Janashakthi posts Rs. 209.5 m profit for 2005

Janashakthi Insurance Co. Ltd reported a turnaround in the company's profits to Rs. 209.5 million 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 million up by 32.6% from Rs. 2,913 million 2004. Income from investments grew by 39% in 2005 to reach Rs. 766 million.

Janashakthi's General Insurance sector recorded a gross written premium of Rs. 2, 888 million, 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 million in 2005, a commendable improvement even after discounting the impact of tsunami claims in 2004 compared to the loss of Rs. 74 million previously.

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

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

Performance during the year has been encouraging with significant growth in the value of business underwritten, and a gratifying revival in profitability.

These were achieved in the face of daunting political and economic circumstances especially after the tsunami tragedy in December 2004. Janashakthi's core attributes of integrity, efficiency, reliability and social responsibility were amply demonstrated by the expeditious and considerate handling and payment of tsunami claims aggregating over Rs. 3.0 billion.

"We are certainly pleased to report with satisfaction our Group and company profits of Rs. 209.5 million and Rs. 45.9 million for 2005, which we hope will be viewed by all stakeholders as a testimony to our corporate resilience, as well as the unflagging dedication of our staff at all levels in the field and office.

We have also retained our position as the third largest general insurer in Sri Lanka by a wide margin," Janashakthi Chairman W.T. Ellawala said.