Tuesday 14 August 2018

Sri Lanka's Janashakthi Insurance June net flat

ECONOMYNEXT - Profits at Sri Lanka's Janashakthi Insurance fell 1 percent from a year earlier to 133.9 million rupees in the June 2018 quarter amid higher expansion costs, interim results showed.

The firm reported earnings of 37 cents per share for the quarter, interim results filed with the Colombo Stock Exchange showed.

Earnings in the six months to end June were 19.52 rupees a share on a profit of 7 billion rupees, up sharply from 64 million rupees a year earlier due to a one-off gain of 7.8 billion rupees on the disposal of its general insurance business.

The share was trading 30 cents higher on Tuesday at 22.90 rupees.

In the June quarter, gross written premiums grew 3 percent from a year earlier to 680.9 million rupees, premiums placed with re-insurance companies fell 15 percent to 30.3 million rupees leading to a 4 percent increase in net written premiums to 650.6 million rupees.

Net claims and insurance benefits paid grew 18 percent to 315.4 million rupees and underwriting and acquisition costs rose 39 percent to 209.3 million rupees.

"Overhead expenses grew primarily due to one-off payments related to the divesture of Janashakthi General Insurance Limited and re-structuring," Janashakthi Insurance said in a statement.

The company said it was also expanding its branch network and digital capabilities to reach more customers.

Income from life fund investments grew 9 percent to 345.2 million rupees.

Life insurance liabilities totaled 10.1 billion rupees at end June 2018, up from 9.6 billion rupees six months earlier.

Gross assets fell 49 percent to 18.9 billion rupees and net assets fell 35 percent to 7.3 billion rupees.

"This was a result of Janashakthi’s move to return substantial revenue reserves to its shareholders through a share buyback in March 2018," the company said.

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