Janashakthi posts Rs 8.26 bn total net income in 2012

Janashakthi Insurance PLC offers the highest dividend yield among other local insurance, making the stock an attractive investment for stock market investors, officials said.

For the year ended March 31, 2013 the company paid out an annual dividend yield of 9.52 percent, the highest among insurers.

“We always look to maximise returns to our shareholders, who have placed their faith in our company, At the price point, our stock is quite affordable for even small to midsize investors looking to add value to their equity investment portfolios,” Prakash Schaffter, Managing Director of Janashakthi Insurance said.

Janashakthi Insurance PLC. moved up to the main board of Colombo Stock Exchange in April this year. “Janashakthi continues to reflect a very healthy stated capital structure of Rs 1.4 billion 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,” added Schaffter.

The share price currently trades at around Rs. 12 as against insurance peers whose counters are priced several times higher. Strangely while Janashakthi has stayed below the radar as a hot stock pick it has consistently topped the category in dividend returns in recent years.

The company’s competitive edge is maintained through its extensive 100 plus branch-network, its islandwide network of 273 motor assessors and their own unique to category Full option Auto Centre, and 24 hour Call Centre.

Janashakthi Insurance PLC posted record profits for 2012, vaulting 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 after tax of Rs 800 million. This reflected an accelerated growth of 62%, that shows the companies gathering momentum in market dominance.

Janashakthi Insurance PLC has served the nation for 18 years, and continues its growth trajectory 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 billion in claims to its policyholders to date from inception. Janashakthi’s Board has established internal control systems, including a comprehensive risk identification, measurement and mitigation process.