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The Janashakthi Insurance Company Limited (JICL) has bought the remaining 39% of the National Insurance Corporation Ltd. for Rs. 287.5 million. Now Janashakthi has the full control of the NICL. JICL acquired a 51% stake of NICL for Rs. 450 million in June 2001. The government continued to retain 49% inclusive of 10% share holding of the NICL employees. Following the initial acquisition, Janashiakthi managed to buy almost the entire employee share holding as well. The relevant agreement was signed between PERC and JICL at the Treasury on August 29. The two companies will be amalgamated.

NICL commenced business in 1980 as a solely government owned corporation. The NICL by the time of the acquisition in June 2001 by Janashakthi, had around 100,000 customers served by 725 employees, 800 agents and 30 branches in provincial towns, due to a stimulated growth since 1994. Full control of NICL provides further scope for growth and improvement in all insurance activities of both companies.

C.T.A. Schaffter, the Managing Director said "the combined agency forces of JICL and NICL are also substantial and their widespread distribution channels would help us to reach more people with innovative insurance products and services". Janashakthi will not make any immediate changes to the existing Board of Directors of NICL, Chairman Deshamanya Nissanka Wijewardena, Managing Director C.T.A. Schaffter, Executive Directors Prakash Schaffter and Tryphon R. Mirando, W.T. Ellawala, and L.C.R. De C. Wijethunga.

Janashakthi will not retrench the existing staff of NICL.

Janashakthi is the first and only insurance company to be awarded the ISO 9002 certification from the Bureau Veritas Quality International UK, for Life Insurance. Janashakthi has boosted its premium income to over Rs. 1 billion in the financial year ended December 31, 2001.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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