July 26, 2022
Key Insurance Company Limited (KEY), for the six months ended June 30, 2022, reported a 14% increase in net premiums written from $665.12 million in 2021 to $759.54 million for the period under review. This performance stemmed from a 21% increase in gross premium written, which closed the period at $1.10 billion (2021: $915.51 million). Reinsurance ceded for the period rose to $344.32 million relative to $250.39 million in 2021. Net premiums written for the second quarter increased 15% to $397.40 million compared to $345.61 million booked last year.
Net premiums earned rose by 29% to $706.62 million from $548.19 million in 2021. This was as a result of a change in unearned premium of $52.91 million relative to a change in unearned premium of $116.94 million for the same period ended June 30, 2021.
The Company booked an underwriting loss of $45.38 million as at June 30, 2022 relative to a loss of $57.80 million. This was attributable to an increase in claims expense to $424.12 million for the six months ended June 30, 2022 compared to $338.20 million reported for the same period last year. Administrative and other expenses totalled $288.51 million for the six months, a 20% increase when compared to $239.81 million the prior year.
Commission on premium written increased by 37% to total $99.48 million (2021: $72.81 million) for the six months, while commission on reinsurance ceded closed the period at $60.11 million (2021: $44.83 million), a 34% increase year over year.
Underwriting loss for the second quarter amounted $29.51 million, relative to a loss of $20.68 million reported twelve months earlier.
Investment income totaled $47.93 million an 111% increase relative to $22.76 million reported for last year’s corresponding period. While other income fell 60% to $15.14 million from $37.76 million in 2021.
Profit before taxation amounted to $17.69 million as at June 30, 2022 compared to a profit of $2.72 million last year.
There was a taxation charge for the period of $5.44 million (2021: $906,000)
As such net profit for the period totalled $12.25 million relative to a profit of $1.81 million as at June 30, 2021. Net profit for the quarter closed at $9.96 million versus profit of $1.04 million in 2021. KEY noted that “the improved results for the period are attributable to the performance of both the insurance and investment segment of KEY’s business.”
Total comprehensive loss amounted to $24.87 million, a sharp decline from an income of $3.68 million for the six months ended June 2021. For the quarter, total comprehensive loss amounted to $20.20 million, relative to an income of $7.35 million booked in 2021.
Earnings per share (EPS) for the six months totalled $0.022 relative to EPS of $0.003 in 2021, while EPS for the quarter totalled $0.018 compared to EPS of $0.002 for the 2021 period. The trailing twelve months earnings per share is $0.31. The number of shares used in the calculation was 559,323,101 units. KEY stock last traded on July 25, 2022 at $3.85 with a corresponding P/E of 12.61 times.
Balance Sheet Highlights:
The company’s total assets amounted to $4.61 billion as at June 30, 2022 down from $4.88 billion as at the corresponding period in 2021 which represents a 6% decrease year over year. This was mainly as a result of a decline in “Due from reinsurers” which moved from $1.64 billion as at June 30, 2021 to $1.08 billion as at the corresponding period in 2022.
Total Stockholders’ Equity as at June 30, 2022 was $1.05 billion (2021: $930.67 million), resulting in a book value of $1.88 (2021: $1.66).
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