March 2, 2023

Key Insurance Company Limited (KEY) for the year ended December 31, 2022 reported net premiums written of $1.54 billion relative to net premiums written of $1.32 billion recorded for the same period in 2021. This performance was due to a 16% increase in Gross Premium Written which closed the period at $2.22 billion (2021: $1.91 billion). Notably, Reinsurance Ceded for the year went up 14% to $681.85 million relative to $599.10 million for the year ended December 31, 2021. For the quarter, net premium written improved to $373.96 million, 17% up from the net premiums written of $320.07 million reported for the same quarter of 2021.

Change in unearned premium reserve closed the period under review at $74.22 million, relative to an unearned premium reserve of $164.87 million booked last year. As a result, net premiums earned improved to $1.46 billion relative to $1.15 billion in 2021.

Claims expenses amounted to $986.66 million (2021: $589.77 million). For the quarter claims expenses increased from $62.39 million in 2021 to $296.18 million in 2022.

Commission on premium written closed at $121.94 million compared to $96.61 million for the same period of 2021. There was a decrease in unexpired risk reserves for the year which amounted to $20.47 million relative to a surplus of $84.59 million the prior.

As a result, underwriting loss closed the year at $133.87 million compared a profit of $79.13 million experienced in 2021. As for the quarter, the Company booked an underwriting loss of $43.32 million (2021: profit of $149.07 million).

Investment income for the year totaled $138.33 million, 132% more than the $59.74 million recorded for 2021, while other income decreased 32% to $67.58 million from $98.76 million booked in 2021.

Consequently, profit before taxation closed at $72.04 million for the year, relative to a profit of $237.64 million in 2021. There was a tax charge of $17.74 million for the year, compared to a tax credit of $77.25 million in 2021. As such, net profit for the period totaled $54.30 million relative to a profit of $160.39 million for the period ended December 31, 2021. Net profit for the quarter however, closed at $26.82 million versus a profit of $147.64 million for the prior comparative quarter in 2021.

Total comprehensive income for the year amounted to $47.59 million (2021: Total comprehensive income of $147.72 million), while comprehensive income for the quarter amounted to $59.78 million (2021: $127.47 million).

Earnings per share (EPS) for the twelve months totaled $0.10 relative to a profit per share of $0.29 in 2021, while EPS for the quarter totaled $0.05 compared to an EPS of $0.26 in 2021. The number of shares used in the calculation was 559,323,101 units. KEY stock last traded on March 1, 2022 at $2.89 with a corresponding P/E of 29.77 times.

Balance Sheet Highlights:

The Company’s total assets amounted to $5.09 billion as at December 31, 2022, 14% above the $4.48 billion as at the corresponding period in 2021. This was mainly a result of an increase in ‘Investment securities’ to $1.58 billion (2021: $780.05 million) and ‘Due from reinsurers’ amounting to $1.36 billion (2021: $1.06 billion).

Total Shareholders’ Equity as at December 31, 2021 closed at $1.12 billion (2021: $1.07 billion), thus resulting in a book value of $2.01 (2021: $1.92).

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