February 14, 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 $12.05 billion reported for 2020. Reinsurance ceded also rose by 16% to close at $10.48 billion relative to $9.07 billion booked in 2020. Excess of loss reinsurance trended up by 25% to $209.56 million (2020: $167.31 million).
As a result, net premium written increased by 16% from $2.81 billion last year to $3.27 billion for the year ended December 31, 2021. Net premium written for the fourth quarter amounted to $921.57 million relative to $822.05 million booked for the corresponding period in 2020.
Net changes in unearned premiums totalled $184.59 million, 160% higher than the $71.05 million recorded last year. Consequently, net premiums earned, for the year ended December 31, 2021, grew by 13% to a total of $3.08 billion compared to $2.74 billion for the prior year. For the quarter, net premium earned totalled $854.36 million compared to $710.01 million booked for the similar quarter of 2020.
Commission income rose by 22%, year over year, from $771.22 million in 2020 to $938.06 million in 2020, while commission expenses increased by 14% from $465.63 million to $531.17 million for the period under review.
Net changes in commission amounted to $5.83 million (2020: nil). Claims expenses saw a decline of 7%, closing the period at $1.69 billion (2020: $1.82 billion), while management expenses climbed by 24% to total $1.52 billion compared to 2020’s total of $1.23 billion.
Underwriting profit for the year totalled $272.71 million, this compares to a profit of $1.45 million in 2020. The company also made an underwriting loss of $71.97 million relative to a profit of $58.36 million within the fourth quarter. GENAC noted, “The Jamaican portfolio produced a commendable underwriting profit of $453.30 million, compared to the prior period’s underwriting profit of $174.86 million, largely driven by an improvement in the loss ratio.”
Investment income closed at $221.53 million, a decrease of 25% when compared with last year’s $293.89 million, while other income totalled $113.18 million, relative to $95.59 million in 2020. Other operating expenses grew by 35% to $157.27 million relative to $116.74 million in 2020. The Company also booked finance charges of $7.24 million for the year end (2020: $14.64 million).
Profit before taxation amounted to $442.90 million (2020: $259.54 million). Following taxes of $97.82 million (2020: $65.72 million), net profit totalled $345.08 million for the year ended December 31, 2021 a 78% increase when compared to the $193.81 million reported last year. Net loss for the quarter was $5.87 million relative to the profit of $160.33 million booked in the corresponding quarter in 2020.
Total comprehensive income amounted to $361.09 million (2020: $255.54 million) for the year ended December 31, 2021. For the fourth quarter, total comprehensive loss amounted to $72.47 million in comparison to the income of $163.31 million in 2020.
As such, earning per share for the period amounted to $0.36 (2020: $0.27), while LPS for the quarter amounted to $0.05 compared to $0.16 in 2020. The number of shares used in our calculations amounted to 1,031,250,000 units. The stock traded at $7.04 as at February 14, 2022 with a corresponding P/E ratio of 19.46 times.
Balance Sheet at a glance:-
Total assets increased by 9% to $12.14 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 143% increase to $1.84 billion (2020: $756.55 million) and a 29% increase to $2.98 billion (2020: $2.30 billion), respectively.
Shareholder’s equity as at December 31, 2021 stood at $2.79 billion (2020: $2.58 billion) resulting in book value per share of $2.70 (2020: $2.50).
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