Key Insurance Company Limited (KEY)

Audited financials for the twelve months ended December 31, 2024:

Key Insurance Company Limited (Key) for the twelve months ended December 31, 2024, reported a 22% increase in Insurance Revenue totalling $3.06 billion compared to $2.50 billion in the corresponding period last year. Insurance Revenue for the fourth quarter had a 50% increase to close at $786.61 million compared to $524.64 million for the comparable quarter of 2023.

Insurance service expenses amounted to $2.21 billion (2023: $1.79 billion), this represents an increase of 24% year over year. Consequently, net expenses from reinsurance contracts held increased by 17% to $862.67 million compared to $738.27 million for the twelve months ended December 31, 2023. The company booked net expenses from reinsurance contracts held of $158.62 million for the fourth quarter versus $78.34 million reported for the similar quarter of 2023.

Insurance Service Result decreased by 12% to close at $19.03 million (2023: $21.53 million), while Investment income increased by 19% from $192.41 million to $229.31 million in the period under review. Finance expense from insurance contracts held amounted to $77.82 million (2023: $40.76 million); Finance income from reinsurance contracts held amounted to $67.16 million (2023: $15.78 million). As a result, net insurance and investment result for the twelve months ended December 31, 2024, amounted to $199.63 million, a 37% increase relative to $145.90 million reported in 2023.

Other income for the twelve months ended December 31, 2024, amounted to $43.75 million, a 5% decrease relative to $45.94 million reported in 2023. Other income for the fourth quarter amounted to $10.58 million (2023: $14.57 million).

Notably, Other operating expenses totalled $140.81 million, a 23% increase from the corresponding period last year (2023: $114.58 million). Consequently, Profit before Taxation totalled $102.57 million, a 33% increase from the corresponding period last year. (2023: $77.26 million)

The tax charge incurred for the twelve months ended December 31, 2024, amounted to $35.62 million, a 1% increase relative to $35.32 million reported in 2023. The tax charge incurred for the fourth quarter amounted to $10.67 million (2023: $15.22 million).

Net profit for the twelve months ended December 31, 2024 had a 60% increase to reach $66.95 million (2023: $41.94 million). Net profit attributable to shareholders amounted to $49.05 million compared to $30.73 million in the prior period.

Revaluation gain on property, plant and equipment, net of taxes amounted to $24.58 million (2023: Revaluation loss on PP&E of $334,000). Hence, Total Comprehensive income for the twelve months amounted to $91.53 million, a 120% increase from the $41.61 million reported in 2023. For the fourth quarter, Total Comprehensive income was $41.36 million (2023: $1.21 million).

Consequently, Earnings Per Share for the twelve months amounted to $0.12 (2023: EPS: $0.07), while Earnings Per Share for the quarter totalled $0.03 (2023: EPS: $0.003). The number of shares used in these calculations was 559,323,101.

Notably, Key’s stock price closed the trading period on February 28, 2025 at a price of $2.33 with a corresponding P/E ratio of 19.47x.

Balance Sheet Highlights

The company’s assets totalled $4.61 billion (2023: $4.10 billion). The movement in total assets was mainly influenced by a 16% increase in ‘Investment securities’ amounting to $2.18 billion (2023: $1.88 billion) and a 43% increase in Plant, Property and Equipment amounting to $373.23 million (2023: $261.53 million). Additionally, reinsurance contract assets increased by $245.90 million to reach $255.60 million (2023: $9.70 million).

Shareholder’s equity was $1.43 billion (2023: $1.34 billion), representing a book value per share of $2.55 (2023: $2.39).

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