Janashakthi says flood claims more than tsunami
View(s):Janashakthi Insurance PLC (Janashakthi) says that the floods that affected the country in the past two weeks will see them pay claims more than during the time of the tsunami some 12 years ago. Prakash Schaffter, Managing Director, Janashakthi told the Business Times that his estimate for the payout is Rs. 1.5 billion to Rs. 2 billion. “This is the number we anticipate and we are confident that we can settle these claims without any financial stresses.
During the tsunami the company paid a total of Rs, 5 billion in claims but the majority of them were in the Maldives while in Sri Lanka it was less than Rs. 2 billion. Janashakthi which reported a consolidated Profit After Tax (PAT) of Rs. 358 million for the quarter ended 31st March 2016, a marked Year on Year (YoY) growth of 236 per cent disbursed claims in excess of Rs.1.543 billion, including claims pertaining to the acquired entity during the 1Q16. “This 44 per cent YoY rise in claims is a reflection of the company’s resolve to honour its commitments to policy holders,
Mr. Schaffter said. The company’s Non-Life or General Insurance business grew by a robust 43 per cent, recording a Gross Written Premium (GWP) of Rs. 2.7 billion. “This was largely driven by the merger of operations of newly acquired former AIA General Insurance Lanka Ltd with Janashakthi General Insurance Ltd, which was completed by the end of January 2016. The Life Insurance business delivered a GWP of Rs.0.61 billion, a YoY increase of 0.52 per cent,” a company media release said. - DEC