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).
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.