GENAC reports year end net profit of $149.24 million

June 28, 2022

General Accident Insurance Company Limited (GENAC), for the year ended December 31, 2021 reported gross premium written of $13.96 billion, 16% higher than the $12.04 billion reported for 2020. Reinsurance ceded also rose by 16% to close at $10.49 billion relative to $9.07 billion booked in 2020. Excess of loss reinsurance trended up by 30% to $216.99 million (2020: $167.31 million).

As a result, net premium written increased by 16% from $2.81 billion last year to $3.25 billion for the year ended December 31, 2021. Net premium written for the fourth quarter amounted to $906.63 million relative to $822.05 million booked for the corresponding period in 2020.

Net changes in unearned premiums totalled $221.21 million, 211% higher than the $71.05 million recorded last year. Consequently, net premiums earned, for the year ended December 31, 2021, grew by 11% to a total of $3.03 billion compared to $2.74 billion for the prior year. For the quarter, net premium earned totalled $802.80 million compared to $710.01 million booked for the similar quarter of 2020.

Commission income rose by 16%, year over year, from $771.22 million in 2020 to $892.86 million in 2021, while commission expenses increased by 10% from $465.63 million to $511.03 million for the period under review.

Claims expenses saw a decline of 4%, closing the period at $1.75 billion (2020: $1.82 billion), while management expenses climbed by 29% to total $1.58 billion compared to 2020’s total of $1.23 billion.

Underwriting profit for the year totalled $80.32 million, this compares to a profit of $1.45 million in 2020. The company also made an underwriting loss of $264.36 million relative to a profit of $58.36 million within the fourth quarter.

Investment income closed at $226.53 million, a decrease of 23% when compared with last year’s $293.89 million, while other income totalled $124.59 million, relative to $95.59 million in 2020. Other operating expenses grew by 41% to $164.66 million relative to $116.74 million in 2020. The Company also booked finance charges of $7.08 million for the year end (2020: $14.64 million).

Profit before taxation amounted to $259.70 million (2020: $259.54 million). Following taxes of $110.46 million (2020: $65.72 million), net profit totalled $149.24 million for the year ended December 31, 2021 a 23% decline when compared to the $193.81 million reported last year. Net loss for the quarter was $201.72 million relative to the profit of $160.33 million booked in the corresponding quarter in 2020.

Total comprehensive income amounted to $143.80 million (2020: $255.54 million) for the year ended December 31, 2021. For the fourth quarter, total comprehensive loss amounted to $289.77 million in comparison to the income of $163.31 million in 2020.

As such, earning per share for the period amounted to $0.25 (2020: $0.24), while LPS for the quarter amounted to $0.14 compared to an EPS of $0.09 in 2020. The number of shares used in our calculations amounted to 1,031,250,000 units. The stock traded at $5.78 as at June 27, 2022 with a corresponding P/E ratio of 23.40 times.

Balance Sheet at a glance:

Total assets increased by 12% to $12.50 billion as at December 31, 2021 from $11.17 billion a year earlier. ‘Cash & Short-Term Investments’ and ‘Due from Reinsurers and Co-Insurers’ contributed the most to the growth in assets with a 91% increase to $1.44 billion (2020: $756.55 million) and a 43% increase to $3.28 billion (2020: $2.30 billion), respectively.

Shareholder’s equity as at December 31, 2021 stood at $2.63 billion (2020: $2.58 billion) resulting in book value per share of $2.55 (2020: $2.50).



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