ECONOMYNEXT – Profits at Sri Lanka’s Janashakthi Insurance group fell 50 percent to 94.1 million rupees in the June 2015 quarter amid a spike in claims, but the firm said it saw a rise in new business written.
The firm reported earnings of 26 cents per share for the quarter. In the 6-months to June the group posted earnings of 55 cents per share on total profits of 200 million rupees, down from 346 million rupees a year earlier.
In the June 2015 quarter, gross written premium grew 17 percent to 2.37 billion rupees, but claims also rose 22 percent to 1.2 billion rupees.
"The double digit growth in Gross Written Premium alongside the Rs.1.2 billion claims payout in Q2, 2015 is a reflection of our mission of ‘bringing hope and prosperity to all," Prakash Schaffter, Managing Director, Janashakthi Insurance Plc said in a statement.
In the half year to June the group grew written premium 15 percent to 4.8 billion rupees.
The firm has now segregated its life and general businesses as Janashakthi Insurance PLC (JIPLC) and Janashakthi General Insurance Limited (JGIL).
"The restructuring of Life operations resulted in increased compensation and implementation costs, the company said. "Therefore, though current year costs have increased, the benefits of the restructuring and implementation plan would be derived only in the subsequent years."
The group had net assets of 4.4 billion rupees and gross assets of 22.1 billion rupees. (Colombo/Aug14/2015)