Janashakthi Insurance Company Limited is going for its Initial Public Offering, June 16, and is confident that all 33 shares on offer will be grabbed on day one itself.
"We have a great brand built over a short period of time and the fact that there has been no IPO in the country in two years tells us that now is the right time to make an IPO. We are optimistic that the IPO will close on the very first day," Ravi Liyanage, General Manager Sales and Marketing, Janashakthi Insurance Company Limited (JICL) told the Island Financial Review.
A special feature of the IPO is that JICL has set internal targets for its personnel to attract applications for the IPO in Batticaloa, Badulla, Hambantota, Monaragala, Anuradhapura, Polonnaruwa, Puttalam, Matale, Nawalapitiya and Nuwara Eliya.
This is perhaps an indication of the company’s confidence that the Janashakthi brand is established in these areas noted for their high poverty levels, and is committed to take the benefits of insurance to the rural populace.
The company hopes to raise close to Rs 400 million through the IPO which will be channelled into upgrading its computer systems and networks to be on par with the developed world, improve its brand value, take its training and development of staff to international standards, turn each of the 115 branches into profit centres and expand into the Middle East market.
"JICL is the third largest general insurer with only a decade gone by since the company was formed. We have the highest profit margin in the industry of Rs 525 million in 2007. Our branch network is the second largest and we are the most awarded service brand by the Sri Lanka Institute of Marketing. We are also the fastest insurer to reach the Rs 5 billion revenue milestone," Liyanage said highlighting some of the company’s notable achievements.
He also said that Janashakthi was the first to venture into the South Asian region when it offered its insurance products to the Maldives.
When JICL acquired the National Insurance Corporation in 2001, it became the only private insurance company to acquire a state-owned insurance company.
The Gross Written Premium for general insurance grew by 17 percent, or Rs 3.678 billion in 2007, while for life insurance the corresponding figure was Rs 1.206 billion, a 18 percent growth.
"We have already commissioned the rating of our financial strength and expect the results soon. The Janashakthi Brand is being valued concurrently as well," Liyanage said.
"Applications for the IPO can be made at any one of our 115 branches and at 300 Bank of Ceylon branches while our 3,000 strong insurance sales personnel have been deployed to take the IPO to the masses as well."
The issue price of a share will be Rs 12.
Janashakthi through the years...
1992
Janashakthi Life Insurance Co. Ltd was incorporated in Sri Lanka as a public company with limited liability in 29th October 1992.
1994
Janashakthi began operations on 15th September 1994, as Sri Lanka’s first specialised life insurer.
1995
Janashakthi General Insurance Co. Ltd. was established on 20th September 1995 as Sri Lanka’s first specialised general insurer.
1996
Janashakthi took the concept of insurance to people’s doorsteps and embarked on a rapid regionalisation programme and established one of the widest branch networks in the industry.
1997
Janashakthi Life made Profits and the company was able to declare their first bonus to policyholders.
The company moved to an aggressive advertising and marketing strategy in 1997 with the sponsorship of the Sri Lanka vs. India Test match.
1998-1999
The company began exercising social responsibilities as a corporate entity by becoming involved in several social projects. A massive programme for the safety of people on the highway, in Colombo, was undertaken at Pedestrian Crossings, Guard Rails and Belisha Beacons.
2000
Janashakthi Life and Janashakthi General merged and formed one strong entity called Janashakthi Insurance Co. Ltd.
2001
Janashakthi Insurance acquired a controlling interest in National Insurance Corporation Ltd.
In the same year the Life Operations Department received ISO 9002 International Service Quality Accreditation and in the process became the first insurer in Sri Lanka to obtaine this certification.
The premium income in the year 2001 exceeded Rs. 1 Billion.
The company undertook 2 major Test Cricket sponsorships- the SL vs. West Indies and SL vs. Zimbabwe Test Series.
2002
Janashakthi became the first private insurer in Sri Lanka to open a representative office overseas, establishing a branch office in Maldives.
In the same year, branches were established in Jaffna and Batticaloa in the Northern and Eastern Provinces.
2003
The Janashakthi Group diversified into banking, financing, development banking, porcelainware, property development and Agriculture by investing in strategic stakes of various companies.
2004
The company’s 10th year of operation registered a record turnover of Rs. 3.1 billion premium income, thus becoming the only insurer in Srilanka to surpass the Rs. 3 billion mark within the first 10 years of operations in Sri Lanka. The company also relaunched its comprehensive motor insurance policy as Janaratha Full Option with a package of benefits that included onsite claim settlement with a dedicated 24 hr Call Centre.
2005
Janashakthi becomes the 3rd largest insurer in Sri Lanka by the end of 1st Quarter 2005, in terms of the overall Gross Written Premium (GWP).
2006
Janashakthi Insurance struck Gold as the No.1 Service Brand of the year having competed against market leaders in insurance, leading banks, finance companies and large conglomerates. Organized by the Sri Lanka Institute of Marketing, this year’s Brand Excellence Awards also crowned Janashakthi Full Option as the Best Innovative Service Brand of the Year, and Janashakthi Corporate, as the Best Local Service Providing Brand of the Year.
