Janashakthi Insurance PLC (“JINS” or “the Company”) is a medium-sized life insurer in Sri Lanka, supported by a well-recognized brand and a distribution network of around 76 branches. The Company’s market share reduced in CY22 and CY23 due to operational challenges and restructuring of its business. In CY24, the Company posted growth in GPW and continued that trend with GWP growth of ~27.3% YoY in 1HCY25, above the industry average. The Company's underwriting income had been under pressure in preceding periods (CY24: ~-6.0% | CY23: ~-24.2%) but reached break-even in 1HCY25. The Company's claims ratio was ~44% in 1HCY25 (CY24: ~62%), while expense ratio stood at ~25% (CY24: ~23%) resulting in combined ratio of ~96% (CY24: ~107%). JINS maintains a substantial investment portfolio of approximately LKR~31.8bn as of 1HCY25, which supplements its profitability through investment income and overall financial strength of the Company. Government Securities account for the largest share of the portfolio, representing about ~38% of total investments. JINS recorded Net Profit of LKR~1.3bn in 1HCY25 (1HCY24: LKR~0.78bn | CY24: LKR~4.5bn), supported by GWP growth and revaluation gains on investments amid normalizing interest rates.
JINS capital position remains sound, with a Capital Adequacy Ratio (CAR) of around ~370% in 1HCY25 (CY24: ~277%), comfortably above the regulatory minimum of 120% and in line with industry average of ~345%. JINS is predominantly owned by Janashakthi Limited, the holding entity of the Janashakthi Group, which operates across several financial sectors including life insurance, leasing and finance, corporate services, fund management, primary dealing, as well as health and fitness. Within the Group, JINS serves as a key contributor of cash flows to the parent through consistent dividend payments or other initiatives. In CY23, JINS acquired ~25% equity stake in First Capital Holdings, another subsidiary within the Group, from its parent.
The rating is dependent on consistent growth in GPW, resulting in better market position of JINS. Improvement in underwriting results in important along with maintaining strong capitalization and liquidity. Although JINS operates under the oversight of the Insurance Regulatory Commission of Sri Lanka ("IRCSL"), its financial profile remains correlated with that of the holding company.