Composite insurer Janashakthi Insurance PLC recorded a net profit of Rs.106.3 million for the March quarter (1Q15), down 32 percent from a year ago, the interim financial accounts released to the Colombo stock Exchange showed.
The basic earnings per share deteriorated to 29 cents from 43 cents.
The bottom line was affected by fair value losses, which rose to Rs.70 million from Rs.10 million and higher benefits and claims paid, compared to the corresponding quarter of the previous year.
The gross written premium (GWP) for the quarter under review rose 2.5 billion from Rs.2.2 billion a year ago.
The GWP of life insurance operations improved to Rs.605 million from Rs.514 million while general insurance GWP increased to Rs.1.9 billion from Rs.1.68 billion.
The investment income fell to Rs.325 million from Rs.389 million.
The total benefits, claims and net acquisition cost for the quarter rose to Rs.1.7 billion from Rs.1.63 billion.
Janashakthi in March 2014 established a new entity Janashakthi General Insurance Limited in March 2014 with an initial outlay of Rs.100 million to spin off its non-life business to conform with regulator’s requirement for the segregation of life and non-life business units.
Following this move Janashakthi Insurance PLC is now a life insurance company while Janashakthi General Insurance Limited is a licensed general insurance company 100 percent owned by Janashakthi Insurance PLC.