Janashakthi posts strong results, announces dividend
Janashakthi Insurance PLC recorded another strong performance at the half year in 2012 and has announced a dividend of 1 rupee per share.
The Company raises the bar in its dividend yield and continues to maintain the highest stated capital structure. The dividend improves on the previous years high, delivering a 9.25% for 2012 versus 6.25% and 6.67% for 2011 and 2010 respectively. The 2012 dividend helps Janashakthi retain its position as the Insurer with the highest dividend yield in recent years. “Insurance is a long term business and the stated share capital gives a strong signal of commitment and stability to stakeholders of the sustainability of the business,” Managing Director Prakash Schaffter said.
During the first six months ended in 30th June the Profit After Tax amounted to LKR 164 million. Total assets rose from LKR 13 billion to LKR 14 billion and the Company was able to record a 14% growth rate in its combined Gross Written Premium (GWP) of LKR 3.8 billion. “Janashakthi has recorded a stellar performance and has been consolidating the Company’s products and services to provide our valuable customers an even better quality of service than we have done in the past. It looks like Janashakthi has recorded the highest profit after tax amongst the peer group of insurance companies,” stated Bertal Pinto-Jayawardene, General Manager – Finance and Planning. “Janashakthi continues to reflect a very healthy stated capital structure in having nearly 8 times the required level of capital for its business operation. We have the highest stated share capital of any listed insurance company by a long chalk. Insurance is a long term business and the stated share capital gives a strong signal of commitment and stability to stakeholders of the sustainability of the business.” further added Prakash Schaffter. The net earned premium of Janashakthi was LKR 3.2 billion and the Life Fund rose by 10% from LKR 4.7 billion to LKR 5.2 billion. The Company also recorded a 10% growth in revenue from LKR 3.4 billion to LKR 3.7 billion and marked a motor sector growth of 18% in GWP which rose from LKR 1.7 billion to LKR 2.1 billion.
The Company has recorded a stellar growth in all areas of general insurance and is focusing on developing the range of our products for the life segment to ensure that the Company provides unmatched products for the differing needs of the Sri Lankan consumer. Janashakthi’s Board has established internal control systems, including a comprehensive risk identification, measurement and mitigation process. The composition of the Board is exemplary on many fronts, providing a proper balance of non-executive independent directors and due gender diversity.