Sri Lanka’s Janashakthi Insurance Dec net up 37-pct

ECONOMYNEXT – Profits at Sri Lank’s Janashakthi Insurance Plc in the December 2015 quarter rose 37 percent from a year earlier to 662 million rupees with assets also growing with the acquisition of another general insurance.

The group reported earnings of 1.68 rupees for the quarter. In the year to December the group reported earnings of 2.45 rupees on total profits of 965 million rupees, down from 1,061 million.

Gross written premium rose 27 percent to 3.1 billion rupees, with net premium up 34 percent to 2.7 billion rupees. Claims rose 35 percent to 1.5 billion rupees.

Investment income rose 38 percent to 467 million rupees.

Group gross asset grew from 20 billion rupees to 31 billion rupees during the year. Net assets grew from 5.2 billion rupees to 8.3 billion rupees.

The firm raised 3.6 billion rupees from a rights issue to acquire the general insurance unit of AIA Insurance in Sri Lanka.

"With the amalgamation now complete, we are working on unveiling a host innovative insurance solutions," Prakash Schaffter, Managing Director, Janashakthi Insurance said in a statement.

The firm had also sold lease rights to land in Staples Street in Colombo to Sanken Construction for 1.93 billion rupees. A 50 percent advance of 965 million had been received in December 23, and the firm expects to book profits in the first quarter of 2016 after regulatory approvals.