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, the insurer said in a statement.
"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 in 30th June the Profit After Tax amounted to LKR 164 million. Total assets rose from LKR 13 billion to LKR 14 billion and the Company was able to record a 14% growth rate in its combined Gross Written Premium (GWP) of LKR 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," stated 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." further added Prakash Schaffter.
"The net earned premium of Janashakthi was LKR 3.2 billion and the Life Fund rose by 10% from LKR 4.7 billion to LKR 5.2 billion. The Company also recorded a 10% growth in revenue from LKR 3.4 billion to LKR 3.7 billion and marked a motor sector growth of 18% in GWP which rose from LKR 1.7 billion to LKR 2.1 billion.
"The Company has recorded a stellar growth in all areas of general insurance and is focusing on developing the range of our products for the life segment to ensure that the Company provides unmatched products for the differing needs of the Sri Lankan consumer. Their Life Unlimited product, for instance, was the first and only product anywhere in the world to offer hospitalisation cover even after the policy matures. The Company has also controlled cost and maintained healthy underwriting profits. The Company has also controlled cost and maintained healthy underwriting profits.
"This year Janashakthi entered into agreements with both Commercial Bank and Union Bank for bancassurance - providing customers convenient access to a multitude of Janashakthi’s insurance solutions for individuals and corporates. Janashakthi has also been expanding its already widespread branch network with significant growth in the North and East, opening a new branch in Mullativu and upgrading the Chavakachcheri office.
"Janashakthi has a widespread branch network in all corners of the nation and has a growing market segment in rural Sri Lanka. The company’s stellar performances across the board needs to be taken in the context of the company’s continuing commitment towards social responsibility initiatives. The rural athletes sponsorship program needs to be highlighted as the consistent of the company over the years in this sphere. It paid off when the only female medalists for Sri Lanka at the Junior Asian Athletic Championship were athletes sponsored by Janashakthi.
"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. It has the highest stated capital of LKR 1.49 billion among quoted insurance companies in Sri Lanka, with LKR 14 billion in assets and over LKR 7 billion in annual gross written premiums. Janashakthi has paid over LKR 20 billion in claims to its policy holders."
Janashakthi’s Board has established internal control systems, including a comprehensive risk identification, measurement and mitigation process. The composition of the Board is exemplary on many fronts, providing a proper balance of non-executive independent directors and due gender diversity. The Board consists of W. T. Ellawala (Chairman), C. T. A. Schaffter (Deputy Chairman), Prakash Schaffter, L. C. R. de C. Wijetunge, Manjula Mathews, Deshamanya Dr. Nihal Jinasena, Ramesh Schaffter, Eardley Perera and Anushya Coomaraswamy.