Sri Lanka’s Janashakthi Insurance net down 27-pct in Dec, Rs11bn buyback
ECONOMYNEXT – Profits at Sri Lanka’s Janashakthi Insurance, from life and general businesses, fell 27 percent to 623 million rupees in December 2017 quarter from a year earlier, amid higher benefits and claims, interim accounts showed.
The group reported earnings of 1.15 rupee a share for the quarter. For the year the December it reported earnings of 2.08 rupees per share, on total profits of 1.1 billion rupees, down from 1.64 billion rupees.
The firm has struck a deal to sell its general insurance unit to Allianz of Germany. The firm said it will buy back 3 shares out of every 5 held t 36.70 rupees to distribute 11.9 billion rupees to shareholders. The was selling at 31.00 rupees, down 20 cents in intra-day trading Monday.
In the quarter, gross written premium grew 6.5 percent to 4.0 billion rupees, and re-insurance rose 14 percent to 604 million rupees. Net premium grew 5 percent to 3.4 billion rupees.
Investment income grew 1.7 percent to 570 million rupees. Other income fell 24 percent to 239 million rupees.
Benefits and claims grew 4.1 percent to 1.8 billion rupees. With acquisition costs and 162 million charge to the life fund (292 million rupee gain last year), total benefits, claims and acquisition costs rose to 2.5 billion rupees from 1.9 billion rupees dragging down profits. (Colombo/Jan26/2018)