Date: April 1, 2019

IronRock Insurance Company Limited (ROC), audited results for the year ended December 31, 2018 posted gross premium of $571.84 million relative $424.46 million; this represents a 35% increase.

Change in gross provision for unearned premiums amounted to $42.11 million compared to $142.65 million in 2017. As a result, gross insurance premium revenue amounted to $529.73 million relative to $281.81 million in 2017, an 88% increase year over year.

Net insurance premium revenue amounted to $184.22 million, relative to $78.01 million in 2017, following net unearned premium adjustment of $356.84 million (2017: $296.06 million).

In addition, the company booked a net claims of $72.39 million relative to $46.83 in 2017 for the year.

Commission expense totalled $60.02 million in contrast to 2017’s $31.46 million, while commission income grew by 97% from $33.63 million to total $66.31 million.

Operating expenses for the year increased to $160.10 million relative to $134.74 million in the prior year. As such, underwriting loss improved over the year closing at $41.98 million versus a loss of $101.38 million in 2017.

Investment income increased from $30.74 million to $32.22 million in 2018. Profit on sale of investment amounted to $3.16 million compared to $24.09 million in 2017. Foreign exchange gain amounted to $8.37 million compared to a FX loss of $1.31 million in 2017, while other income soared to $1 million (2017: nil).

As a result, profit for the year totalled $2.77 million compared to a loss of $47.86 million in 2017 an improvement year over year.

Earnings per share for the year totalled $0.013 (2017: LPS: $0.224). The numbers of shares used in the calculations are 214,000,000.00 units. The stock price as at March 29, 2019 was $3.99.

Balance Sheet Highlights:

As December 31, 2018, assets totalled $1.01 billion (2017: $937.77 million) increasing by a 8%. Investments contributed to this increase in the asset base by $153.98 million or 55% to close at $434.59 million (2017: $280.61 million).

Shareholder’s equity closed at $514.71 million (2017: $512.34 million). This resulted in a book value per share of $2.41 (2017: $2.39).

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.