November 15, 2023
General Accident Insurance Co. Ja. Ltd. (GENAC) for the nine months ended September 30, 2023 reported a 37% increase in insurance revenue totaling $6.84 billion compared to $5.00 billion in the corresponding period last year. Insurance revenue for the third quarter had a 42% increase to close at $1.58 billion compared to $1.11 billion for the comparable quarter of 2022.
Insurance Service Expenses amounted to $3.74 billion (2022: 2.85 billion), this represents a increase of 31% year over year. Consequently, net expenses from reinsurance contracts held increased by 56% to $2.84 billion compared to $1.82 billion for the nine months ended September 30, 2022. GENAC booked net expenses from reinsurance contracts held of $102.22 million for the third quarter versus $128,000 reported for the similar quarter of 2022.
Insurance service result decreased by 20% to close at $262.50 million (2022: $327.81 million), while Net Changes In Unearned Premiums fell by 24% from $228.50 million in 2022 to $173.34 million in the period under review. As a result, net premium and investment result for the nine months ended September 30, 2023 amounted to $435.84 million, a 22% reduction relative to $556.31 million reported in 2022.
Other Income year to date, amounted to $194.65 million, a 285% increase relative to $50.51 million reported in 2022. Other Income for the third quarter amounted to 160.86 million (2022: $47.90 million). Other Operating Expenses totalled $311.59 million a 24% increase from the corresponding period last year. (2022: $251.20 million).
Profit before taxation for the nine months ended September 30, 2023, amounted to $318.90 million, a 10% slip relative to the $355.62 million reported for the same period in 2022. Profit before taxation for the third quarter amounted to 13.31 million (2022: $265.89 million).
Taxation for the nine months ended September 30, 2023 had a 16% decrease to reach $64.54 million (2022: $77.28 million) . Net Profit year to date amounted to $254.36 million, a 9% decrease from the $278.34 million reported in 2022. For the third quarter, Net Profit was $8.03 million (2022: $237.59 million). Net profit attributable to shareholders amounted to $253.35 million versus $258.44 million for the nine months ended September 30, 2022, a 2% reduction year over year.
Total Comprehensive Income for the period totalled $302.23 million, relative to the $250.66 million reported twelve prior. For the quarter, Total Comprehensive Income amounted to $41.79 million compared to the $183.15 million reported in 2022.
Consequently, Earnings Per Share for the nine months amounted to $0.29 (2022: EPS $0.22), while Earnings Per Share for the quarter totaled $0.06 (2022: EPS: $0.13). The twelve-month trailing EPS was $0.50 and the number of shares used in these calculations was 1,031,250,000.
Notably, GENAC’s stock price closed the trading period on November 15, 2023 at a price of $5.14 with a corresponding P/E ratio of 10.86x.
Balance Sheet Highlights
Total Assets increased by 6% to $10.05 billion as at September 30, 2023 from $9.49 billion a year ago. This was driven by the increase , ‘Reinsurance contract assets’ contributed to the increase closing at $2.13 billion (2022: $1.91 billion).
Shareholder’s equity was $3.18 billion (2022: $2.78 billion), representing a book value per share of $3.08 (2022: $2.69).
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