Janashakthi records Rs 1 billion PBT

Janashakthi Insurance PLC recorded profit before tax of over Rs.1 billion as at December 31, 2014, showing healthy growth amidst regulatory changes in the insurance sector.

As the company celebrated two decades of existence, Janashakthi posted a Gross Written Premium of Rs. 8.9 billion as of December 31, 2014, compared to Rs. 8.7 billion in the previous year.

The Gross Written Premium of Non-Life Insurance segment of the company was Rs. 6.8 billion compared to Rs. 6.5 billion in the previous year.

This is a 4% year-on-year growth in the Non-Life Insurance Business. This growth has been achieved mainly due to the significant contribution made by the Non Motor Business sector.

Janashakthi performed well in the Non motor segment, with the company recording 14.47% growth, particularly impressive considering that overall industry growth was 1.47%.

The Motor business in particular performed well in the latter part of the year, growing in an industry which saw sluggish growth.

Janashakthi's assets base grew to Rs 20.8 billion compared to Rs. 18.6 billion, an impressive feat given prevailing industry conditions.

Net assets per share rose to Rs. 14.34 compared to Rs. 12.48 the previous year indicating the sustainable value creation by the company towards its stakeholders.

This growth was reflected in Janashakthi's share prices. Market price per share showed strong growth at Rs. 23.20 compared to Rs. 12.70 the previous year, reflecting market confidence in the brand. Earnings per share also rose to Rs. 2.92 compared to Rs. 2.77 as of December 31, 2013.

This performance was achieved despite honouring Rs. 4.6 billion in claims. Prompt claims management and disbursement has proved critical in establishing brand equity, ensuring Janashakthi remains a major player in the segment winning several awards.