The firm maintained claims and benefits at 3.08 billion rupees, flat from 3.07 billion rupees a year earlier.

"We have refrained from quoting rates that are uneconomical and do not add to our bottomline," managing director Prakash Schaffter said.

General manager, finance and planning Bertal Pinto-Jayawardena said the firm worked with clients to reduce risk, such as by mapping areas with increased flood risk which was well received.

Its claims ratio had improved to 63 percent from 70 percent a year earlier.

Shehara de Silva, general manager marketing says the company is improving brand loyalty especially in motor where price competition is high.

Thought underwriting results improved to 983 million rupees from 880 million rupees profits fell 16.7 percent to 636 million rupees. Investment income fell to 894 million rupees from 1,001 million a year mainly to due falling stock prices, Pinto-Jayawardena said.

Janashakthi said competition is increasing with new insurers coming, especially those connected to motor dealers.

The firm says it is setting up branches in former war-torn areas in the north and the east where there is a demand for insurance.