November 15, 2024
General Accident Insurance Co. Ja. Ltd.(GENAC)
Unaudited financials for the nine months ended September 30, 2024:
General Accident Insurance Co. Ja. Ltd. (GENAC) for the nine months ended September 30, 2024 reported a 21% increase in insurance revenue totaling $8.29 billion compared to $6.84 billion in the corresponding period last year. Insurance revenue for the third quarter had a 35% increase to close at $2.91 billion compared to $2.16 billion for the comparable quarter of 2023.
Insurance Service Expenses amounted to $5.37 billion (2023: $4.71 billion), this represents an increase of 14% year over year. Consequently, net expenses from reinsurance contracts held increased by 44% to $2.70 billion compared to $1.87 billion for the nine months ended September 30, 2023. The company booked net expenses from reinsurance contracts held of $1.25 billion for the third quarter versus $597.54 million reported for the similar quarter of 2023.
Insurance service result decreased by 18% to close at $215.20 million (2023: $262.50 million), while Net Changes In Unearned Premiums increased by 32% from $173.34 million in 2023 to $229.15 million in the period under review. As a result, Net premium and investment result for the nine months ended September 30, 2024 amounted to $444.35 million, a 2% increase relative to $435.84 million reported in 2023.
Other Income for the nine months ended September 30, 2024, amounted to $250.88 million, a 29% increase relative to $194.65 million reported in 2023. Other Income for the third quarter amounted to $97.51 million (2023: $160.86 million). Other Operating Expenses totaled $398.28 million a 28% increase from the corresponding period last year. (2023: $311.59 million).
Profit before taxation for the nine months ended September 30, 2024, amounted to $296.95 million, a 7% decrease relative to $318.90 million reported in 2023. Profit before taxation for the third quarter amounted to 86.43 million (2023: $13.31 million).
Taxation for the nine months ended September 30, 2024 had a 25% increase to reach $80.43 million (2023: $64.54 million) . Net Profit for the nine months amounted to $216.52 million, a 15% decrease from the $254.36 million reported in 2023. For the third quarter, Net Profit for the year was $57.41 million (2023: $8.03 million). Unrealized gains on FVOCI investments for the nine months ended September 30, 2024 had a 436% increase to reach $151.26 million (2023: $28.21 million). For the third quarter, Unrealized gains on FVOCI investments increased by 749% to total $187.82 million (2023: $22.12 million).
Foreign currency translation reserve increased by 47% to $28.87 million (2023: $19.66 million). Foreign currency translation reserve for the quarter totalled $84.39 million relative to the $11.64 million booked in the prior year’s quarter.
Total comprehensive income for the period totaled $396.65 million, relative to the $302.23 million reported twelve prior. For the quarter, Total comprehensive income amounted to $329.61 million compared to the $41.79 million reported in 2023.
Consequently, Earnings Per Share for the nine months amounted to $0.20 (2023: EPS: $0.25), while Earnings Per Share for the quarter totaled $0.06 (2023: EPS: $0.03). The twelve month trailing EPS was $0.48 and the number of shares used in these calculations was 1,031,250,000.
Notably, GENAC’s stock price closed the trading period on November 14, 2024 at a price of $6.44 with a corresponding P/E ratio of 13.41x.
Balance Sheet Highlights
The company’s assets totaled $12.28 billion (2023: $10.05 billion). The movement in total assets was mainly influenced by 162% increase in ‘Cash and cash equivalents’ amounting to $2.19 billion (2023: $837.38 million). Additionally there was a $657.15 million increase in ‘Reinsurance contract assets’ amounting to $2.83 billion ($2023: $2.13 billion). Shareholder’s equity was $4.03 billion (2023: $3.18 billion), representing a book value per share of $3.90 (2023: $3.08).
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