Janashakthi records Rs. 8.9 bln GWP despite challenging industry conditions
View(s):Janashakthi Insurance PLC has reported a pre-tax profit of over Rs.1 billion in the year ending December 2014,showing healthy growth amidst regulatory change in the insurance sector.
Celebrating two decades of existence, Janashakthi posted a Gross Written Premium of Rs. 8.9 billion against Rs. 8.7 billion in the previous 2013 year, according to a company media release.
Janashakthi said it performed exceptionally well in the non motor segment, with the company recording 14.47 per cent growth, particularly impressive considering that overall industry growth was 1.47 per cent. The motor business in particular performed well in the latter part of the year, growing even in an industry which saw sluggish growth, it said.
“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,” the release said.
This growth was reflected in Janashakthi’s share prices. The market price per share showed strong growth at Rs. 23.20 compared to Rs. 12.70 the previous year.
“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. This also showcases Janashakthi’s commitment towards its customer base, even amidst challenging conditions,” the company noted.
Janashakthi Insurance continues to reflect a very healthy capital structure and has one of the highest paid up share capitals of any listed insurance company. Building on its strong balance sheet, the company says it sees opportunities for growth through mergers and acquisitions in the future.
Janashakthi’s strong performance was recognized, with the company winning several awards during the year.