New life policies boost Janashakthi Insurance second quarter

Janashakthi Insurance PLC saw its premium incomes continuing its ascent during the three months ended in June (2Q21), specially from new life policies, as the uncertainties brought about by the pandemic since last year, set off a robust demand for life insurance policies.

Janashakthi Insurance saw its Gross Written Premiums (GWPs) during the April - June quarter rising by a robust 43.3 percent to Rs.1.16 billion from the same period in 2020, led mostly by the first year premium incomes, reflecting the increased level of new life policies that were sold during the period. 

For instance, the first year premiums nearly doubled to Rs.698.1 million between the two quarters, while the policy renewal income did little change at Rs.465.8 million in the June quarter from a year ago level. 

Meanwhile, during the six months ended in June 2021, the company increased their GWPs by a robust 44.8 percent to Rs.2.4 billion, of which Rs.1.4 billion came from first year premiums, which rose by an exponential 79.7 percent from a year ago. 

The pandemic and its conditions in fact augured positively for the life insurance business with the absence of well funded socially security schemes in the country. However, the growth fortunes of the general insurance sector turned sour with the complete banning of motor vehicle imports and the resulting restrictions, while the impaired business incomes weighed on non-motor classes of insurance. 

Meanwhile, Janashakthi Insurance paid claims and benefits worth of Rs.458.3 million in the three months, up 40.2 percent from a year ago.  The company reported earnings of 41 cents a share or Rs.92.1 million for the April - June quarter compared to 96 cents a share or Rs.216.4 million in the corresponding period last year. 

By June 30, 2021 Janashakthi PLC and affiliated entities of the Schaffter family-owned Janasjakthi group, held 80 percent stake in Janashakthi
Insurance PLC.