Date: August 15, 2018
General Accident Insurance Company Limited (GENAC) reported Net Premium Written of $839.89 million, a 25% increase from the $673.34 million reported in 2017. This increase was driven by a 2% increase in Gross Premium Written to $4.65 billion for the period, up from the $4.55 billion in 2017. In addition, Reinsurance ceded declined by 2% totaling $3.75 billion relative to $3.82 billion in 2017. Excess of Loss Reinsurance Cost however remained the same at $53.57million (2017: $53.57 million).
Net Changes in Unearned Premiums for the period totaled $72.62 million, compared to $55.57 million that was recorded last year. This resulted in Net Premium Earned of $767.27 million for the period relative to $617.77 million in 2017, a 24% increase. Net premium earned for the quarter totaled $402.61 million, a 28% increase on the $313.71 million reported for 2017’s corresponding quarter.
Commission Income went up by 34% for the six months ended June 30, 2018, from $250.97 million in 2017 to $336.18 million, while Commission Expenses increased by 28% from $169.12 million to $216.18 million.
Claims Expenses saw a 5% decline, closing the period at $513.20 million (2017: $539.04 million), while Management Expenses rose 29% to total $352.44 million from $272.23 million in 2017.
As a result, GENAC reported an underwriting loss of $7.67 million for the period compared to a loss of $67.95 million in 2017.
Investment Income closed at $84.79 million, moving down 6% when compared with last year’s $90.45 million. Other Income however grew significantly to $58.32 million for the period relative to $3.41 million in 2017.
In addition, other operating expenses went up by 46% to total $20.90 million for the period relative to $14.33 million in 2017.
Profit before Taxation amounted to $114.53 million (2017: $11.58 million). Taxation for the period was $19.09 million (2017: $3.24 million). Consequently, Net Profit totaled $95.44 million relative to $8.34 million in 2017; representing a 1044% increase. Net profit for the quarter totaled $66.38 million, a 836% surge relative to $9.02 million reported in 2017.
As such, EPS for the period is $0.09 (2017: $0.01). The twelve month trailing EPS amounted to $0.30. The number of shares used in our calculations amounted to 1,031,250,000 units. GENAC’s stock price last traded at $3.68.
Balance Sheet Highlights:-
Total Assets increased by 11% to $6.23 billion as at June 30, 2018 from $5.62 billion a year ago. ‘Due from Policyholders, brokers and agents’ and ‘Investment Securities’ contributed to the overall rise to close the period at $789.21 million (2017: $559.09 million) and $2.09 billion (2017: $1.82 billion) respectively. ‘Cash & Short Term Investments’ however tempered the overall growth with a 45% decline to $64.28 million (2017: $1.18 billion).
Shareholder’s Equity as at June 30, 2018 stood at $2.02 billion (2017: $2.05 billion), resulting in book value per share of $1.96 (2017: $1.99).
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