- Renewed focus on driving Life Insurance growth post divestment of General Insurance business
Returning to being a specialist Life Insurance company, leading Sri Lankan insurer Janashakthi Insurance PLC (Janashakthi) reported its financial results for the three month period ended 31 March.
Janashakthi had divested its General Insurance business earlier in the quarter, generating a substantial profit of Rs. 9.2 billion at a company level during the period under review. A significant portion of the proceeds from the sale was returned to shareholders in the form of a Rs. 11.7 billion share buyback, yet another reflection of Janashakthi’s commitment to its stakeholders.
Gross Written Premium (GWP) grew from Rs. 705 million to Rs. 764 million, a year on year (YoY) growth of 8%. Janashakthi also continued to stand by its policyholders, paying out Rs. 294 million in Net Benefits & Claims, a YoY growth of 5.4% over the Rs. 279 million recorded for the same period last year.
“I am happy to report that we have kicked off FY 2018 on a positive note with a steady growth in premiums,” said Janashakthi Insurance PLC Managing Director Prakash Schaffter. “This will be a year of transition for us at Janashakthi as we focus on growing our Life Insurance business into a key player in the segment. The first half of 2018 will be a period of transformation and we are optimistic that the foundations laid during the previous year together with our singular focus on Life Insurance and ongoing efforts to rebuild an efficient distribution system will strengthen the Company and yield results in the future.”
Investment income grew by 26% YoY, from Rs. 325 million to Rs. 408 million. This was aided largely by Janashakthi’s prudent reinvestment of the sales proceeds in short term securities until the share buyback was completed. The total assets of the Company stood at Rs. 18.5 billion due to the share buyback, wherein substantial revenue reserves of the Company were returned to shareholders with its completion in March 2018.
“This year is truly a year of change for us at Janashakthi, and we are eager to strongly establish our fundamentals to set up a robust Life Insurance business. Having embarked on restructuring our Life distribution network in 2017, we are reviewing our branch network and re-aligning our presence in the marketplace post the exit from the General Insurance segment. We hope that this, together with the renewed focus on the Life segment, will help us strengthen our core to deliver business growth in the coming year,” said Janashakthi Insurance PLC Director/Chief Executive Officer Jude Fernando.
Speaking on behalf of the leadership of the Company, Prakash Schaffter added, “As we bid adieu to a significant part of the Janashakthi family and embark on the next phase of our growth story, I would like to express our gratitude to everyone who has been a part of the Janashakthi journey, contributing towards the progress of the Company.”
The Board of Directors of Janashakthi Insurance PLC comprises Husein Esufally, Chairman; Prakash Schaffter, Managing Director; Jude Fernando, Chief Executive Officer; Ramesh Schaffter; L.C.R. de C. Wijetunge; Anushya Coomaraswamy; Manjula Mathews; and Eardley Perera.
Founded in 1994 as a Life Insurance company, Janashakthi Insurance PLC made its mark in the industry as an innovator and household name over a span of over 23 years. Janashakthi has a strong presence across the island, with an expanding Life Insurance network and a dedicated call centre. In line with its vision of lighting the lamp of insurance in every home and workplace, Janashakthi remains committed to becoming a leader in the Life Insurance industry by delivering a service beyond Insurance to its customers and stakeholders.