Janashakthi Insurance’s general business grows while life remains flat
View(s):Janashakthi Insurance PLC (Janashakthi), registering steady double digit growth in premiums through FY 2017, posted a consolidated Gross Written Premium (GWP) of Rs. 15.115 billion for year ending December 2017, a year on year (YoY) growth of 11 per cent.
The Non-Life or General Insurance business grew by 14 per cent to end the year with a GWP of Rs. 12.212 billion, while the Life Insurance business remained flat recording a GWP of Rs. 2.903 billion, the company said in a media release.
Paying out claims to the total of Rs. 7.317 billion during the period under review, Janashakthi said it upheld its commitment to stand by its policyholders during times of distress. The more than 9 per cent YoY increase in claims settlements was a result of the rise in the number of flood-related fire and engineering claims, as well as a spike in medical claims due to the dengue epidemic.
Janashakthi Insurance PLC reported its consolidated full year results for the final time, as the company recently entered into an agreement with Allianz SE to sell 100 per cent of its fully owned subsidiary Janashakthi General Insurance Limited. Speaking on the company’s performance, Managing Director, Prakash Schaffter stated, “We have been able to maintain our steady growth momentum despite a considerable rise in claim settlements thanks to our strong fundamentals and prudent reinsurance structure. The year 2018 will be a year of change resulting from the divestment of the Non-Life business. We are optimistic that the opportunities arising from a singular focus on the Life Insurance business, coupled with the opportunity of rebuilding an efficient distribution system, will strengthen our presence in the Sri Lankan Life Insurance industry”.
The transaction between Janashakthi Insurance PLC and Allianz SE will yield a capital gain in the hands of Janashakthi Insurance PLC and it is expected that the company would undertake a substantial share buyback as a means of transferring capital back into the hands of shareholders.