Janashakthi records impressive Rs. 525 million profit

Janashakthi Insurance Co. Ltd on the back of a Rs. 525.77-million net profit after tax for the year ended 31 December 2007, the highest net profit margin from among the five leading insurance companies in the country, is gearing to list in the Colombo Stock Exchange (CSE) in June, according to a top company official.

“We are looking to list by June the latest and all the relevant procedures are on target,” Managing Director of Janashakthi Insurance Co. Ltd. Prakash Schaffter told The Sunday Times FT on the sidelines of a press conference to announce Janashakthi’s results.

He said that the company’s strong and stable financial position as a key player in the Sri Lankan insurance industry, contributed to significant progress in 2007 with its highest ever total revenue reaching Rs. 5.2 billion.

“We are pleased about the gain in market share by our flagship brand Janashakthi Full Option for the period under review, whereas some of the insurance companies have lost market share in the same period,” he said.

Schaffter said that the performance was led by growth in the General Insurance (GI) sector largely through the company’s brand Janashakthi Full Option which contributed to over half the company’s business. “The Motor Insurance segment achieved a 22 percent growth over last year recording Rs. 2.76 billion premium income. Janashakthi Full Option has also recorded the highest absolute premium growth in the Motor Insurance category with an increase of Rs. 500 million. There has also been considerable headway in the Life Insurance business achieving total premiums of Rs. 1.2 billion, an increase of 18 percent with an increasingly steady retention of business,” Schaffter added.

Janashakthi achieved 17 percent growth in Gross Written Premiums in the GI segment, to reach Rs. 3.68 billion. “The Life Insurance business has performed beyond expectations recording the highest ever surplus transfer amounting to Rs. 278 million which is a 340 percent growth over the corresponding period. Gross written premium of Life business increased to Rs. 1.2 billion with a growth of 18 percent. First year premium of the company reached Rs. 528 million with an impressive growth of 33 percent in renewals. Rationalisation of Life distribution attributed to the above outstanding performance,” Schaffter added.