GENAC reports 6% increase in first quarter net profit

May 17, 2019

General Accident Insurance Company Limited (GENAC) for the three months ended March 31, 2019, reported Gross premium written of $2.69 billion, 22% higher than the $2.21 billion reported for 2018. Reinsurance ceded rose 21% to close at $2.11 billion relative to $1.75 billion booked in 2018. Excess of loss reinsurance trended downwards by 2% to $30.25 million (2018: $30.77 million).

As a result, net premium written increased by 26% from $430.59 million last year to $543.08 million.

Net changes in unearned premiums totaled $57.72 million, 12% lower than the $65.93 million recorded last year. Consequently, net premiums earned grew by 33% to a total of $485.36 million compared to $364.66 million for the prior year.

Commission income grew by 26%, year over year, from $187.30 million in 2018 to $236.18 million in 2018, while commission expenses increased by 25% from $115.72 million to $144.08 million.

Claims expenses saw an increase of 19%, closing the quarter at $294.21 million (2018: $248.08 million), while management expenses climbed by 12% to total $192.26 million compared to 2018’s total of $172.31 million.

Underwriting profit for the quarter totaled of $41.82 million, this compares to a loss of $7.26 million booked for the first three months of 2018.

Investment income closed at $31.01 million, a 28% decline when compared with last year’s corresponding quarter of $43.24 million, while other losses totaled $24.46 million for the quarter, relative to an income of $9.09 million in 2018. Other operating expenses grew by 11% to $11.32 million relative to $10.20 million in 2018.

Profit before taxation amounted to $37.05 million (2018: $34.88 million). Following taxes of $6.17 million (2018: $5.81 million), Net profit totaled $30.87 million for the quarter, an increase of 6% compared to the $29.07 million reported last year.

Total comprehensive loss amounted to $2.38 million (2018: $32.73 million) for the quarter ended March 31, 2019.

As such, earning per share for the period amounted to $0.030 (2017: $0.28). The trailing twelve months EPS amounted to $0.29. The stock traded at $4.11 as at May 17, 2019. The number of shares used in our calculations amounted to 1,031,250,000 units.

Balance Sheet at a glance:-

Total Assets increased by 18% to $7.53 billion as at March 31, 2019 from $6.39 billion a year earlier. ‘Investment Securities’ contributed the most to the growth in assets with a 42% increase to $2.82 billion relative to $1.986 billion in 2018.  Due from reinsurers and coinsurers also contributed to the increase with a 41% growth year over year to close at $1.90 billion (2018: $1.35 billion). However this was offset by the decline ‘Cash & Short Term Investments’ by $206.68 million to close the period at $436.69 million (2018: $643.37 million).

Shareholder’s Equity as at March 31, 2019 stood at $2.05 billion (2018: $1.95 billion) resulting in book value per share of $1.99 (2017: $1.89).

 

 

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2019-05-17T17:18:56+00:00