Advertise here

A Stellar Performance By Janashakthi – Prakash Schaffter

Janashakthi Insurance has surpassed a milestone of achieving Rs. 1 billion profit after tax, which is a significant first time achievement by the company, said Prakash Schaffter, Managing Director of the company last week.

Addressing a media briefing held at the Jaic Hilton, he described the achievement as a stellar performance and said that the performance, together with its impressive consolidated revenue, is most creditable given the intensely competitive nature of Sri Lanka’s insurance industry.

“It is also significant that the Non Motor segment did significantly well within the industry – proof positive of our strength in this segment,” he added.

Janashakthi is a classic case of local entrepreneurship. The humble beginnings were in 1994 with about 40 staff at Staple Street in Colombo 2.

The first year’s revenue was just around Rs. 40 million, very small figure indeed. Today there are 112 branches island-wide with 3,000 staff and the revenue is close to Rs. 10 billion. We have a customer base in access of 700,000 customers, the MD noted.

Janashakthi Insurance reached its highest ever consolidated revenue of Rs. 9.9 billion reflecting 20% growth, stemming from attractive returns generated from Janashakthi’s solid investment. Building on this strong performance, Janashakthi Insurance was able to deliver 22% Return on Equity to its shareholders, as well as a net asset per share of Rs. 12.48, reflecting a 34% year on year growth. This strong growth with highest Profit After Tax of Rs. 1 billion and largest recorded customer base of 700,000 customers, has placed the company in a stellar position to meet the impending regulatory split.

The company achieved these results while honouring over Rs. 4.4 billion in claims over the past year alone. This was validated by the company’s claim paying ability being upgraded to A by RAM Ratings.

Janashakthi also reported a total asset base of Rs. 18.6 billion, while its stated capital of Rs. 1.49 billion is the highest in the category. In addition, the company achieved Rs. 8.7 billion GWP, more than 75% of which is made up of non-life premiums, reflecting the company’s renewed focus on diversification.  The Life segment increased by 8.3% to reach Rs. 2.19 billion, while non life business contributed Rs. 6.5 billion to revenue, an increase of 10% compared to the previous year.

The Solvency margin of Janashakthi’s Life insurance increased from 440% of the required margin level has increased to 710% by year end, 2013.

Total Assets of the Company have reached LKR 18.65 billion in 2013 from that of LKR 15.84 billion in 2012. The Non Motor segment in particular posted a commendable growth of 15% well above the industry standards for growth during the year, with the Fire, Marine and Miscellaneous sub categories setting a benchmark for the entire industry in 2013.

The managing director also said that “Janashakthi would continue its strategy of sustainable growth, focusing on growing market share without compromising on the quality of the business accepted”.

In terms of innovation, Janashakthi remained a pioneer, launching a new Worldwide Travel Insurance scheme which included access to a 24-hour global hotline. The company also partnered with Dialog eZ Cash, allowing customers to purchase insurance policies via their mobile phones.

Janashakthi’s Board of Directors includes a mix of gender and a proper mix of Independent and Non Independent Executive Directors. The Board of Directors consists of W. T. Ellawala, C. T. A. Schaffter,  Prakash Schaffter, Eardley Perera, Dr Nihal Jinasena, L. C. R de C. Wijetunge, Ramesh Schaffter, Mrs. Anushya Coomaraswamy and Ms. Manjula Matthews.

Comments are closed

advertise

Photo Gallery

Log in | Designed by Gabfire themes