Janashakthi posts record profits with highest-ever 62% stellar growth

Janashakthi Insurance PLC posted record profits for 2012, hurdling over the Rs. 8 b mark to Rs. 8.26 b in total net income. Stringent cost control coupled with the company’s strategy of prudent underwriting resulted in record profit of after tax of Rs. 800 m. This reflected an accelerated growth of 62% that shows the company’s gathering momentum in market dominance.

This result is amplified against one of the toughest years for motor vehicles with shrinking imports, depreciated exchange rates and higher interest rates. Despite the increases in vehicle import duty which saw vehicle registrations recede by 40%, motor insurance topped Rs. 4 b growing by 14%. Underwriting profits rose to Rs. 2,130 m, reflecting an 11% growth.

The results are a testament to Janashakthi’s consistent service delivery and tenacity within this highly competitive market, its performance in the motor segment and capitalisation levels deeply reflecting upon its long term stability and strength which are cornerstones to dominance in the insurance market.

Chairman W.T Ellawella commenting on the company’s performance said: “At Janashakthi, corporate governance is about engendering trust and hence about effective, transparent and accountable governance of the enterprise by the management, including the Board, the highest governing body.”

“Janashakthi’s performance in 2012 is, more than ever, a reflection of the growing strength of its sales force and its continuous focus on market responsiveness and service excellence. Janashakthi continues to be a leader in its most profitable segments of private cars, motor cycles, three wheelers and dual purpose vehicles in which it continues to record considerable success during the year,” Prakash Schaffter, Managing Director, Janashakthi Insurance stated.

Janashakthi’s overall competitive position is strengthened by the company’s market presence and geographically extensive 100 plus branch-network, its 273 motor assessors based island wide and unique to category Auto Centre, and 24 hour Call Centre, all of which reflect the strong emphasis on service exceptionalism that transcends its pledge of service excellence.

Janashakthi Insurance PLC has served the nation for 18 years, and continues to shine in Sri Lanka’s insurance sector. Janashakthi has an exceptional track record of financial stability and claim settlement, with Rs. 15.8 b in assets and over Rs. 7.9 billion in annual gross written premiums. Janashakthi has paid over Rs. 20 b in claims to its policyholders to date from inception.

The company also upped its game-reducing exposure to non-profitable segments such as health in non-motor and migrating to conventional life insurance products despite the low hanging fruit of market growth potential in these segments.

Janashakthi continues to reflect a very healthy stated capital structure of Rs. 1.4 b, which is over seven times the required level of capital for its business operation. “We have the highest stated share capital of any listed insurance company. Insurance is a long-term business and the stated share capital gives a strong signal of commitment and stability to stakeholders of the sustainability of the business,” Schaffter added.

The Board consists of W.T. Ellawala (Chairman), C.T.A. Schaffter (Deputy Chairman), Prakash Schaffter, L.C.R. de C. Wijetunge, Manjula Mathews, Deshamanya Dr. Nihal Jinasena, Ramesh Schaffter, Eardley Perera and Anushya Coomaraswamy.