GENAC reported 88% decline in second quarter net profit

General Accident Insurance Company Limited (GENAC)

For the six months ended June 30, 2017:

  • GENAC reported net premium written of $673.34 million, 15% more than the $585.29 million reported for 2016. This was as a result of a 4% increase in gross premium written to $4.55 billion (2016: $4.37 billion), while reinsurance ceded increased by 3% from $3.73 billion last year to $3.82 billion. Excess of loss reinsurance grew by 4% to $53.57 million from $51.51 million.


  • Net changes in unearned premiums totaled $55.57 million, 26% more than the $44.23 million recorded last year. Consequently, net premiums earned grew by 14% to a total of $617.78 million compared to $541.06 million for the same period last year.


  • Commission income increased by 5%, year over year, from $239.37 million in 2016 to $250.97 million while commission expenses increased by 19% from $142.57 million in 2016 to $169.12 million.


  • Claims expenses saw an increase of 14%, closing the period at $539.04 million (2016: $474.49 million) while management expenses rose by 26% to total $272.23 million compared to the 2016 total of $216.19 million. Net change in commission totaled $43.70 million, 347% higher than $9.77 million reported last year.


  • Underwriting loss for the period totaled $67.95 million, compared to a loss of $43.05 million in 2016.


  • Investment Income closed at $90.45 million, a 1% decline when compared with last year’s $91.03 million, while other income totaled $3.42 million, a significant decline when compared to the $34.23 million reported for the same period last year. Other operating expenses grew by 2% to $14.33 million relative to $13.99 million in 2016.


  • Profit before taxation amounted to $11.58 million (2016: $68.22 million). Net Profit totaled $8.34 million for the period, a decrease of 88% compared to the $68.19 million reported last year, following tax charges of $3.2 million (2016: $30,000). Net loss for the second quarter amounted to $9.02 million relative to profit of $47.07 million in 2016.


  • As such, Earning per share for the six months amounted to $0.008 (2016: $0.066) while loss per share for the quarter amounted to $0.009 compared to $0.046 in 2016. The twelve-month trailing EPS amounted to $0.317. The number of shares used in our calculations amounted to 1,031,250,000 units.


Balance Sheet at a glance:-

  • Total Assets increased by 12% to $5.62 billion as at June 30, 2017 from $5.03 billion a year ago.


  • Shareholder’s Equity as at June 30, 2017 stood at $2.05 billion (2016: $1.89 billion) resulting in book value per share of $1.99 (2016: $1.84).






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