Janashakthi records highest net profit in insurance industry

Anjana Samarasinghe

Janashakthi Insurance recorded Rs. 525.77 million net profit after tax for the year ended 31 December 2007, recording the highest net profit margin from among the five leading insurance companies in the country, as per released records to date.

Chairman of Janashakthi Insurance, W.T. Ellawala said Janashkthi Insurance is also planing an Initial Public Offering this year and is on a process of going through regulatory requirement for the public offering.

Ellawala said company revenue reached Rs 5.2 billion in 2007 and it was the best achievement over the past 13 years that company has achieved. There was a significant growth in both life and general insurance segments. Life Insurance business achieved total premiums of Rs. 1.2 billion, which shows 18 per cent growth. General insurance recorded Rs 3.68 billion with a 17 per cent growth in last year.

The Motor Insurance segment achieved a 22 per cent growth over last year recording Rs. 2.76 billion as premium income. Fire insurance premiums rose by 8 per cent to Rs. 369 million and Marine Insurance grew by 69 per cent to Rs. 137 million, while other miscellaneous sectors continued to maintain their position.

"Overall insurance industry too has gained 15 per cent growth last year even in the difficult economic condition. There is a huge growth potential in the local insurance industry," he said.

The company recorded Rs 525 million profit after tax last year but in 2006 this was Rs 746 million. This is manly due to the significant capital gain company had on that year he said.

"The company had 12 new branches during last year bringing the total number of branches to 112. The company also recruited 300 employees in last year and had invested Rs 34.7 million in staff training," he said. This year the company is targeting 25% growth in both life and general insurance sectors.

Managing Director of Janashakthi Insurance Co. Ltd. Prakash Schaffter said they expect to introduce more innovative products to the market this year.