Janashakthi reports Rs.1.02bn PBT for FY15

Janashakthi Insurance PLC (Janashakthi) reported a consolidated gross written premium (GWP) of Rs.10.664 billion for the year ended December 31, 2015, a growth of approximately 19 percent over the same period in 2014, the company said in a press release.

The insurer posted a profit before tax (PBT) of Rs.1.02 billion for the period under review. The company’s life insurance business recorded a GWP of Rs.2.550 billion.

This yearon- year (YoY) growth of close to 18 percent 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 GWP of Rs.8.113billion, a YoY increase of over 19 percent.

Propelled largely by the growth witnessed in its motor insurance business, this further validates Janashakthi’s position as the insurer of choice amongst motorists. Honouring its commitment to policyholders, Janashakthi disbursed in excess of Rs.5 billion as claims through the year. The company’s balance sheet grew by almost 52 percent in FY2015 to Rs.31.694 billion, with investments of Rs.22.346 billion accounting for 71 percent of assets.

A reflection of its strong fundamentals and commitment to stakeholders, Janashakthi’s Life Fund grew by about 20 percent to Rs.8.782 billion during this period. In a bid to strengthen its position in the general insurance segment, Janashakthi acquired a 100 percent stake in AIA General Insurance Lanka Limited in October 2015.

Having closed the financial aspects of the Rs.3.2 billion acquisition on October 23, 2015, Janashakthi completed its amalgamation with Janashakthi General Insurance Limited on January 29, 2016. “2015 has indeed been a momentous year for us at Janashakthi. Both life and nonlife businesses posted outstanding top line growth while honouring our commitment to policyholders.

The year also saw us further consolidate our position in the general insurance segment with the acquisition of AIA General Insurance Lanka Limited. With the amalgamation now complete, we are working on unveiling a host of innovative insurance solutions.

With the promise of exciting times ahead, we look forward to delivering greater value to all stakeholders as we advance towards market leadership,” said Janashakthi Insurance PLC Ma n a g i n g D i r e c t o r Prakash Schaffter. Janashakthi had also assigned the leasehold rights of its land on Staple Street, Colombo 2 to Sanken Construction Ltd, for Rs.1.93 billion.

Having received a 50 percent advance of Rs.965 million on December 23, 2015, the transaction, which is expected to be completed by March 25, 2016, it will generate Rs.940 million in profits for the company. The Janashakthi Insurance PLC board of directors comprises Non–Exe cut ive Cha i rman W.T. Ellawala, Non–Executive Deputy Chairman Hu s e i n Esufally, Managing Director Prakash Schaffter, Executive D i r e c t o r / C h i e f E x e c u t i v e Officer Jude Fernando, Non- Executive Independent Director L.C.R. de C. Wijetunge, Non- Executive Director Manjula Mat h ews, Non–Ex e c u t i v e Director Ramesh Schaffter, Non-Executive Independent Director Eardley Perera and Non- Executive Independent Director Anushya Coomaraswamy.