Janashakthi Insurance recorded a 13.4% growth in the first quarter, after setting up a new entity known as Janashakthi General Insurance Ltd.
The new entity, which commenced operations on the January 1, 2015, handles the Non-Life Insurance business. The parent company, Janashakthi Insurance PLC, will act as the holding company engaging in the Life Insurance business.
Commenting on the performance for the first quarter of 2015, Janashakthi Insurance CEO, Jude Fernando, said, “At the end of first quarter Janashakthi delivered a Gross Written Premium of Rs.2.5 billion adding nearly 300 million to GWP versus first quarter of 2014. This is a healthy start for the company and we hope to continue on this growth momentum.”
The GWP of Janashakthi General Insurance Ltd, (the Non-Life Insurance segment) was Rs.1.9 billion compared to Rs.1.7 billion in the previous year, reflecting an overall growth of 12%. The changes made within the Life Insurance segment in 2014, has shown positive results. This is further validated with the Life insurance business recording a GWP of Rs.605 million, growing the portfolio by 17.8% in first quarter 2015.
In addition, the company managed to pay out Rs.1.1 billion in claims as of Q1 2015, an impressive achievement given the prevailing market conditions. Total Assets of the Company have crossed Rs.21.1 billion as at end of the first quarter 2015.
Janashakthi Insurance PLC Managing Director, Prakash Schaffter, commented on profit delivery by saying, “The Group has posted a consolidated net profit of Rs.106 million during the quarter ended 2015 in comparison to Rs. 156 million in the same period last year. The drop in profit was mainly due to the market to market loss of Rs.71 million accounted during the period under review.
However, the subsequent bullish run of stock market enabled the company recover from this position. We are confident of improved performance in the future.”