Responding positively to regulatory reforms, Janashakthi Insurance recorded a 13.4% growth in the first quarter, after setting up a new entity known as Janashakthi General Insurance Ltd. The new entity, which commenced......operations on the 1st of January, 2015, handles the Non-Life Insurance business. The parent company Janashakthi Insurance PLC, will act as the holding company engaging in the Life Insurance business.
Commenting on the performance for the first quarter of 2015, Janashakthi Insurance CEO, Jude Fernando said "At the end of first quarter Janashakthi delivered a Gross Written Premium of Rs.2.5Bn adding nearly 300Mn to GWP vs first quarter of 2014. This is a healthy start for the company and we hope to continue on this growth momentum"
The GWP of Janashakthi General Insurance Ltd, (the Non-Life Insurance segment) was Rs.1.9Bn compared to Rs.1.7Bn in the previous year, reflecting an overall growth of 12.0%. The changes made within the Life Insurance segment in 2014, has shown positive results. This is further validated with the Life insurance business recording a GWP of Rs.605Mn, growing the portfolio by 17.8% in first quarter 2015.
In addition, the company managed to pay out Rs.1.1Bn in claims as of Q1 2015, an impressive achievement given the prevailing market conditions. Total Assets of the Company have crossed Rs.21.1Bn as at end of the first quarter 2015.
Janashakthi Insurance PLC Managing Director, Prakash Schaffter commented on profit delivery by saying "The Group has posted a consolidated net profit of LKR 106Mn during the quarter ended 2015 in comparison to LKR 156Mn in the same period last year. The drop in profit was mainly due to the market to market loss of LKR 71Mn accounted during the period under review. However the subsequent bullish run of stock market enabled the company recover from this position. We are confident of improved performance in the future."
Janashakthi continued to build its brand equity and awareness in Q1 2015 by driving product innovations. The Launch of the Easy claim product in March 2015 has helped build a positive brand awareness and confidence amongst consumers. Easy Claim is a unique proposition that allows the customers to withdraw claim payments from an ATM without any delay.
The company continues to be true to its values by giving back to society through the numerous CSR activations. Such an activation rolled out early this year was the road safety project that was initiated in Unwary Eliya along with the island wide road safety messaging project.
The cornerstone to Janashakthi's exceptional performance is its people and their strong commitment and response to market needs, which will continue and grow stronger in the year 2015.
Courtesy: Ceylon Financial Times 22 May 2015