May 09, 2022
IronRock Insurance Company Limited (ROC), for the three months ended March 31, 2022, recorded gross premiums of $260.99 million relative $198.65 million booked twelve months earlier; a 31% increase when compared against Q1 of 2021.
Of the premiums written in Q1 FY22, $212.08 million was proportionally reinsured. In Q1 of 2021, IronRock had re-insured $142.38 million of the Premiums they had written.
Net Claims incurred were $18.58 million (2021: $18.51 million). Commission expenses totaled $27.68 million, 12% more than 2021’s $24.76 million, while commission earned grew by 38% to $38.52 million in Q1 2022, to $27.98 million for Q1 last year.
Operating expenses, for the three months ended March 31, 2022, increased to $52.42 million relative to $44.13 million in the prior year. Owing to the increases in expenses, IronRock experienced an underwriting loss for the quarter of $22.76 million versus a loss of $10.93 million in 2021.
‘Other Income’ inclusive of investment income & foreign exchange gains declined marginally to $14.21 million from $15.39 million booked twelve months earlier. Investment income increased from $9.67 million in Q1 of 2021 to $12.56 million in 2022. Additionally, IronRock experienced foreign exchange gains amounting to $1.65 million compared to a FX gain of $5.72 million in 2021.
IronRock’s net loss for the first quarter of 2022 stood at $8.55 million. In the first quarter of 2021, the company posted a profit of $4.46 million. Fortunately, the company reported no taxes this quarter.
After posting a Net Loss in the first quarter of 2022, IronRock is currently experiencing a loss per share of $0.04 (2020: EPS: $0.02). The trailing twelve months EPS amounted to $0.19. The numbers of shares used in the calculations are 214,000,000 units. The stock price as at May 9, 2022 was $3.50 with a corresponding P/E of 18.40x.
Balance Sheet Highlights:
As March 31, 2022, assets totaled $1.68 billion (2021: $1.45 billion) increasing by 18% year over year. This increase is mainly due to growth in Reinsurance Assets that increased by $104.06 million to $490.74 million and Receivables which grew by $80.46 million to $262.27 million in 2022.
Shareholder’s equity closed at $614.39 million (2021: $572.63 million). This resulted in a book value per share of $2.87 (2021: $2.67).
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