Janashakthi expects Rs4.6bn from Sri Lanka flood claims, profits surge
ECONOMYNEXT – Janashakthi Insurance group said profits grew 159 percent from a year earlier to Rs272 million in the quarter ending June 2016, despite higher benefits paid, with Rs4.6 billion in claims reported from recent floods in Sri Lanka.
The group reported earnings of 50 cents per share for the quarter in interim accounts filed with the Colombo Stock Exchange. For the six months to June, the firm reported earnings of Rs1.60 per share on total profits of Rs630 million, which grew 197 percent.
The firm said it is expecting Rs4.6 billion in claims from recent floods and landslides in Sri Lanka.
"We recorded steady topline growth, led by the the non-life segment, and an impressive growth in the bottomline despite a marked rise in claims, which resulted from the recent floods," Managing Director Prakash Schaffter, said in a statement.
"This is yet another testament to the company’s sound financial fundamentals and prudent and farsighted reinsurance arrangements, as well as our steadfast resolve to honour our commitment to policyholders."
Benefits and claims rose 38 percent to Rs1.68 billion in the June quarter.
In the June quarter, gross written premium also grew 34.4 percent from a year earlier to Rs3.19 billion. After re-insurance payments net premiums rose 27 percent to Rs2.702 billion.
Janashakthi acquired the genera insurance unit of AIA in Sri Lanka last year and it was merged in January 2016, the firm said. (Colombo/Aug08/2016)