Janashakthi Insurance, the most profitable insurer in 1st half 2010

Janashakthi Insurance PLC (JIPLC) has become the most profitable insurer among the all quoted insurance companies. Janashakthi recorded a Profit after Tax of LKR 145.4 Mn for the first half 2010. This is a remarkable achievement, given the nature of the industry which has 19 players competing.

Managing Director of Janashakthi Insurance PLC, Prakash Schaffter said, “Irrespective of fierce competition in the market with a large number of players and challenging economic conditions, we have managed to record the highest profit quantum”.

“This was mainly due to the company’s strategy to focus on the bottom-line while offering a wide array of insurance products and services with unmatched benefits to policyholders, exceptional service standards which helped us to retain our existing customers, together with timely settlement of claims which amounted to over LKR 2.6 Bn in 2009 and LKR 1.6 Bn during the first half of 2010. The total claims incurred have increased by LKR 413 Mn as against the same period of last year”, he said.

The Managing Director further said, “Compared to the same period of 2009 the company has experienced a decline in Profit after Tax in spite of being the most profitable listed insurer. This was a result of heavy claims incurred during this period in the category of natural disasters due to the recent floods where over 400 claims were intimated”.

“During the review period our flagship brand Janashakthi Full Option has shown a steady growth of 7% which is the highest growth among the top 3 players in the motor insurance market in revenue. The company’s Life Insurance business grew marginally by 0.8% whereas the Non-Motor business recorded a decline of 0.4% mainly due to our consolidation efforts to make the General Insurance business profitable by discouraging loss making product lines”.

“Our proven track record undoubtedly enabled us to build confidence among the general public. Janashakthi Insurance has the highest stated capital among Public Quoted Insurance Companies, amounting to over LKR. 1.49 Bn, which is over 7.5 times the statutory requirement. The company is also backed by a rapidly accumulated asset base of over LKR 11 Bn, LKR 4.1 Bn in government securities and is the only insurer to acquire a state-owned insurance company. Janashakthi Insurance PLC also has an extensive Island wide branch network of over 100”, Schaffter added.

General Manager Sales & Marketing Ravi Liyanage said, “During the year 2010, our focus will be to extend the benefits of our flagship brands such as Janashakthi Full Option, Janashakthi Life Unlimited, Janashakthi Awaranaya and further introduce a number of innovative products in keeping with the current economic and consumer preferences. Janashakthi will further enhance the deployment of technology to enable faster service delivery and to empower our sales force to serve our customers better”.