Janashakthi begins 2016 on a strong footing

Janashakthi Insurance PLC (Janashakthi) reported a consolidated Profit After Tax (PAT) of Rs.358 million for the quarter ended March 31, 2016, a marked Year on Year (YoY) growth of 236%. The Insurer posted these numbers on the back of a 32.8% rise in consolidated Gross Written Premium (GWP) amounting to Rs.3.3 billion for the period under review, the company said in a press release.

The company's Non-Life or General Insurance business grew by a robust 43%, recording a Gross Written Premium (GWP) of Rs. 2.7 billion. This was largely driven by the merger of operations of newly acquired former AIA General Insurance Lanka Limited with Janashakthi General Insurance Limited, which was completed by the end of January 2016. The Life Insurance business delivered a GWP of Rs.0.61 billion, a YoY increase of 0.52%.

Janashakthi disbursed claims over Rs.1.543 billion, including claims pertaining to the acquired entity during this period. This 44% YoY rise in claims is a reflection of the company's resolve to honour its commitments to policy holders. The acquisition and merger also drove the company's asset base to Rs.30.85 billion, a YoY growth of 46%, with a significant proportion being held in risk free Government Securities.

Managing Director, Janashakthi Insurance PLC, Prakash Schaffter said, "It is heartening to start FY 2016 on such a positive note. Our consolidated businesses continue to record steady growth led by the Non-Life category, enabling us to grow profitably despite a rise in claims payments."

"During the quarter we also successfully completed the merger of AIA General Insurance Lanka Limited, an entity that we set out to acquire in October 2015 and amalgamated with Janashakthi General Insurance Limited shortly thereafter. We are now better poised to strengthen and align our market position towards leadership, while delivering greater value to all stakeholders," he said.