Janashakthi posts highest ever 62% stellar growth

Janashakthi Insurance PLC posted record profits for the year 2012, hurdling over the Rs 8 billion mark to Rs 8.26 billion in total net income. Stringent cost control coupled with the company’s strategy of prudent underwriting resulted in record profit of after tax of Rs 800 million.

This reflected an accelerated growth of 62% that shows the company’s gathering momentum in market dominance.

This result is amplified against one of the toughest years for motor vehicles with shrinking imports, depreciated exchange rates and higher interest rates. Despite the increases in vehicle import duty which saw vehicle registrations recede by 40%, motor insurance topped Rs 4 billion growing by 14%. Underwriting profits rose to Rs 2130 million reflecting an 11% growth.

The results are a testament to Janashakthi’s consistent service delivery and tenacity within this highly competitive market, its performance in the motor segment and capitalisation levels deeply reflecting upon its long term stability and strength which are cornerstones to dominance in the insurance market.

Chairman W.T Ellawella commenting on the company’s performance, dwells on the macro issues and challenges of driving hard for business growth and yet doing it right.

“At Janashakthi, corporate governance is about engendering trust and hence about effective, transparent and accountable governance of the enterprise by the management including the Board, the highest governing body.”

Janashakthi’s performance in 2012 is more than ever, a reflection of the growing strength of its sales force and its continuous focus on market responsiveness and service excellence. Janashakthi continues to be a leader in its most profitable segments of private cars, motor cycles, three wheelers and dual purpose vehicles in which it continues to record considerable success during the year,” Prakash Schaffter, Managing Director, Janashakthi Insurance said.

Janashakthi’s overall competitive position is strengthened by the company’s market presence and geographically extensive 100 plus branch-network, its 273 motor assessors based island wide and unique to category Auto Centre, and 24 hour Call Centre.

Janashakthi Insurance PLC has served the nation for 18 years, and continues to shine in Sri Lanka’s insurance sector. Janashakthi has an exceptional track record of financial stability and claim settlement, with Rs 15.8 billion in assets and over Rs 7.9 billion in annual gross written premiums. Janashakthi has paid over Rs 20 bn in claims to its policyholders to date from inception. The company also upped its game-reducing exposure to non-profitable segments such as health in non-motor and migrating to conventional life insurance products despite the low hanging fruit of market growth potential in these segments..

Janashakthi continues to reflect a very healthy stated capital structure of Rs 1.4 bn which is over seven times the required level of capital for its business operation. “We have the highest stated share capital of any listed insurance company. 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”, Schaffter added.

The announcement mid last year on an interim dividend placed Janashakthi asNo 1ÿin the category in maintaining the highest dividend yield in recent years. The company has recorded stellar growth in all areas of non-life insurance and is focusing on developing the range of its products for the life segment to ensure that the company provides unmatched products for the differing needs of the Sri Lankan consumer. Its Life Unlimited product, for instance, was the first and only product anywhere in the world to offer hospitalisation cover even after the policy matures till the death of the policyholder.

Janashakthi Life Saver product recently launched has taken the retirement market by storm with its game changing cornucopia of features taking on the Herculean task of grappling with a national crisis as Sri Lanka now has one of the fastest growing ageing demographics in Asia. The need for really pushing for a true safety net product that both saves and protects was the brainchild of founder and Deputy Chairman Chandra Schaffter, recently awarded the highly prestigious Asian Lifetime Achievement award for the immense contribution he has made to the Asian Insurance industry.

This year Janashakthi entered into agreements with both Commercial Bank and Union Bank for bancassurance providing customer’s convenient access to a multitude of Janashakthi’s insurance solutions for individuals and corporates.

Janashakthi has also been expanding its already widespread branch network and has a growing market segment in rural Sri Lanka, most recently with significant growth in the north and east, opening a new branch in Mullaitivu and upgrading the Chavakachcheri office.

The company’s stellar performances across the board need to be taken in the context of the company’s continuing commitment towards social responsibility initiatives and the values of inclusivity.