Most profitable first half for Janashakthi Insurance

Janashakthi Insurance PLC (JIPLC) has become the most profitable insurer among the all quoted insurance companies. Janashakthi recorded a profit after tax of Rs 145.4 million for the first half 2010.

Prakash Schaffter

This is a remarkable achievement, given the nature of the industry which has 19 players competing.

Janashakthi Insurance Managing Director Prakash Schaffter said they have managed to record the highest profit quantum irrespective of fierce competition in the market with a large number of players and challenging economic conditions.

“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 Rs 2.6 billion in 2009 and Rs 1.6 billion during the first half of 2010. The total claims incurred have increased by Rs 413 million as against the same period of last year,” Schaffter 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 seven percent which is the highest growth among the top three players in the motor insurance market in revenue.