February 17, 2023

General Accident Insurance Company Limited (GENAC), for the year ended December 31, 2022 reported gross premium written of $15.11 billion, 8% higher than the $13.96 billion reported for 2021. Reinsurance ceded also rose by 8% to close at $11.33 billion relative to $10.49 billion booked in 2021. Excess of loss reinsurance trended up by 30% to $282.64 million (2021: $216.99 million).

As a result, net premium written increased by 8% from $3.25 billion last year to $3.50 billion for the year ended December 31, 2022. Net premium written for the fourth quarter amounted to $983.35 million relative to $921.57 million booked for the corresponding period in 2021.

Net changes in unearned premiums totalled $125.90 million, 43% lower than the $221.21 million recorded last year. Consequently, net premiums earned, for the year ended December 31, 2022, grew by 11% to a total of $3.37 billion compared to $3.03 billion for the prior year. For the quarter, net premium earned totalled $851.01 million compared to $854.36 million booked for the similar quarter of 2021.

Underwriting profit for the year totalled $427.33 million, this compares to a profit of $80.32 million in 2021. The company also made an underwriting profit of $217.22 million relative to a loss of $71.97 million within the fourth quarter.

Investment income closed at $361.37 million, a increase of 60% when compared with last year’s $226.53 million, while other income totalled $42.27 million, relative to $124.59 million in 2021.

Profit before taxation amounted to $665.04 million (2021: $259.70 million). Following taxes of $76.92 million (2021: $110.46 million), net profit totalled $588.12 million for the year ended December 31, 2022 a 294% increase when compared to the $149.24 million reported last year. Net profit for the quarter was $310.83 million relative to the loss of $5.87 million booked in the corresponding quarter in 2021.

Profit attributable to shareholders amounted to $533.34 million (2021: $254.75 million), while for the quarter, profit attributable to shareholders totalled $276.23 million (2021: loss of $7.12 million).

Total comprehensive income amounted to $557.52 million (2021: $143.80 million) for the year ended December 31, 2022. For the fourth quarter, total comprehensive profit amounted to $316.75 million in comparison to the loss of $72.47 million in 2021.

As such, earning per share for the period amounted to $0.52 (2021: $0.25), while EPS for the quarter amounted to $0.27 compared to an LPS of $0.05 in 2021. The number of shares used in our calculations amounted to 1,031,250,000 units. The stock traded at $4.14 as at February 16, 2023 with a corresponding P/E ratio of 8.01 times.

Balance Sheet at a glance:

Total assets increased to $12.55 billion as at December 31, 2022 from $12.50 billion a year earlier. ‘Investment Securities’ and ‘Due from policyholders, brokers and agents’ contributed the most to the growth in assets to close at $3.19 billion (2021: $3.10 billion) and $1.77 billion (2021: $1.42 billion), respectively.

Shareholder’s equity as at December 31, 2022 stood at $2.88 billion (2021: $2.63 billion) resulting in book value per share of $2.79 (2021: $2.55)

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.