Janashakthi Insurance PLC., (Janashakthi) recorded a 15 percent Year-on-Year (YoY) growth in consolidated Gross Written Premium (GWP) in the first nine months of 2015 to end the quarter with a consolidated GWP of over Rs.7.351 billion and Profit Before Tax (PBT) of Rs.337 million.
The company’s life insurance business posted a YoY growth of over 19 percent to realize a GWP of Rs.1.835 billion, a result of strategic changes made to the sales structure during the last financial year. The non-life business achieved a GWP of Rs.5.516 billion, a YoY increase of over 14 percent.
By the end of the quarter the insurer had honoured claims of Rs.3 billion in non-life claims and Rs.623 million in life claims. The rise in claims settlements was one of the key factors which had an effect on the company’s profits which saw a dip from the PBT of Rs.609 million reported during the same period last year to Rs.337 million.
The company’s asset base grew to Rs.23 billion during the period under review, with 72 percent of assets being held as financial investments in a balanced investment portfolio. The Life Insurance Fund recorded a 19 percent increase, growing from Rs.7.3 billion at the end of 2014 to Rs.8.7 billion as at 30th September 2015.
“Continuing ahead with the momentum gained during the first half of the year, I am pleased to report that we have posted yet another quarter of strong performance. Both life and non-life segments registered impressive top line growth. These numbers are a reflection of the business’ sound fundamentals and the trust and goodwill we have earned amongst our stakeholders,” said Prakash Schaffter, Managing Director, Janashakthi Insurance PLC.
Post the quarter performance, Janashakthi Insurance PLC., announced the acquisition of AIA General Insurance Lanka Limited for Rs.3.2 billion, further consolidating its position as the 3rd largest general insurer in Sri Lanka. The amalgamation of AIA General Insurance Lanka Limited and Janashakthi General Insurance Limited will result in the combined entity accounting for an estimated GWP of Rs.11 billion with a market share of approximately 17.5 percent.
Commenting on the acquisition, Prakash Schaffter noted, “We saw a great strategic fit in AIA’s Sri Lankan general insurance business. We strongly believe that this acquisition offers attractive growth opportunities for all stakeholders. Bringing a broader range of insurance solutions to customers, the increased scale of the business will help drive better profitability for shareholders. As we work on integrating the two units, we look forward to leveraging their synergies to drive exponential growth as we work towards achieving market leadership.”
The Board of Directors of Janashakthi Insurance PLC., comprises of W. T. Ellawala, Non–Executive Chairman; Husein Esufally, Non–Executive Deputy Chairman; Prakash Schaffter, Managing Director; Mr. Jude Fernando, Executive Director/Chief Executive Officer;. L. C. R. de C. Wijetunge, Non-Executive Independent Director; Manjula Mathews, Non-Executive Director; Ramesh Schaffter, Executive Director; Eardley Perera, Non-Executive Independent Director; and Anushya Coomaraswamy, Non-Executive Independent Director.