Janashakthi records 62% growth

Managing Director, Janashakthi Insurance, Prakash Schaffter

Janashakthi Insurance PLC posted record profits for the year 2012, hurdling over the Rs 8 billion mark to Rs 8.26 billion in total net income. Stringent cost control coupled with the company's strategy of prudent underwriting resulted in record profit after tax of Rs 800 million. This reflected an accelerated growth of 62% that shows the company's gathering momentum in market dominance.

This result is amplified against one of the toughest years for motor vehicles with shrinking imports, depreciated exchange rates and higher interest rates. Despite the increases in vehicle import duty which saw vehicle registrations recede by 40%, motor insurance topped Rs 4 billion growing by 14%. Underwriting profits rose to Rs 2,130 million reflecting an 11% growth.

Chairman W.T Ellawella said, "At Janashakthi, corporate governance is about engendering Trust and hence about effective, transparent and accountable governance of the enterprise by the management including the Board, the highest governing body."

"Janashakthi's performance in 2012 is, more than ever, a reflection of the growing strength of its sales force and its continuous focus on market responsiveness and service excellence," he said.