Thursday 12 November 2015

Sri Lanka’s Janashakthi Insurance September net down 56-pct

(LBO) – Sri Lanka’s Janashakthi Insurance net profits dropped 56 percent to 102 million rupees in the September quarter against a year earlier amid increased benefits and claims, the firm’s interim accounts showed.

Gross written premiums rose 15 percent to 2.5 billion rupees with net premiums also up by 15 percent to 2.2 billion rupees.

Gross written premiums comprised of 606 million rupees of total life premiums and 1.9 billion rupees of total non-life premiums.

Fee and commission incomes were up 20 percent to 72 million rupees and investment incomes dropped 13 percent to 362 million rupees.

Underwriting and net acquisition costs were up 15 percent to 426 million rupees while net benefits and claims were also up by 20 percent to 1.3 billion rupees.

Total benefits, claims and net acquisition costs rose 15 percent to 2.0 billion rupees.

Janashakthi Insurance as part of segregation requirement of Insurance Board has transferred 635 million rupees of assets to the Life Fund of former National Insurance Corporation (NIC) maintained separately to bridge the Policyholders’ Fund deficit.

The NIC Policyholders’ Fund had a negative solvency of 39 million rupees for the quarter ended 30 September 2015.

“The solvency deficit reported for this period was mainly due to the Policyholders’ liability not being valued for the purpose of calculating solvency margin, quarterly.” the firm said.

The Total Assets of the company as at 30 September 2015 was 23 billion rupees out of which 72 percent is represented by financial investments placed by the company.

In October 2015, Janashakthi Insurance entered into a share purchase agreement with AIA Insurance to acquire the entire shareholding of its subsidiary, AIA General Insurance.

The firm purchased the entire share comprising 18,780,167 ordinary shareholding of AIA General Insurance for a total consideration of 3.2 billion rupees.

The firm is to have a rights Issue of one new ordinary share for every two ordinary shares held in the capital of the company at a price of 18.50 rupees per share.

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