GENAC reports 42% increase in six months net profits

Date: August 16, 2019 

GENAC for the six months ended June 30, 2019, reported Gross premium written of $6.57 billion, 41% higher than the $4.65 billion reported for 2019. Reinsurance ceded rose 45% to close at $5.45 billion relative to $3.75 billion booked in 2018. Excess of loss reinsurance trended upwards by 26% to $67.73 million (2018: $53.57 million).

As a result, net premium written increased by 25% from $839.89 million last year to $1.05 billion.

Net changes in unearned premiums totaled $60.16 million, 17% lower than the $72.62 million recorded last year. Consequently, net premiums earned for the six months period grew by 29% to a total of $988.67 million compared to $767.27 million for the prior year. While net premiums earned for the quarter increased by 25% to a total of $503.31 million (2018: $402.61 million).

Commission income grew by 21%, year over year, from $336.18 million in 2018 to $406.04 million in 2019, while commission expenses increased by 20% from $216.18 million to $259.65 million for the six months period.

Claims expenses saw an increase of 23%, closing the six months period at $632.83 million (2018: $513.20 million), while management expenses climbed by 19% to total $419.14 million compared to 2018’s total of $352.44 million.

Underwriting profit for the six months totaled of $80.97 million, this compares to a loss of $7.67 million booked in 2018. While for the quarter, underwriting profit totaled $39.16 million in comparison to a loss of $410,000 in 2018.

Investment income closed at $79.07 million, a 7% decline when compared with last year’s corresponding period of $84.79 million, while other income totaled $38.25 million for the period, relative to an income of $58.32 million in 2018. Other operating expenses grew by 66% to $34.73 million relative to $20.90 million in 2018.

Profit before taxation amounted to $163.56 million (2018: $114.53 million). Following taxes of $28.28 million (2018: $19.09 million). Net profit totaled $135.28 million for the period, an increase of 42% compared to the $95.44 million reported last year. While net profit for the quarter totaled $104.41 million, an increase of 31% compared to the $79.65 million reported last year.

Total comprehensive income amounted to $131.29 million (2018: $100.15 million) for the period ended June 30, 2019. While total comprehensive income for the quarter booked $104.41 million (2018: $80.70 million).

As such, earning per share (EPS) for the period amounted to $0.13 (2018: $0.09) while EPS for the quarter amounted to $0.10 (2018: $0.08). The trailing twelve months EPS amounted to $0.33. The number of shares used in our calculations amounted to 1,031,250,000 units. The stock traded at $5.15 as at August 15, 2019.

Balance Sheet at a glance:-

Total Assets increased by 26% to $7.86 billion as at June 30, 2019 from $6.22 billion a year earlier. ‘Investment Securities’ contributed to the growth in assets with a 49% increase to $3.10 billion relative to $2.09 billion in 2018.  ‘Due from reinsurers and coinsurers’ also contributed to the increase with a 59% growth year over year to close at $2.05 billion (2018: $1.29 billion). However this was offset by the decline in ‘Cash & Short Term Investments’ by $454.78 million to close the period at $189.50 million (2018: $644.28 million).

Shareholder’s Equity as at June 30, 2019 stood at $2.19 billion (2018: $2.02 billion) resulting in book value per share of $2.12 (2018: $1.95).

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