Janashakthi records Rs 525.77m net profit in 2007

Janashakthi Insurance Co. Ltd recorded an impressive Rs. 525.77 million Net Profit After Tax for the year ended December 31, 2007, recording the highest net profit margin from among the five leading insurance companies in the country.

Managing Director of Janashakthi Insurance Co. Ltd. Prakash Schaffter said that the Company's strong and stable financial position as a key player in the Sri Lankan insurance industry, contributed to significant progress in 2007 with its highest ever total revenue reaching Rs. 5.2 billion.

"Despite the prevailing business climate and intense competition among the industry players, this performance is indicative of the strength and stability with which we have been able to exceed budgeted profitability objectives by a significant percentage. It is also indicative of the measure of confidence our customers have in Janashakthi.

Schaffter said that he was also confident that the company will receive healthy financial ratings through a leading financial rating company, through a currently on-going evaluation.

"Our performance was led by growth in the General Insurance sector largely through our flagship brand Janashakthi Full Option which contributed to over half the Company's business. The Motor Insurance segment achieved a 22% growth over last year recording Rs. 2.76 bn as premium income.

Janashakthi Full Option has also recorded the highest absolute premium growth in the Motor Insurance category with an increase of Rs. 500mn. There has also been considerable headway in the Life Insurance business achieving total premiums of Rs. 1.2 billion, an increase of 18%, with an increasingly steady retention of business", Schaffter added.

Janashakthi achieved 17% growth in Gross Written Premiums in the General Insurance segment, to reach Rs. 3.68 bn, thus maintaining its position as the third largest general insurer in the country with only 13 years of operation, surpassing insurance companies which have been in operation for over 20 years in the market.

Fire insurance premium rose by 8% to Rs. 369mn while the other noteworthy performance in General Insurance was from Marine Insurance which grew by 69% to Rs. 137mn, while other miscellaneous sectors continued to maintain their position.

"The Life Insurance business has performed beyond expectations recording the highest ever surplus transfer amounting to Rs. 278 mn which is a 340% growth over the corresponding period. Gross written premium of Life business increased to Rs. 1.2bn with a growth of 18%. First year premium of the company reached Rs. 528mn with an impressive growth of 33% in renewals.