CABROKERS reports first quarter net profit of $17.03 million

May 12, 2023

Caribbean Assurance Brokers (CABROKERS), for the three months ended March 31, 2023, reported revenue of $101.86 million compared to the $90.60 million booked for the corresponding period in the prior year, reflecting a 12% increase. According to CAB the increase in revenue is due to, “The International Department saw an increase of 1% year over year while Individual Life saw a reduction of 23%. These results are reflective of our revenue diversification strategy. The General and Employee benefits divisions have grown at a faster pace than the International Division- our largest revenue earner to date.”

Strict management led to operating expenses closing at $95.41 million, representing a reduction of 6% relative to the $101.46 million recorded in the prior year. The Company noted, “The first quarter expenses included the hiring of professionals in the areas of Risk Management, Internal Audit and Data Protection in order to ensure that we are compliant by November 30th 2023; which cumulatively resulted in an increase of $4.7 million.”

Operating profit amounted to $18.57 million relative to an operating profit of $3.52 million in the prior comparable quarter.

Finance cost decreased 45% to total $593,176 (2022: $1.07 million), mainly due to a reduction in interest charges on lease liability.

Consequently, profit before taxation amounted to $17.97 million compared to a profit of $2.45 million in 2022. After incurring tax charges of $938,591 (2022: 634,920), net profit amounted to $17.03 million, compared to a net profit of $1.81 million in the prior corresponding period.

Earnings per share (EPS) closed the period at $0.06 relative to EPS of $0.01 the prior year. The trailing twelve months EPS amounted to $0.36. The total number of shares used in the computation amounted to 262,500,000 units. Notably, CABROKERS last traded on May 12, 2023 at a price of $2.88 with a corresponding P/E of 8.11x.

CABROKERS noted, “As part of our mandate to offer value-added services to our clients, we have partnered with Island Legal Wills, a company that provides a convenient online platform for our clients to create their own professional, legally binding wills. This service is available through our CAB Loyalty Programme.”

Balance Sheet Highlights:

As at March 31, 2023, the Company’s assets totalled $832.45 million (2022: $683.89 million), 22% more than its value as at March 31, 2022. This was due to a 35% increase in ‘Cash and bank balances’ which amounted to $384.83 million (2022: $285.89 million).

Total Shareholders’ Equity totalled $480.20 million (2022: $390.35 million), which translated to a book value of $1.83 (2022: $1.49).


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