Key Insurance Company Limited (KEY) for the six months ended June 30, 2017 reported a 46% growth in net premiums written from $285.15 million to $415.45 million as a result of a 36% increase in gross premium written which closed the period at $660.71 million (2016: $486.74 million). Reinsurance ceded for the period also increased for the six months to $245.26 million relative to $201.59 million in 2016. Net premiums written for the second quarter rose 34% to $216.28 million compared to $161.80 million booked in 2016.
Net premiums earned increased by 35% to $350.92 million from $260.87 million in 2016. This was as a result of a loss in net change in unearned premium reserve of $64.53 million relative to a loss of $24.28 million for the same period ended June 30, 2016.
There was an underwriting loss of $27.90 million as at June 30, 2016 relative to a loss of $58.95 million. This as claims expense decreased to $200.25 million for the six months ended June 30, 2017 compared to $803.58 million reported for the same period last year. Administrative and other expenses totaled $192.32 million for the six months, a 6% increase when compared to $180.62 million the prior year. This according to Key was due, “primarily from increases in staff and broker costs.” While commission on premium written climbed by 42% to $63.91 million from 2016’s $44.93 million.
Reinsurance recoveries decreased significantly to $19.19 million for the period (2016: $671.76 million), while commission on reinsurance ceded rose by 21% to total $45.52 million relative $37.55 million last year.
Investment income totaled $24.24 million a 20% improvement relative to $20.15 million last year’s corresponding period. Gains on revaluation of investment properties was nil compared to $10 million last year, while other income fell to $11.71 million from $20.94 million in 2015. KEY highlighted the performance of other income was attributed to, “the $14 million reduction in foreign exchange gains arising from the relative stability of the Jamaican dollar denoted by a few months of appreciation in value.”
Profit before taxation was $8.05 million as at June 30, 2017 compared to a loss of $7.86 million last year. Tax charges for the period totaled 30,000, and as such net profit for period totaled $8.02 million relative to a loss of $7.89 million as at June 30, 2016. Net profit for the quarter closed at $10.77 million versus a loss of $10.88 million.
Earnings per share (EPS) for the six month totaled $0.02 relative to a loss per share of $0.02 in 2016, while EPS for the quarter totaled $0.03 compared to a loss per share of $0.03 for the 2016 period. The trailing twelve month loss per share is $0.04. The number of shares used in the calculation was 368,460,863 units.
Balance Sheet Highlights:
The company’s total assets amounted to $2.44 billion as at June 30, 2017 down from $2.72 million as at the corresponding period in 2016. This represents a 10% decrease year over year. This was mainly as a result of a decrease in “due from reinsurers” from $829.83 million as at June 30, 2016 to $362.20 million as at the corresponding period in 2017. Cash and deposits also contributed to the decline, moving from $652.20 million to $598.11 million as at June 30, 2017.
Total Stockholders’ Equity as at June 30, 2017 was $1.08 billion (2016: $996.23 million), resulting in a book value of $2.92 (2016: $2.70).
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