March 3, 2022
Key Insurance Company Limited (KEY) for the year ended December 31, 2021 reported net premiums written of $1.32 billion relative to net premiums written of $928.27 million recorded for the same period in 2020. This performance was due to a 35% increase in Gross Premium Written which closed the period at $1.91 billion (2020: $1.42 billion). Notably, Reinsurance Ceded for the year went up 22% to $599.10 million relative to $489.72 million for the year ended December 31, 2020. For the quarter, net premium written improved to $320.07 million, 12% up from the net premiums written of $285.43 million reported for the same quarter of 2020.
Change in earned premium reserve closed the period under review at $164.87 million, relative to an earned premium reserve of $108.18 million booked last year. As a result, net premiums earned improved to $1.15 billion relative to $820.09 million in 2020.
Claims expenses amounted to $589.77 million (2020: $563.19 million), while administrative and other expenses increased by 3% to $502.89 million (2020: $488.99 million) for the year end. Also, commission expense amounted to $160.40 million, relative to $171.33 million booked in 2020.
Commission on premium written closed at $96.61 million compared to $159.93 million for the same period of 2020. There was a surplus in unexpired risk reserves for the year which amounted to $84.59 million relative to a surplus of $31.71 million the prior year and amortization of underwriting assets stood at $323.14 million as at December 31, 2020 (2021: nil).
As a result, underwriting profit closed the year at $79.13 million compared a loss of $534.92 million experienced in 2020. As for the quarter, the Company booked an underwriting profit of $149.07 million, 336% of $34.20 million documented for 2020.
Investment income for the year totaled $59.74 million, 117% more than the $27.49 million recorded for 2020, while other income increase 215% to $98.76 million from $31.35 million booked in 2020.
There were no gain on revaluation of investment properties for the period under review. However, gain on revaluation of investment properties closed at $26.58 million for 2020.
Consequently, profit before taxation closed at $237.64 million for the year, relative to a loss of $449.50 million in 2020. There was a tax charge of $77.25 million for the year, compared to a tax credit of $149.83 million in 2020. As such, net profit for the period totaled $160.39 million relative to a loss $299.67 million for the period ended December 31, 2020. Net profit for the quarter however, closed at $147.64 million versus a profit of $58.72 million for the prior comparative quarter in 2020.
Total comprehensive income for the year amounted to $147.72 million (2020 Total comprehensive loss: $310.22 million), while comprehensive income for the quarter amounted to $127.47 million (2020: $71.97 million).
Earnings per share (EPS) for the twelve months totaled $0.29 relative to a loss per share of $0.54 in 2020, while EPS for the quarter totaled $0.26 compared to an EPS of $0.10 in 2020. The number of shares used in the calculation was 559,323,101 units. KEY stock last traded on March 3, 2022 at $4.65 with a corresponding P/E of 16.22 times.
Balance Sheet Highlights:
The Company’s total assets amounted to $4.48 billion as at December 31, 2021, 54% above the $2.91 billion as at the corresponding period in 2020. This was mainly as a result of an increase in ‘Cash and deposits’ to $1.47 billion (2020: $745.18 million) and ‘Due from reinsurers’ amounting to $1.06 billion (2020: $363.95 million).
Total Shareholders’ Equity as at December 31, 2021 closed at $1.07 billion (2020: $258.98 million), thus resulting in a book value of $1.92 (2020: $0.46).
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