August 10, 2023
Key Insurance Company Limited (KEY) for the six months ended June 30, 2023, reported a 23% increase in Insurance Revenue totaling $1.29 billion compared to $1.05 billion in the corresponding period last year. Insurance Revenue for the second quarter had a 24% increase to close at $704.75 million compared to $566.59 million for the comparable quarter of 2022.
Insurance service expenses amounted to $881.24 million (2022: $780.14 million), this represents an increase of 13% year over year. Consequently, net expenses from reinsurance contracts held increased by 69% to $455.27 million compared to $269.49 million for the six months ended June 30, 2022. The company booked net expenses from reinsurance contracts held of $280.23 million for the second quarter versus $171.34 million reported for the similar quarter of 2022.
Insurance Service Result increased to close at $46.75 million (2022: income of $1.31 million), while net investment income increased by 146% from $47.93 million in 2022 to $117.78 million in the period under review. As a result, net insurance and investment result for the six months ended June 30, 2023, amounted to $71.03 million, a 44% increase relative to $49.25 million reported in 2022.
There was no other income for the six months ended June 30, 2023 relative to $15.14 million reported in 2022. There was no other income for the second quarter of 2023 (2022: $15.14 million).
Other operating expenses totalled $51.66 million, an 11% increase from the corresponding period last year. (2022: $46.69 million) while Profit Before Taxation totalled $19.37 million, a 10% increase from the corresponding period last year (2022: $17.69 million)
Taxation for the six months ended June 30, 2023, amounted to $6.46 million, a 19% increase relative to $5.44 million reported in 2022. Taxation for the second quarter amounted to $4.69 million (2022: $4.30 million).
Net profit after taxation for the six months ended June 30, 2023, had a 5% increase to reach $12.91 million (2022: $12.25 million). For the quarter, net profit after taxation decreased by 6% to reach $9.38 million in comparison to the $9.96 million recorded in 2022.
Total comprehensive income for the six months amounted to $12.91 million from the total comprehensive loss of $24.87 million reported in 2022. For the second quarter, total comprehensive income was $9.38 million (2022: total comprehensive loss of $20.20 million).
Consequently, Earnings Per Share for the six months amounted to $0.023 (2022: LPS of $0.022), while Earnings Per Share for the quarter totaled $0.017 (2022: LPS of $0.018). The twelve-month trailing EPS was $0.10, and the number of shares used in these calculations was 559,323,101.
Notably, Key’s stock price closed the trading period on August 9, 2023, at a price of $2.89 with a corresponding P/E ratio of 29.41x.
Balance Sheet Highlights
The company’s assets totalled $3.99 billion (2022: $3.54 billion).
Shareholder’s equity was $1.28 billion (2022: $1.21 billion), representing a book value per share of $2.29 (2022: $2.16).
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