Janashakthi in strong performance

Janashakthi Insurance PLC recorded another strong performance at the half year in 2012 and has announced a dividend of 1 rupee per share. The company raises the bar in its dividend yield and continues to maintain the highest stated capital structure.

The dividend improves on the previous years high, delivering a 9.25 % for 2012 versus 6.25 % and 6.67 % for 2011 and 2010 respectively. The 2012 dividend helps Janashakthi retain its position as the insurer with the highest dividend yield in recent years. “Insurance is a long term business and the stated share capital gives a strong signal of commitment and stability to stakeholders of the sustainability of the business,” Managing Director Prakash Schaffter said. During the first six months ended June 30 the Profit After Tax amounted to Rs164 million. Total assets rose from Rs 13 billion to Rs 14 billion and the company was able to record a 14 % growth rate in its combined Gross Written Premium (GWP) of Rs 3.8 billion.

“Janashakthi has recorded a stellar performance and has been consolidating the company's products and services to provide our valuable customers an even better quality of service than we have done in the past. We have paid out a high amount on claims and this is indicative of our commitments to our customers in their time of need. It looks like Janashakthi has recorded the highest profit after tax amongst the peer group of insurance companies. This is a consistent performance in keeping with the company’s performance in the prior year, where the company again had the best results for profit after tax as at the half year mark,” said Bertal Pinto-Jayawardene, General Manager – Finance and Planning.

“Janashakthi continues to reflect a very healthy stated capital structure in having nearly 8 times the required level of capital for its business operation.

We have the highest stated share capital of any listed insurance company by a long chalk. Insurance is a long term business and the stated share capital gives a strong signal of commitment and stability to stakeholders of the sustainability of the business.” added Schaffter. The net earned premium of Janashakthi was Rs 3.2 billion and the Life Fund rose by 10 % from Rs 4.7 billion to Rs 5.2 billion.