August 17, 2023
General Accident Insurance Co. Ja. Ltd. (GENAC) for the six months ended June 30, 2023 reported a 36% increase in insurance revenue totalling $5.26 billion compared to $3.88 billion in the corresponding period last year. Insurance revenue for the Second quarter had a 33% increase to close at $2.37 billion compared to $1.78 billion for the comparable quarter of 2022.
Insurance Service Expenses amounted to $2.20 billion (2022: $1.96 billion), this represents an increase of 13% year over year. Consequently, net expenses from reinsurance contracts held increased by 51% to $2.73 billion compared to $1.82 billion for the Six months ended June 30, 2022. The company booked net expenses from reinsurance contracts held of $1.06 billion for the second quarter versus $746.30 million reported for the similar quarter of 2022.
Insurance service result increased by 194% to close at $323.42 million (2022: $110.02 million), while Net investment income decreased by 10% from $146.05 million in 2022 to $131.68 million in the period under review. As a result, net premium and investment result for the Six months ended June 30, 2023 amounted to $455.10 million, a 78% increase relative to $256.07 million reported in 2022.
Other Income for the Six months ended June 30, 2023, amounted to $33.79 million, a 1197% increase relative to $2.61 million reported in 2022. Other expense for the Second quarter amounted to $12.24 million (2022: $51.25 million). Other Operating Expenses totalled $183.30 million a 9% increase from the corresponding period last year. (2022: $168.94 million).
Profit before taxation for the Six months ended June 30, 2023, amounted to $305.59 million, a 241% increase relative to $89.73 million reported in 2022. Profit before taxation for the Second quarter amounted to $248.84 million (2022: $91.55 million).
Taxation for the Six months ended June 30, 2023 had a 21% increase to reach $59.26 million (2022: $48.98 million). As such, Net Profit for the year for the Six months amounted to $246.33 million, a 504% increase from the $40.75 million reported in 2022. For the Second quarter, Net Profit for the year was $192.83 million (2022: $44.53 million).
Unrealised gains on FVOCI investments for the Six months ended June 30, 2023 grew to $6.09 million (2022: losses of $8.40 million). For the Second quarter, Unrealised losses on FVOCI investments totalled $60.06 million (2022: $29.12 million).
Foreign currency translation reserve decreased by 77% to $8.02 million (2022: $35.15 million). Foreign currency translation reserve for the quarter totalled $1.05 million relative to gains of $4.39 million booked in the prior year’s quarter.
Total Comprehensive income for the period totalled $260.44 million, relative to the $67.51 million reported twelve months prior. For the quarter, Total Comprehensive income amounted to $131.72 million compared to the $19.80 million reported in 2022.
Total Comprehensive income attributable to owners of the company for the period totalled $234.83 million versus $91.32 million reported twelve months prior. For the quarter, Total Comprehensive income attributable to owners of the company amounted to $105.20 million compared to the loss of $8.48 million reported in 2022.
Consequently, Earnings Per Share for the Six months amounted to $0.22 (2022: EPS: $0.07), while Earnings Per Share for the quarter totalled $0.16 (2022: EPS: $0.05). The twelve-month trailing EPS was $0.78 and the number of shares used in these calculations was 1,031,250,000.
Notably, GENAC’s stock price closed the trading period on August 16, 2023 at a price of $4.50 with a corresponding P/E ratio of 5.78x.
Balance Sheet Highlights
The company’s assets totalled $9.42 billion (2022: $8.67 billion). The 9% increase in total assets was primarily due to ‘Reinsurance Contract Assets’ growing $673.37 million to close $1.74 billion versus $1.06 billion reported in 2022.
Shareholder’s equity was $3.12 billion (2022: $2.69 billion), representing a book value per share of $3.02 (2022: $2.61).
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