Janashakthi posts Rs. 503m profit in 2008

The year under review, 2008, was a milestone year for Janashakthi Insurance PLC (JIPLC), recording a formidable consolidated Rs. 503Mn profit before taxes in its very first year of converting to a Public Liability Company.

Chairman of Janashakthi Insurance PLC W.T Ellawala said, "The Company passed the noteworthy Rs. 5 billion in Gross Written Premium mark this year, while also posting good results despite an economic milieu that seemed lacklustre.

Managing Director of Janashakthi Insurance PLC Prakash Schaffter said, "Life business registered an encouraging increment of 18% to touch Rs. 1.4 Bn. However, performance of general business was not as encouraging as anticipated with a single digit increase of only 7% to reach Rs. 3.9 Bn.

It was also stated that Fire business expanded by 20% to Rs. 444 Mn, which is significant during the period under review. Investment and other income at Rs. 862 Mn though seemingly the same as in 2007 (Rs. 895 Mn) was in fact considerably higher by 36% as last year's figure included exceptional gains of Rs. 258 Mn.

The high interest rates prevalent in 2008 yielded commendable returns on our investments. Borrowing costs recorded a noteworthy decline from Rs. 233 Mn to Rs. 93 Mn this year.

The Net Profit Before Tax at Rs. 503 Mn though apparently below last year's Rs. 549 Mn is in reality a considerable improvement.