February 26, 2021
Mr. Barrington Whyte, Director at Caribbean Assurance Brokers, highlighted the Company’s financial performance for the third quarter of 2019. Mr. Whyte stated that, “the 2019 financial year has been a solid year for Caribbean Assurance Brokers Limited”. Notably, the performance was due to the company experiencing growth in three out of its four divisions, with two divisions achieving growth in excess of 10% and the other division achieving a 5% growth in commission; which led to revenues climbing by 4% to $401.48 million (2018: $385.46 million), while net profit grew by 18% to $38.63 million (2018: $32.82 million). In addition, total assets increased by 54% to $476.47 million (2018: $308.55 million) and Shareholders Holdings during the period increased by 64% to $212.03 million (2018: $129.39 million).
It was to be noted that, Caribbean Assurance Brokers, added new products to its product line which includes ‘International Insurance’ and ‘Credit Union New Health Plan’. Effective February 15, 2020, Caribbean Assurance Brokers Limited partnered with Sutton Special Risk, a Managing General Underwriter, Lloyd’s Cover holder and Third Party Administrator offering an extensive suite of services. Additionally, the Credit Union Gold Series which falls under the ‘Credit Union New Health Plan’ offers local health insurance to credit union members through the Jamaica Cooperative Credit Union League (JCCUL).
For the period January to September of the 2020 financial year, Caribbean Assurance Brokers recorded three quarters of fluctuating revenues in which revenues amounted to $70.10 million at the end of March and closed at $74.06 million at the end of September after decreasing to $69.52 million at the end of the June period. The Company’s bottom line followed the same trend in which Caribbean Assurance Brokers reported quarterly net losses of $4.64 million as at March 2020, $8.81 million as at June 2020 and losses of $9.94 million as at the end of September 2020.
Notably, for the third quarter of 2020, the Company experienced a decline in revenue which was attributable to the following:
- “Reduction in commission for the Individual Life Division.”
- “Reduction in commission from our International Health Division due to a change in the International Comprehensive Insurance Programme (ICHIP) policy year renewal from August 2020 to November 2020.”
The Company mentioned that due to the effect of the pandemic, the overall performance of CABROKERS was negatively impacted. Mr. Whyte mentioned that, “the impact of the pandemic on the Company’s product lines from the second quarter onwards were as follows:
- Reduced commission from all lines of business
- Inability for our producers to go out and meet with prospective clients
- Overseas insurance partner-imposed restriction on new businesses
- Travel restrictions and the closing of the borders impacted our Assured Travel product
As such, Caribbean Assurance Brokers implemented a ‘swift’ response plan for the pandemic, which includes:
- Safety measures, as recommended by the Government to protect staff and our customers in office
- Work from homes measures
- Staff rotation
- Retention of the full staff complement
As Caribbean Assurance Brokers continue to respond to Covid-19, the Company is forced to pivot business operations, such as:
- Development of a new website
- Increased social media presence
- E-commerce development for on-line payment
- Development of new digitized product offerings
- Change the method of operations to virtual meetings and presentations for both internal and external meetings
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