May 14, 2019
IronRock Insurance Company Limited (ROC) for the year three months ended March, 2019 posted gross premium of $120.78 million relative $155.02 million; this represents a 22% decrease. According to ROC, “The reduction is due primarily to our reassessment of portfolio risk, which resulted in the non-renewal of several large accounts and secondly, to timing issues related to the processing of a large renewal transaction.”
Excess of loss premium amounted $11.87 million relative to $6.77 million for the first quarter of 2018.
Change in gross provision for unearned premiums amounted to $59.06 million compared to $99.46 million in 2018. As a result, gross insurance premium revenue amounted to $49.86 million relative to $48.79 million in 2017, a 2% increase year over year.
Net insurance premium revenue amounted to $47.72 million, relative to $38.44 million in 2018, following net unearned premium adjustment of $2.14 million (2018: $10.35 million). ROC noted the movement in net insurance premium was due to, “an increase in premium retention to 51% (Q12018: 33%) and a lower unearned premium adjustment.”
In addition, the company booked a net claims of $27.03 million relative to $17.30 in 2018 for first three months.
Commission expense totalled $17.53 million in contrast to 2018’s first quarter of $13.92 million, while commission declined grew by 5% from $15.27 million to total $14.50 million.
Operating expenses for the quarter decreased to $35.15 million relative to $37.61 million in the prior year. As such, underwriting loss closed at $17.49 million versus a loss of $15.13 million in 2018.
Investment income increased from $8.06 million to $8.45 million in 2018. Foreign exchange loss amounted to $711,000 compared to a FX gain of $2.41 million in 2018, while other income amounted to $14,000 to $2,000 (2018: $2,000).
As a result, loss for the quarter totalled $9.74 million compared to a loss of $4.66 million for the first three month of 2018.
Loss per share (LPS) for the quarter totalled $0.045 (2018: LPS: $0.022). the twelve month trailing LPS amounted to $0.01 The numbers of shares used in the calculations are 214,000,000.00 units. The stock price as at May 14, 2019 was $3.53.
Balance Sheet Highlights:
As March 31, 2019, assets totalled $1.01 billion (2017: $952.29 million) increasing by a 6%. Investments contributed to this increase in the asset base by $163.75 million or 49% to close at $496.80 million (2018: $333.05 million).
Shareholder’s equity closed at $527.16 million (2018: $508.17 million). This resulted in a book value per share of $2.46 (2018: $2.37).
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