Janashakthi Insurance defies pandemic to report higher premiums and profits
Janashakthi Insurance PLC continued to show resilience as the company collected higher premiums and reported improved profits for the three months ended December 2020 in a sign that life insurance business did better despite the pandemic-induced economic challenges.
The company booked gross written premiums of Rs.1.12 billion for the quarter under review compared to Rs.865.8 million in the same period in 2019, recording a top line growth of a robust 30 percent.
This is the second such consecutive quarter as the company reported higher premium incomes for July-september quarter too. Its premiums rose by 15 percent over the same period in 2019, showing that life business largely remained intact despite the economic hardships faced by some sections due to lockdowns.
However, companies and salaried employees found the period of lockdowns less daunting as they stockpiled execs cash in bank accounts, and some of them may have contributed to life covers prompted by higher savings and also due to the new found need for better healthcare protection necessitated by the virus scare.
In this backdrop, life insurance policy providers were seen significantly upping their marketing game in tapping new clients.
“…in response to the prevailing emergency situation, we introduced ‘COVID Guard’, an innovative insurance cover, specifically designed to provide financial protection during the pandemic situation,” said Ravi Liyanage, Director/ Chief Executive Officer of Janashakthi Insurance PLC.
The lower interest rates in the economy also added some tailwind into the life policy intakes as people who depended solely on bank interest income turned to investment plans with dividends and health covers.
The need for annuity schemes at a time of low interest rates will also power the industry in the time to come.
Janashakthi Life paid Rs.477.3 million as net benefits and claims in the three months to December 2020, compared to Rs.557.6 million in the same period in 2019.
The company reported earnings of Rs.1.03 a share or Rs.233.7 million for the October-december quarter compared to 14 cents a share or Rs.31.7 million in total earnings reported in the same period in 2019.
For the year ended in December 31, 2020, the company reported earnings of Rs.3.26 a share or Rs.738.7 million compared to earnings of Rs.1.75 a share or Rs.396.3 million in 2019.
By end of 2020, the company had a life fund of Rs.12.7 billion.
As at December 31, 2020 Janashakthi PLC and affiliated entities of the Schaffter family-owned Janashakthi group, held 80 percent stake in Janashakthi Insurance PLC.