@EquityChamp wrote:Janashakthi Insurance share price movement in future will depend on how their life business is going to perform in future. So better to study their next couple of quarter results before entering.
I agree with EC if anyone is going buy JINS as a medium to long term investment.
For a long time JINS owners Schaffter family was looking to sell their Life insurance segment as it wasn’t doing well compared to industry growth, so much so even new entrants surpassed them. There was a time they were the 5th largest life insurer but now they are in the 7th spot with Softlogic Life and HNB Assurance dislodging JINS. Within the next 5 years LOLC Life and Arpico Life too might surpass JINS.
Finally they sold General business which was comparatively doing very well, as their efforts to rid Life business failed.
In 2017 Life insurance industry grew by 12% but JINS life business contracted. This is what their MD says “The ongoing restructuring effort of our Life business is reaching conclusion and is expected to bear fruit in the foreseeable future”.
They also don’t seem to have good, proven life driven CEO and management to run their life business compared to others in the industry. As Schaffters are weak in running life compared to General, they will shop for top talent to run the JINS. They have hired many such in the past for life business but all those efforts have given back the company very little. The latest is the resignation of Life CEO who was replaced by a considerably weaker CEO when it comes to running life business.
The possibility of talented life driven CEO (Local) and new management would be impossible as good professionals will fear that chaffters will ultimately sell off.
So watch their performance within the next 2 quarters or perhaps even next 4 quarters before you make a substantial investment in JINS. If you are looking to buy a good insurance company HNB owned HNB Assurance, JKH owned Union Assurance, Richard Pieris Group owned Arpico Life, People’s Leasing (People’s Bank ultimate owner) owned People’s Insurance and Ceylinco are also worth looking at and analyzing.
Home
