ROC reports 12% increase in year end net profit

April 29, 2022

IronRock Insurance Company Limited (ROC), for the year ended December 31, 2021 posted gross premiums of $881.21 million relative $836.97 million; representing a 5% increase.

Change in gross provision for unearned premiums amounted to $43.11 million compared to $29.91 million in 2020. Resulting in gross insurance premiums revenue of $838.10 million (2020: $807.06 million). While, for the quarter, gross insurance premiums revenue closed at $710.35 million (2020: $65.46 million).

Written premiums ceded to reinsurers amounted to $686.76 million relative to $647.27 million in 2020, a 6% increase year over year and Reinsurers’ share of change in provision for unearned premiums amounted to $38.94 million (2020: $33.26 million). As a result, net insurance premium revenue amounted to $190.28 million (2020: $193.05 million). For the quarter, net insurance premium revenue totalled $48.07 million (2020: $48.42 million).

Claims expenses incurred closed the twelve months period at $189.60 million (2020: $262.05 million), while  Reinsurers’ share of claims and benefits incurred amounted to $98.53 million (2020: $172.49 million). As a result, net insurance claims totaled $91.07 million for the year ended December 31, 2021 (2020: $89.56 million).

Commission expenses incurred totaled $101.63 million in contrast to 2020’s $93.59 million, while commission earned grew by 16% from $148.70 million in 2020 to total $173.19 million for the year ended December 31, 2021.

ROC reported a profit before operating expenses of $170.76 million, 8% up from $158.60 million booked December 2020.

Operating expenses, for the year ended December 31, 2021, increased to $188.78 million relative to $186.07 million in the prior year. As such, underwriting loss over the year closed at $18.02 million versus a loss of $27.46 million in 2020. For the quarter, underwriting profit closed at $41.16 million (2020: $37.54 million).

Investment income increased from $40.21 million in 2020 to $43.87 million for 2021. Gain on sale of investment amounted to $9.85 million compared to $8.11 million in 2020. Foreign exchange gain amounted to 25.13 million compared to a FX gain of $11.82 million in 2020.

As a result, profit before taxation totaled $60.84 million compared to a profit before taxation of $32.83 million in 2020. In the quarter, profit before taxation amounted to $69.69 million (2020: $46.80 million).

Tax of $7.13 million was recorded (2020: Tax credit of $15.12 million), resulting in net profit for the period under review of $53.71 million (2020: $47.95 million). Net profit for the quarter closed at $62.56 million (2020: $61.92 million).

Total comprehensive income for the year totalled $52.54 million compared to $17.72 million booked twelve months earlier.

Earnings per share for the year totaled $0.25 (2020: EPS: $0.22). For the quarter, EPS amounted to $0.292 (2020: $0.289). The numbers of shares used in the calculations are 214,000,000 units. The stock price as at April 28, 2022 was $3.29 with a corresponding P/E of 13.11 times.

Balance Sheet Highlights:

As December 31, 2021, assets totaled $1.55 billion (2020: $1.40 billion) increasing by 11% year over year. This increase is mainly due to Investments that increased by $69.54 million to $634.85 million from $565.31 million. The increase also included ‘Reinsurance Assets’(increased by $45.79 million), ‘Short- term Investments’(increased by 50.53 million) and ‘Cash and cash equivalents’ (increased by $69.64 million). Tempered by ‘Securities purchased under resale’ that decreased by $79.49 million to $15.28 million.

Shareholder’s equity closed at $619.65 million (2020: $567.10 million). This resulted in a book value per share of $2.90 (2020: $2.65).


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