CABROKERS reports first quarter net profit of $1.81 million

May 2, 2022

Caribbean Assurance Brokers (CABROKERS), for the three months ended March 31, 2022, reported revenue of $90.60 million compared to the $75.08 million booked for the corresponding period in the prior year, reflecting a 21% increase. According to CAB increase in revenue is due to, “the International Insurance Division which saw increased new business activities; the individual Life Division which saw an increase of 33%. Other income also saw an increase of $2.1 million or 17%.”

Other operating income totalled $14.39 million (2021: $12.26 million) for the three months ended March 31, 2022. As such, total operating income amounted to $104.99 million (2021: $87.34 million) for the three months ended March 31, 2022.

Total operating expenses closed at $101.46 million for the three months ended March 31, 2022, representing an increase of 9% on the $93.29 million recorded in the prior year. Of this, Administrative expenses amounted to $65.66 million, 4% higher when compared to the $63.30 million in the same quarter of 2021. Selling expenses recorded an increase of 19% for the three months, totalling $35.81 million (2021: $29.99 million). The Company explained that the increase in operating expenses is due to increased, “in professional fees, audit fees, repairs and maintenance as well as staff related costs as we boost human resources capabilities to prepare for continued growth in demand.”

Operating income, therefore, amounted to $3.52 million for the three months ended March 31, 2022 relative to an operating loss of $5.95 million the prior comparable quarter.

Finance cost decreased 28% to total $1.07 million (2021: $1.48 million), mainly due to paydown on existing mortgage loan.

Consequently, profit before taxation amounted to $2.45 million compared to a loss of $7.43 million in 2021. After incurring tax charges of $634,920 (2021: 448,752), as a result net profit amounted to $1.81 million, compared to a net loss of $7.88 million in the prior corresponding period.

Total comprehensive income amounted to $1.81 million compared to a total comprehensive loss of $7.88 million recorded twelve months earlier.

Earnings per share (EPS) closed the period at $0.01 relative to a loss per share of $0.03 the prior year. The trailing twelve months EPS amounted to $0.25. The total number of shares used in the computation amounted to 262,500,000 units. Notably, CABROKERS closed the trading period on May 2, 2022 at a price of $2.50 with a corresponding P/E of 9.97 times.

CABROKERS noted, “Our focus for the remainder of the year is to complete the implementation of our system that will see improved customer services delivery.”

Balance Sheet Highlights:

As at March 31, 2022, the Company’s assets totalled $683.89 million (2021: $573.68 million), 19% more than its value as at March 31, 2021. This was due to a 97% increase in ‘Cash and bank balances’ which amounted to $285.89 million (2021: $144.93 million).

Total Shareholders’ Equity totalled $390.35 million (2021: $324.52 million), which translated to a book value of $1.49 per share (2021: $1.24).


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