General Accident Insurance Company Limited (GENAC)
For the year ended September 2017:-
GENAC reported Gross premium written of $6.18 billion, 18% higher than the $5.23 billion reported for 2016. As a result, net premium written increased by 18% from $886.26 billion last year to $1.04 billion. Excess of loss reinsurance trended down by 1% to $70.38 million (2016: $70.94 million). Net premium written for the third quarter amounted to $369.96 million relative to $300.97 million booked for the corresponding period in 2016.
Reinsurance ceded amounted to $5.07 billion relative to $4.27 billion in 2016, a 19% increase year over year.
Net changes in unearned premiums totaled $78.18 million, 142% higher than the $32.28 million recorded last year. Consequently, net premiums earned grew by 13% to a total of $965.12 billion compared to $853.98 billion for the same period last year. for the quarter, net premium earned totaled $347.35 million compared to $312.92 million booked for the similar quarter of 2016.
Commission income grew by 16%, year over year, from $282.31 million in 2016 to $328.66 million in 2017, while commission expenses increased by 15% from $205.79 million to $236.04 million.
Claims expenses saw an increase of 30%, closing the period at $788.15 million (2016: $607.22 million), while management expenses climbed by 22% to total $409.56 million compared to the 2016 total of $335.58 million. Net change in commission totaled $105.15 million for the nine months compared to $5.72 million booked in 2016.
Underwriting loss for the period totaled of $34.83 million, this compares to a loss of $6.58 million in 2016. The company however made an underwriting profit of $33.15 million (2016: $36.48 million).
Investment income closed at $146.33 million, a 56% decline when compared with last year’s $335.40 million, while other income totaled $1.95 million, (2016: $3.53 million). Other operating expenses grew by 8% to $22.41 million relative to $20.69 million in 2016.
Profit before taxation amounted to $91.04 million (2016: $311.66 million). Net Profit totaled $76.78 million for the period, a decline of 75% compared to the $311.60 million reported last year, following tax charges of $14.26 million. Net profit for the quarter was $68.44 million a 72% less than the same period of 2016 which had net profits of $243.41 million.
Total comprehensive income amounted to $130.42 million (2016: $311.60 million), following a gain on available investments for sale of 53.64 million.
As such, Earning per share for the period amounted to $0.07 (2016: $0.30) while EPS for the quarter amounted to $0.07 compared to $0.24 in 2016. The twelve months trailing EPS is $0.15. The stock traded at $2.70 as at November 14, 2017. The number of shares used in our calculations amounted to 1,031,250,000 units.
Balance Sheet at a glance:-
Total Assets increased by 10.17% to $5.37 billion as at September 2017 from $4.88 billion a year ago.
Shareholder’s Equity as at September 2017 stood at $1.89 billion (2016: $1.89 billion) resulting in book value per share of $1.84 (2016: $1.84).
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