November 11, 2022
Key Insurance Company Limited (KEY) for the nine months ended September 30, 2022 reported a 17% increase in net premiums written to $1.16 billion (2021: $995.79 million). Notably there was a 21% increase in reinsurance ceded which closed the period at $526.26 million (2021: $434.57 million), while gross premium written for the period rose 18% to $1.69 billion (2021: $1.43 billion). For the quarter, net premium written went up 22% closing at $402.20 million (2021: $330.67 million).
Change in unearned premium reserve related to current year gross closed the period under review at $71.05 million (2021: $134.60 million). As a result, net premiums earned increased by 27% to $1.09 billion (2021: $861.19 million). While for the third quarter, net change in unearned premium reserve closed at $18.14 million (2021: $17.66 million), which led to a net premium earned of $384.06 million (2021: $313.01 million).
Claims expenses increased by 31% to $690.48 million (2021: $527.39 million). Likewise, administrative and other expenses increased by 19% to $429.43 million (2021: $360.13 million).
Commission on premium written closed at $152.72 million (2021: $115.19 million). Commission on reinsurance ceded rose 28% to $91.39 million (2021: $71.58 million).
Underwriting loss closed the period at $90.56 million (2021: loss of $69.94 million). For the quarter, underwriting loss amounted to $45.17 million (2021: $12.14 million).
Investment income increased 149% to $ 93.91 million (2021: $37.69 million), while other income fell 29% to $36.62 million (2021: 51.38 million).
Profit before taxation closed at $39.97 million (2021: $19.13 million). There was a tax charge of $12.50 million (2021: $6.38 million). Consequently, net profit for the period totalled $27.48 million (2021: $12.75 million). Net profit for the quarter closed at $15.23 million (2021: $10.94 million).
Total comprehensive loss closed at $12.19 million (2021: income of $20.26 million). For the quarter, comprehensive income amounted to $12.68 million (2021: $16.58 million).
Earnings per share (EPS) totalled $0.05 (2021: $0.03), while EPS for the quarter it remained at $0.03 year over year. The trailing twelve months EPS is $0.31. The number of shares used in the calculation was 559,323,101 units. KEY stock last traded on November 10, 2022 at $3.50 with a corresponding P/E ratio of 11.18 times.
Balance Sheet Highlights:
The company’s total assets fell 7% to $4.82 billion (2021: $5.19 billion). This was mainly due to a 37% increase in ‘Investment securities’ to $1.31 billion (2021: $952.78 million).
Total Shareholders’ Equity closed the period at $1.06 billion (2021: $947.25 million), thus resulting in a book value of $1.90 (2021: $1.69).
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