May 27, 2022
General Accident Insurance Company Limited (GENAC) for the three months ended March 31, 2022, reported gross premium written of $3.67 billion, 11% over the $3.30 billion reported in 2021. Reinsurance ceded rose 13% to close at $2.74 billion relative to $2.42 billion booked in 2021. Excess of loss reinsurance trended upwards by 16% to $57.04 million (2021: $49.12 million).
Despite this, net premium written increased by 6% from $830.70 million for the first quarter of 2021 to $877.19 million for the three months ended March 31, 2022.
Net changes in unearned premiums totalled $68.97 million, 38% less than the $111.77 million recorded last year. Consequently, net premiums earned grew by 12% year over year to a total of $808.22 million compared to $718.93 million for the prior year.
Commission income rose 11%, year over year, from $210.80 million in 2021 to $234.55 million in for the three months ended March 31, 2022, while commission expenses grew 3% from $135.79 million in 2021 to $139.23 million for the first quarter of 2022.
Claims expenses increased by 6% closing the quarter at $481.68 million (2021: $454.12 million), while management expenses climbed 28% to total $400.46 million compared to 2021’s total of $313.53 million.
Underwriting profit for the quarter amounted to $21.41 million, this compares to a profit of $26.29 million booked for the first three months of 2021.
Investment income closed at $44.03 million, a 10% decrease when compared with last year’s corresponding quarter of $48.86 million. Other income for the quarter was $5.86 million, relative to other loss of $1.53 million in 2021. Other operating expenses grew by 14% to $41.44 million relative to $36.31 million in 2021.
Profit before taxation amounted to $27.61 million (2021: $34.61 million). Following taxes of $1.96 million (2021: $19.09 million), net profit totalled $25.64 million for the quarter, a 65% increase when compared to the $15.52 million reported for the previous year’s comparable quarter.
Net profit attributable to shareholders amounted to $36.39 million, which was the same figure reported for the corresponding period last year.
Total comprehensive income for the quarter amounted to $25.78 million relative to a total comprehensive income of $15.66 million for the quarter ended March 31, 2021.
As such, earning per share for the period amounted to $0.025 (2021: $0.015). The trailing twelve months EPS amounted to $0.46, the number of shares used in our calculations amounted to 1,031,250,000 units. The stock traded at $5.90 as at May 26, 2022 with a corresponding P/E of 17.13 times.
Management noted that, “As of March 2022, General Accident remains in compliance with the capital adequacy and liquidity metrics prescribed by the Financial Services Commission, in Jamaica, Barbados and Trinidad.”
Balance Sheet at a glance:-
Total Assets increased by 9% to $13.20 billion as at March 31, 2022 from $12.11 billion a year earlier. ‘Due from Reinsurers and Co-insurers’ contributed the most to the growth in assets with a 45% increase to $3.45 billion relative to $2.38 billion in 2021 while ‘Investment Securities’ was the main contributor in reducing assets with a 19% decline year over year to close at $3.40 billion (2021: $4.18 billion).
Shareholder’s Equity as at March 31, 2022 stood at $2.70 billion (2021: $2.69 billion) resulting in book value per share of $2.62 (2021: $2.61).
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