August 15, 2024

General Accident Insurance Co. Ja. Ltd. (GENAC)

Unaudited financials for the six months ended June 30, 2024:

General Accident Insurance Co. Ja. Ltd. (GENAC) for the six months ended June 30, 2024, reported a 15% increase in insurance revenue totaling $5.37 billion compared to $4.68 billion in the corresponding period last year. Insurance revenue for the second quarter had a 14% increase to close at $2.79 billion compared to $2.45 billion for the comparable quarter of 2023.

Insurance Service Expenses amounted to $3.75 billion (2023: $3.03 billion), this represents an increase of 23% year over year. Consequently, Net Expenses from Reinsurance Contracts held increased by 14% to $1.45 billion compared to $1.28 billion for the six months ended June 30, 2023. The company booked Net Expenses from Reinsurance Contracts held of $613.88 million for the second quarter versus $447.88 million reported for the similar quarter of 2023.

Insurance service results decreased by 53% to close at $174.65 million (2023: $368.66 million), while Net Changes in Unearned Premiums increased by 25% from $131.68 million in 2023 to $164.37 million in the period under review. As a result, Net Insurance and Investment Result for the six months ended June 30, 2024, amounted to $339.02 million, a 32% decrease relative to $500.34 million reported in 2023.

Other Operating Income for the six months ended June 30, 2024, amounted to $153.37 million, a 354% increase relative to $33.79 million reported in 2023. Other Income for the second quarter amounted to $122.42 million. Other Operating Expenses totalled $281.87 million, a 23% increase from the corresponding period last year. (2023: $228.54 million).

Profit before taxation for the six months ended June 30, 2024, amounted to $210.52 million, a 31% decrease relative to $305.59 million reported in 2023. Profit before taxation for the second quarter amounted to $137.01 million (2023: $248.84 million).

Taxation for the six months ended June 30, 2024, had a 13% decrease to reach $51.41 million (2023: $59.26 million). Net Profit for the six months amounted to $159.11 million, a 35% decrease from the $246.33 million reported in 2023. For the second quarter, Net Profit for the second quarter amounted to $103.58 million (2023: $192.83 million).

Unrealised losses on FVOCI investments for the six months ended June 30, 2024, had a 700% decrease to reach $36.56 million whilst for 2023 Unrealised gains on FVOIC investments amounted to $6.09 million. For the second quarter, Unrealised losses on FVOCI investments equated to $144.48 million (2023: $60.06 million).

Consequently, Earnings Per Share for the six months amounted to $0.15 (2023: LPS: $0.22), while Earnings Per Share for the quarter totaled $0.10 (2023: EPS: $0.16). The twelve-month trailing EPS was $0.45, and the number of shares used in these calculations was 1,031,250,000.

Notably, GENAC’s stock price closed the trading period on August 14, 2024, at a price of $6.41 with a corresponding P/E ratio of 14.18x.

Balance Sheet Highlights

The company’s assets totalled $12.04 billion (2023: $9.42 billion). This increase in total assets was attributable to ‘Other Receivables’ which amounted to $2.11 billion for the period under review (2023: $1.46 billion). Additionally, ‘Cash and Short-Term Investments’ also contributed to the increase equating to $1.47 billion for the period under review (2023: $841.70 million).

Shareholder’s equity was $3.76 billion (2023: $3.12 billion), representing a book value per share of $3.64 (2023: $3.02).

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