"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 percent, motor insurance topped Rs. 4 billion growing by 14 percent. Underwriting profits rose to Rs. 2,130 million reflecting an 11 percent 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."
"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 stated.
Janashakthi has an exceptional track record of financial stability and claim settlement, with Rs. 15.8 billion in assets and over LKR 7.9 billion in annual gross written premiums. Janashakthi has paid over Rs. 20 billion 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 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", Schaffter added.
The announcement mid last year on an interim dividend placed Janashakthi as No 1 in the category in maintaining the highest dividend yield in recent years, the insurer said.
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.