Key Insurance Company Limited (KEY)

Unaudited financials for the nine months ended September 30, 2024:

Key Insurance Company Limited (KEY) for the nine months ended September 30, 2024 reported a 15% increase in Insurance Revenue totaling $2.27 billion compared to $1.98 billion in the corresponding period last year. Insurance Revenue for the third quarter had a 18% increase to close at $813.84 million compared to $688.70 million for the comparable quarter of 2023.

Insurance service expenses amounted to $1.59 billion (2023: $1.35 billion), this represents an increase of 18% year over year. Consequently, net expenses from reinsurance contracts held decreased by 7% to $704.06 million compared to $659.93 million for the nine months ended September 30, 2023. The company booked net expenses from reinsurance contracts held of $240.00 million for the third quarter versus $204.66 million reported for the similar quarter of 2023.

Insurance Service Result decreased by 32% to close at $24.09 million (2023: $35.52 million), while Investment income increased by 24% from $141.34 million in 2023 to $174.75 million in the period under review. As a result, net insurance and investment result for the nine months ended September 30, 2024 amounted to $150.66 million, a 42% increase relative to $105.82 million reported in 2023.

Other income for the nine months ended September 30, 2024, amounted to $33.17 million, a 6% increase relative to $31.37 million reported in 2023. Other income for the third quarter amounted to $14.70 million (2023: $5.06 million).

Other operating expenses totaled $108.71 million, a 42% decrease from the corresponding period last year. (2023: $76.69 million) while Profit Before Taxation totaled $75.12 million a 24% increase from the corresponding period last year. (2023: $60.50 million)

Taxation for the nine months ended September 30, 2024, amounted to $24.95 million, a 24% increase relative to $20.10 million reported in 2023. Taxation for the third quarter amounted to $12.22 million (2023: $13.65 million). Net profit After Taxation for the nine months ended September 30, 2024 had a 24% increase to reach $50.17 million (2023: $40.40 million) . Total Comprehensive income for the nine months amounted to $50.17 million, a 24% increase from the $40.40 million reported in 2023. For the third quarter, Total Comprehensive income was $24.43 million (2023: $27.48 million).

Consequently, Earnings Per Share for the nine months amounted to $0.09 (2023: EPS: $0.07), while Earnings Per Share for the quarter totaled $0.04 (2023: EPS: $0.05). The twelve month trailing EPS was $0.09 and the number of shares used in these calculations was 559,323,101.

Notably, Key’s stock price closed the trading period on November 13, 2024 at a price of $2.45 with a corresponding P/E ratio of 26.50x.

Balance Sheet Highlights

The company’s assets totaled $4.34 billion (2023: $4.16 billion). The movement in total assets was mainly influenced by a 61% increase in ‘Investment securities’ amounting to $1.71 billion (2023: $1.07 billion).

Shareholder’s equity was $1.39 billion (2023: $1.31 billion), representing a book value per share of $2.48 (2023: $2.34).

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