well – respected micro insurer in the country. My sincere appreciation is extended to Mr.T.Karunasena for his service as the immediate past chairman and to my Board for their direction and support extended in achieving our strategic goals in a volatile business environment. I would also like to thank our Chief Executive Officer and his competent team for their unyielding efforts in talking on the opportunities to deliver a strong performance in the year, even against all odds. I also take this opportunity to thank our shareholders, SANASA socities, strategic partners, regulators and all other stakeholders for their trust placed in our mission. I am confident that our stakeholders will continue to collaborate and support us to deliver a sustainable growth strategy.
Dr.H.I.S.K.Wickramarathne Chairman Sanasa Life Insurance Company PLC