CABROKERS reports nine months net profit of $78.94 million

November 10, 2021

Caribbean Assurance Brokers (CABROKERS), for the nine months ended September 30, 2021, reported revenue of $356.74 million compared to the $213.67 million for the prior year, an 67% increase. Other revenue for the period amounted to $35.70 million (2020: 19.27 million). Total revenue for the nine months closed at $392.44 million relative to $232.94 million in 20202. For the quarter, total revenue went up by 185% closing at $205.45 million (2020: $74.01 million). According to management this increase is mainly due to, “was mainly attributable to the International Insurance Division which earned $131.15m. Employee Benefits Division earned a 20%, or $5m increase and General Insurance Division a 22% or $2.3m increase over the prior year comparative period.”

Total operating expenses totalled $307.72 million for the nine months ended September 30, 2021, representing an increase of 23% on the $249.22 million recorded in the prior year. Of this, administrative expenses amounted to $193.02 million, 16% higher when compared to the $166.86 million in 2020. Selling expenses recorded a 39% increase for the nine months totalling $114.71 million (2020: $82.36 million). CARBROKERS notes, “Areas that contributed to the increases in expenses included staff costs, product development initiatives, repairs and maintenance, registration fees arising from increased license and regulatory feed and depreciation on additions to property, plant and equipment.” For the quarter, total operating expenses closed the period at $121.49 million (2020: $86.43 million).

Operating profit, therefore, amounted to $84.72 million for the nine months ended September 30, 2021 (2020: operating loss, $16.297 million). For the third quarter ended September 30, 2021, CABROKERS booked an operating profit of $102.91 million relative to a loss of $7.64 million for the same quarter in 2020.

Finance cost amounted to $4.37 million (2020: $3.97 million), while, for the quarter, finance cost closed at $1.39 million versus $1.26 million in the previous comparable quarter.

Consequently, profit before taxation amounted to $80.35 million compared to a loss of $20.26 million in 2020. After incurring tax charges of $1.40 million (2020: $3.13 million), net profit amounted to $78.94 million compared to a loss of $23.39 million booked in the prior corresponding period. For the quarter, the Company reported a net profit of $100.26 million relative to a net loss of $9.94 million in the third quarter of 2020.

Total comprehensive profit amounted to $78.94 million compared to a loss of $23.39 million recorded in 2020. While for the quarter, total comprehensive profit was $100.26 million relative to a loss of $9.94 million in 2020.

Earnings per share (EPS) closed the period at $0.30 (2020 LPS: $0.09), while for the quarter, the earnings per share (EPS) was $0.38 (2020 LPS: $0.04). EPS for the trailing twelve months amounted $0.51. The total number of shares used in the computation amounted to 262,500,000 units. Notably, CABROKERS closed the trading period on November 9, 2021 at a price of $1.73 with a corresponding P/E of 3.39 times.

 

Balance Sheet Highlights:

As at June 30, 2021, the Company’s assets totalled $1.23 billion (2020: $706.41 million), 59% more than its value as at September 30, 2021. This was due to largely to increases in ‘Cash and cash balances’, ‘Property, plant and equipment’ and ‘Rights of use’ which amounted to $711.60 million (2020: $289.23 million), $247.39 million (2020: $239.70 million) and $16.66 million (2020: $6.51 million), respectively.

Total Shareholders’ Equity totalled $411.35 million (2020: $277.46 million), which translated to a book value of $1.57 per share (2020: $1.06).

 

 

 

 

 

 

 

 

 

 

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2021-11-10T08:43:59-05:00