Sri Lankan insurer Janashakthi this week claimed it had become the most profitable company among listed companies in this sector. This as the company cleared Rs. 145.4 million in after tax profits for the first half of 2010, mainly attributable to a 7% growth in its motor vehicle insurance business. The highest recorded amongst top industry players, it said in a statement.
The company also attributed its new status to focusing on the bottom line, offering a wide variety of products, retaining customers and timely settlement of claims equaling Rs. 2.6 billion in 2009 and Rs. 1.6 billion so far this year, during which total claims incurred had increased by Rs. 413 million when compared to the same period last year. Also revealed by the company was that its new position was earned even with a decline in after tax profits which was mainly due to "heavy claims incurred during this period in the category of natural disasters due to the recent floods where over 400 claims were intimated”.
Meanwhile, the company also said of its portfolio; "Life Insurance business grew marginally by 0.8% whereas the Non-Motor business recorded a decline of 0.4% mainly due to our consolidation efforts to make the General Insurance business profitable by discouraging loss making product lines”. In addition; "Janashakthi Insurance has the highest stated capital among public quoted insurance companies, amounting to over LKR. 1.49 Bn, which is over 7.5 times the statutory requirement. The company is also backed by a rapidly accumulated asset base of over Rs 11 billion and Rs 4.1 billion in government securities".