Sri Lanka’s Janashakthi Insurance net profit down in Sept quarter
Nov 16, 2017 17:19 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Sri Lanka’s Janashakthi Insurance said net profit fell 2.5% to Rs155 million in the September 2017 quarter from a year ago.
Quarterly earnings per share were 28 cents, according to interim accounts filed with the stock exchange. The stock was last traded at Rs16.
Gross written premium rose 15% to Rs3.8 billion while net written premium rose 14.2% to Rs3.2 billion.
EPS for the nine months to September were 93 cents, down from Rs1.45 the year before.
“Profitability was adversely affected due to the increase in the fire and engineering claims as a result of the floods and the medical claims being higher than the same period last year due to the dengue epidemic experienced,” said a note accompanying the accounts.
“Compared to the previous year the profitability was also adversely impacted by Rs199 million due to the impairment on goodwill resulting from the acquisition of AIA General Insurance in 2015.”
Prakash Schaffter, Managing Director of Janashakthi Insurance, said the firm had been able to build on the momentum gained during the first half of the year and register double digit growth in premiums at the end of the third quarter.
“We have posted these numbers despite having witnessed a significant rise in claim settlements. This has been possible thanks to our strong fundamentals and prudent reinsurance structure.”
Janashakthi Insurance’s consolidated Gross Written Premium (GWP) grew 12% in the nine months to Rs11 billion from the previous year.
“This was on the back of a strong growth in the Non-Life segment, while the Life segment remained flat as the ongoing restructuring effort continued,” said the note accompanying the accounts. “These efforts are expected to bear fruit from the fourth quarter of 2017.”
The Non-Life segment recorded a GWP of Rs8.9 billion and continued to be the key driver of growth for the company, while the Life segment recorded a GWP of Rs2.1 billion, the statement said.
“The prudent management of investments by the company helped increase the investment income by Rs441 million, which is a remarkable increase of 32% over the previous year,” it said.
“This was the mainstay for the increase in Other Revenue which reached Rs2.2 billion, an increase of Rs515 million over the same period last year.”
During the period under review, overhead expenses were strictly controlled by prudent cost management resulting in a year on year growth of less than 4%, Janashakthi Insurance said.
“Total Net Benefits and Claims paid out to customers grew by 11% to reach Rs5,512 million, reflecting the strength of the company towards meeting its customer commitments,” it said.
Out of the Total Net Benefits and Claims the Non-Life segment accounted for 85%.
During the period under review the total Consolidated Assets of the company stood at Rs35.8 billion, up 11% while the investment portfolio grew by Rs2.9 billion over the period under to reach Rs24.5 billion.
(COLOMBO, November 16, 2017)