Key Insurance Company Limited (KEY)

Unaudited financials for the six months ended June 30, 2024:

Key Insurance Company Limited (Key) for the six months ended June 30, 2024 reported a 13% increase in Insurance Revenue totaling $1.46 billion compared to $1.29 billion in the corresponding period last year. Insurance Revenue for the second quarter had a 8% increase to close at $760.41 million compared to $704.75 million for the comparable quarter of 2023.

Insurance service expenses amounted to $1.02 billion (2023: $881.24 million), this represents an increase of 16% year over year. Consequently, net expenses from reinsurance contracts held increased by 2% to $464.06 million compared to $455.27 million for the six months ended June 30, 2023. The company booked net expenses from reinsurance contracts held of $255.98 million for the second quarter versus $280.23 million reported for the similar quarter of 2023.

Insurance Service Result increased by 35% to close at $30.46 million (2023: $46.75 million), while Interest revenue from financial Assets increase by 31% from $91.22 million in 2023 to $119.54 million in the period under review. As a result, net insurance and investment result for the six months ended June 30, 2024 amounted to $89.09 million, a 100% increase relative to $44.47 million reported in 2023.

Other income for the six months ended June 30, 2024, amounted to $18.47 million, a 30% decrease relative to $26.56 million reported in 2023. Other income for the second quarter amounted to $11.14 million (2023: $14.91 million).

Other operating expenses totalled $69.08 million a 34% increase from the corresponding period last year. (2023: $51.66 million) while Profit Before Taxation totalled $38.48 million a 99% increase from the corresponding period last year. (2023: $19.37 million)

Taxation for the six months ended June 30, 2024, amounted to $12.74 million, a 97% increase relative to $6.46 million reported in 2023. Taxation for the second quarter amounted to $7.90 million (2023: $4.69 million). Net profit for the six months ended June 30, 2024 had a 99% increase to reach $25.74 million (2023: $12.91 million) . Total Comprehensive income  for the six months amounted to $25.74 million, a 99% increase from the $12.91 million reported in 2023. For the second quarter, Total Comprehensive income  was $15.80 million (2023: $9.38 million).

Consequently, Earnings Per Share for the six months amounted to $0.05 (2023: EPS: $0.02), while Earnings Per Share for the quarter totaled $0.03 (2023: EPS: $0.02). The twelve month trailing EPS was $0.10 and the number of shares used in these calculations was 559,323,101.

Notably, Key’s stock price closed the trading period on August 02, 2024 at a price of $2.15 with a corresponding P/E ratio of 21.96x.

Balance Sheet Highlights

The company’s assets totalled $4.37 billion (2023: $3.99 billion). The moderate increase to the company’s total assets was brought upon by Cash and Deposits totalling to $1.13 billion, an 89% increase from last year’s $598.65 million.  There was also a major decrease in our Due from reinsurers which lessened to $43.42 million which is an 85% decrease compared to last year’s $286.12 million.

Shareholder’s equity was $1.36 billion (2023: $1.28 billion), representing a book value per share of $2.44 (2023: $2.29).