August 16, 2021
GENAC for the six months ended June 30, 2021, reported Gross premium written of $7.64 billion, 23% higher than the $6.21 billion reported for 2020. Reinsurance ceded rose 24% to close at $6.01 billion relative to $4.84 billion booked in 2020. Excess of loss reinsurance trended upwards by 31% to $103.06 million (2020: $78.64 million).
As a result, net premium written increased by 18% from $1.30 billion last year to $1.53 billion. Net premium written improved 14% within the second quarter to $695.46 million (2020: $609.57 million).
Consequently, net premiums earned for the six months period grew by 8% to a total of $1.46 billion compared to $1.36 billion for the prior year. While net premiums earned for the quarter also increased by 8% to a total of $737.86 million (2020: $684.74 million).
Commission income rose by 25%, year over year, from $373.22 million in 2020 to $465.57 million in 2021, while commission expenses increased by 9% from $249.19 million in 2020 to $270.71 million for the six months period.
Claims expenses saw a decrease of 9%, closing the six months period at $811.59 million (2020: $887.30 million), while management expenses climbed by 18% to total $671.11 compared to 2020’s total of $570.55 million.
Underwriting profit for the six months totalled of $168.96 million, this compares to an underwriting profit of $21.22 million booked in 2020. For the quarter, GENAC’s underwriting profit totaled $142.67 million in comparison to a loss of $21.61 million in 2020.
Investment income closed at $102.96 million, a 15% improvement when compared with last year’s corresponding total of $89.68 million, while other income totalled $35.79 million for the period, relative to an income of $81.03 million in 2020. Other operating expenses grew by 58% to $74.04 million relative to $46.81 million in 2020.
Profit before taxation amounted to $230.97 million (2020: $142.41 million), up 62% year over year. Following taxes of $56.61 million (2020: $29.92 million). Net profit totalled $174.37 million for the period, an increase of 55% compared to the $112.49 million reported last year. Net profit for the quarter totaled $158.84 million, compared to the $37.77 million reported last year. Net profit attributable to shareholders amounted to $202.36 million (2020: $129.91 million). While net profit attributable to shareholders for the quarter closed at $166.30 million (2020: $53.86 million).
Total comprehensive income (TCI) year to date amounted to $232.94 million (2020: $45.47 million) for the period ended June 30, 2021. TCI for the quarter booked $217.28 million versus a loss of $22.88 million in 2020.
As such, earning per share (EPS) for the period amounted to $0.20 (2020: $0.13) while EPS for the quarter amounted to $0.16 (2020: $0.05). The trailing twelve months EPS amounted to $0.31. The number of shares used in our calculations amounted to 1,031,250,000 units. The stock traded at $5.66 as at August 16, 2021 with a corresponding P/E of 18.53 times.
Balance Sheet at a glance:-
Total Assets increased by 4% to $11.47 billion as at June 30, 2021 from $11 billion a year earlier. The movement was mainly due to ‘Loans Receivables’ which closed the period at $320.58 million relative to nil in 2020.
Shareholder’s Equity as at June 30, 2021 stood at $2.84 billion (2020: $2.63 billion) resulting in book value per share of $2.75 (2020: $2.55).
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