Janashakthi tops insurance sector in dividend returns to shareholders

Janashakthi Insurance PLC offers the highest dividend yield among other local insurance, making the stock an attractive investment for stock market investors, officials said.

For the year ended 31 March 2013, the company paid out an annual dividend yield of 9.52%, the highest among insurers.

“We always look to maximise returns to our shareholders, who have placed their faith in our company, At the price point, our stock is quite affordable for even small to midsize investors looking to add value to their equity investment portfolios,” Prakash Schaffter, Managing Director of Janashakthi Insurance said. Janashakthi Insurance PLC moved up to the main board of Colombo Stock Exchange in April this year. “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,” added Schaffter. The share price currently trades at around Rs. 12 as against insurance peers whose counters are priced several times higher. Strangely while Janashakthi has stayed below the radar as a hot stock pick, it has consistently topped the category in dividend returns in recent years. The company’s competitive edge is maintained through its extensive 100 plus branch-network, its islandwide network of 273 motor assessors and their own unique to category Full Option Auto Centre, and 24 hour Call Centre.  Janashakthi Insurance PLC posted record profits for the year 2012, vaulting over the Rs. 8 billion 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 after tax of Rs. 800 m. This reflected an accelerated growth of 62%, that shows the companies gathering momentum in market dominance.

Janashakthi Insurance PLC has served the nation for 18 years, and continues its growth trajectory 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.

Janashakthi’s Board has established internal control systems, including a comprehensive risk identification, measurement and mitigation process. The composition of the Board is exemplary on many fronts, providing a proper balance of non-executive independent directors and gender diversity.
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.

Janashakthi recently further upped its game in corporate reporting and received a platinum award from the League of of American Communications Professionals (LACP) for their Annual Report, ‘A Transformative Spirit’. JIPLC was also recognised previously by the Institute of Chartered Accountants and South Asian Federation of Accountants for the 2011 Annual Report and was recognised by the Chamber of Commerce for their CSR initiative of supporting Rural Athletes and was recognised by ACCA for Corporate Governance practices and disclosures.