GENAC reports 75% decline in six months net profit attributable to shareholders

August 16, 2022

GENAC for the six months ended June 30, 2022, reported Gross premium written of $9.83 billion, 29% higher than the $7.64 billion reported for 2021. Reinsurance ceded rose 34% to close at $8.06 billion relative to $6.01 billion booked in 2021. Excess of loss reinsurance trended upwards by 26% to $130.35 million (2021: $103.06 million).

As a result, net premium written increased by 7% from $1.53 billion last year to $1.64 billion. Net premium written improved 9% within the second quarter to $758.25 million (2021: $695.46 million).

During the period under review Net changes in unearned premiums amounted to $23.45 million (2021: $69.37 million). Consequently, net premiums earned for the six months period grew by 11% to a total of $1.61 billion compared to $1.46 billion for the prior year. While net premiums earned for the quarter rose by 9% to a total of $803.76 million (2021: $737.86 million).

Commission income rose by 8%, year over year, from $465.57 million in 2021 to $504.72 million in 2022, while commission expenses increased by 4% from $270.71 million in 2021 to $281.45 million for the six months period.

Claims expenses saw a 25% increase, closing the six months period at $1.02 billion (2021: $811.59 million), while management expenses climbed by 21% to total $809.77 million compared to 2021’s total of $671.11 million.

Underwriting profit for the six months totalled of $7.97 million, this compares to an underwriting profit of $168.96 million booked in 2021. For the quarter, GENAC’s underwriting loss totaled $13.44 million in comparison to a profit of $142.67 million in 2021.

Investment income closed at $159.69 million, a 55% improvement when compared with last year’s corresponding total of $102.96 million, while other loss totalled $14.72 million for the period, relative to an income of $35.79 million in 2021. Other operating expenses grew by 13% to $83.74 million relative to $74.04 million in 2021.

Profit before taxation amounted to $66.17 million (2021: $230.97 million), down 71% year over year. Following taxes of $48.98 million (2021: $56.61 million). Net profit totalled $17.19 million for the period, a decline of 90% compared to the $174.37 million reported last year. Net loss for the quarter totaled $8.45 million, compared to the $158.84 million profit reported last year. Net profit attributable to shareholders amounted to $50.96 million (2021: $202.36 million). While net profit attributable to shareholders for the quarter closed at $1.97 million (2021: $166.30 million).

Total comprehensive income (TCI) year to date amounted to $21.42 million (2021: $232.94 million) for the period ended June 30, 2022. TCI for the quarter booked $21.25 million versus an income of $217.28 million in 2021.

As such, earning per share (EPS) for the period amounted to $0.05 (2021: $0.20) while EPS for the quarter amounted to $0.002 (2021: $0.16). The trailing twelve months EPS amounted to $0.10. The number of shares used in our calculations amounted to 1,031,250,000 units. The stock traded at $4.96 as at August 15, 2022 with a corresponding P/E of 49.49 times.


Balance Sheet at a glance:- 

Total Assets increased by 11% to $12.73 billion as at June 30, 2022 from $11.47 billion a year earlier. The movement was mainly due to  ‘Due from reinsurers and co-insurers’ which closed the period at $3.09 billion (2021: $2.30 billion).

Shareholder’s Equity as at June 30, 2022 stood at $2.68 billion (2021: $2.84 billion) resulting in book value per share of $2.60 (2021: $2.75).



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