Janashakthi posts Rs. 209.5 mn profit for 2005

COMPANY RESULT: Janashakthi Insurance Co. Ltd reported a turnaround in the company’s profits to Rs. 209.5 mn for the financial year ending December 31, 2005, which is an astounding 324% growth in profitability over the previous year.

The total revenue reported is Rs. 3,863 mn up by 32.6% from Rs. 2,913 mn in 2004. Income from investments grew by 39% in 2005 to reach Rs. 766 mn.

Janashakthi General Insurance sector recorded a gross written premium of Rs. 2,888 mn, an increase of 16% over last year, with the most significant contribution being from the Motor Insurance business.

Despite fierce competition which continues to pervade this market, the company reported an increased underwriting profit of Rs. 216 mn in 2005 a commendable improvement even after discounting the impact of tsunami claims in 2004 compared to the loss of Rs. 74 mn previously.

The company’s total life business premium grew significantly by 22% to Rs. 814 mn from Rs. 666 mn the previous year, while the first year premium grew by 29%. The Life Fund increased by Rs. 254 mn in the year 2005 with the total long term insurance fund at the end of the year reaching 1.977 bn.

“We continue to vigorously address the vexatious issue of the unduly high rate of lapsation of Life Policies and have been fairly successful in our efforts to arrest this trend,” Managing Director C. T. A. Schaffter said.