Janashakthi records Rs. 1 b profit, Rs. 8.9 b GWP despite challenging conditions

• Pays Rs. 4.6 b in claims

Janashakthi Insurance PLC said yesterday it recorded profit before tax in excess of Rs. 1 billion as of 31 December 2014, showing healthy growth amidst regulatory change in the insurance sector. As the company celebrated two decades of existence, Janashakthi posted a Gross Written Premium of Rs. 8.9 b as of 31 December 2014, compared to Rs. 8.7 b in the previous year. The Gross Written Premium of Non-Life Insurance segment of the company was Rs. 6.8 b compared to Rs. 6.5 b previous year. This is a 4% year on year growth in the Non-Life Insurance Business. This growth has been achieved mainly due to significant contribution made by the Non Motor Business sector. Janashakthi performed exceptionally well in the Non Motor segment, with the company recording 14.47% growth, particularly impressive considering that overall industry growth was 1.47%. The Motor business in particular performed well in the latter part of the year, growing even in an industry which saw sluggish growth. Janashakthi’s assets base grew to Rs. 20.8 b compared to Rs. 18.6 b, an impressive feat given prevailing industry conditions. Net assets per share rose to Rs. 14.34 compared to Rs. 12.48 the previous year indicating the sustainable value creation by the company towards its stakeholders. This performance was achieved despite honouring Rs. 4.6 b in claims. Prompt claims management and disbursement has proved critical in establishing brand equity, ensuring Janashakthi remains a major player in the segment. This also showcases Janashakthi’s commitment towards its customer base, even amidst challenging conditions. This growth was reflected in Janashakthi’s share prices. Market price per share showed strong growth at Rs. 23.20 compared to Rs. 12.70 the previous year, reflecting market confidence in the brand. Earnings per share also rose to Rs. 2.92 compared to Rs. 2.77 as of 31 December 2013. The company saw a period of transition, with life insurance operations undergoing major structural changes to meet regulatory requirements. This impacted sales growth in the life segment, but the segment is anticipated to show healthy growth in 2015. As a result of these structural changes which took place in the first half of the year, the sector has already achieved a healthy growth in the latter part of 2014. Janashakthi Insurance continues to reflect a very healthy capital structure and has one of the highest paid up share capitals of any listed insurance company. Building on its strong balance sheet, the company sees opportunities for growth through mergers and acquisitions in the future. Janashakthi has consistently been a first-mover in terms of innovation, introducing revolutionary new products such as Easy Claim, allowing customers to collect their claim payments from an ATM. Their network extends islandwide, with customers being able to visit any one of their 109 branches for a comprehensive service. Janashakthi’s strong performance was recognised with the company winning several awards. These included coveted two Gold awards for Business Excellence in Insurance and Excellence in Capacity Building at the National Business Excellence Awards. In the international arena, the Company also won the Global Brand Sustainability Award at the Global Awards for Brand Excellence and for Brand Excellence in the banking, financial services and insurance sector at the fifth CMO Asia Awards.