Janashakthi eager for more purchases in general insurance
View(s):Hot on the heels of acquiring AIA General Insurance Lanka Ltd, Janashakthi Insurance PLC (Janashakthi) which reported a consolidated Gross Written Premium (GWP) of Rs. 10.664 billion for the year ended 31st December 2015 will take up similar opportunities like the AIA acquisition. Officials said that if such an opportunity presents itself to them they’ll certainly grab it. ”We’re open for more consolidation in this business,” Prakash Schaffter, Managing Director Janashakthi Insurance PLC told the Business Times. The insurer posted a Profit Before Tax (PBT) of Rs. 1,024 million for the period under review.
According to a media statement the company’s life insurance business recorded a Gross Written Premium of Rs. 2.550 billion. “This Year on Year (YoY) growth of close to 18 per cent was a result of changes made to the life sale and distribution structure and the basis for commission payments during FY2014. The non-life business achieved a Gross Written Premium of Rs. 8.113 billion, a YoY increase of over 19 per cent. Propelled largely by the growth witnessed in its motor insurance business, this further validates Janashakthi’s position as the insurer of choice amongst motorists.” It said that, Janashakthi disbursed in excess of Rs. 5 billion as claims through the year.
“The Company’s balance sheet grew by almost 52 per cent in FY2015 to Rs. 31.694 billion, with investments of Rs. 22.346 billion accounting for 71 per cent of assets. A reflection of its strong fundamentals and commitment to stakeholders, Janashakthi’s Life Fund grew by about 20 per cent to Rs. 8.782 billion during this period.” Janashakthi acquired a 100 per cent stake in AIA General Insurance Lanka Ltd in October 2015. Janashakthi had also assigned the leasehold rights of its land on Staple Street, Colombo 2 to Sanken Contraction Ltd., for Rs. 1.93 billion the statement said. “Having received a 50 per cent advance of Rs. 965 million on 23rd December, 2015, the transaction, which is expected to be completed by 25th March, 2016 it will generate Rs. 940 million in profits for the company.”