Janashakthi reports record profits with highest ever 62 % growth

Janashakthi Insurance PLC said this week it posted ‘record profits’ for 2012 and reached Rs 8.26 billion in total net income.

Stringent cost control coupled with the company’s strategy of prudent underwriting resulted in a record profit of after tax of Rs 800 million, up by 62 per cent from the previous (2011) year.

“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 per cent, motor insurance topped Rs. 4 billion, growing by 14 per cent. Underwriting profits rose to Rs. 2.1 billion,” the company said in a statement.

“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. Janashakthi continues to be a leader in its most profitable segments of private cars, motor cycles, three wheelers and dual purpose vehicles in which it continues to record considerable success during the year," noted Prakash Schaffter, Managing Director, Janashakthi Insurance.

Janashakthi said it continues to reflect a very healthy stated capital structure of Rs. 1.4 billion which is over seven times the required level of capital for its business operation.

“(The) Janashakthi Life Saver product recently launched has taken the retirement market by storm with its game changing cornucopia of features taking on the herculean task of grappling with a national crisis as Sri Lanka now has one of the fastest growing ageing demographics in Asia. The need for really pushing for a true safety net product that both saves and protects was the brainchild of founder and Deputy Chairman Chandra Schaffter,” it said.

In the team category, the Gampaha ADO office claimed the Best ADO title.