Date: April 3, 2018
Kindly see audited results for IronRock Insurance Company Limited below:
IronRock Insurance Company Limited (ROC), for the year ended December 31, 2017 posted gross premium of $424.46 million relative $127.35 million; this represents a 233% increase. While for the fourth quarter gross premium was $167.19 million relative to $67.93 million for 2016.
Change in gross provision for unearned premiums amounted to $142.65 million compared to $71.95 million in 2016. As a result, gross insurance premium revenue amounted to $281.81 million relative to $46.53 million in 2016, a 506% increase.
Net insurance premium revenue amounted to $78.01 million, relative to $7.79 million in 2016, following, “Reinsurers’ share of change in provision for unearned premiums” of $92.26 million.
Commission expense totalled $31.46 million in contrast to $5.71 million in 2016, while commission income grew by 210% from $10.84 to total $33.63 million.
Operating expenses for the period increased to $134.74 million relative to 2016 figure of $91.07 million. Operating expenses for the quarter climbed 22% to close at $35.35 million (2016: $28.84 million).
Investment income amounted to $30.74 million relative to $59,000 in 2016. Profit on sale of investment amounted to $24.09 million compared to nil in 2016. Foreign exchange loss amounted to $1.31 million compared to a gain of $14.87 million in 2016. As a result, the company recorded a loss before taxes of $47.86 million compared to a loss of $50.32 million the year prior.
Loss for the period totalled $47.86 million compared to a loss of $50.32 million in 2016, a 5% improvement year over year. For the fourth quarter, the company booked earnings amounting to $12.57 million relative to a loss of $12.40 million reported in 2016.
Loss per share for the period totalled $0.22 (2016: $0.24); while EPS for the quarter was $0.06 (2016: $0.06). The stock price as at March 29, 2017 was $3.00. The numbers of shares used in the calculations are 214,000,000.00 units.
According to ROC, “As forecast, the catastrophe reinsurance market has hardened, leading to higher prices and limits on capacity, but we are pleased that we were able to negotiate renewal of our treaties with limited cost increases and that we secured adequate capacity.”
Balance Sheet Highlights:
As December 31, 2017, assets totalled $937.77 million (2016: $679.03 million). Reinsurance Assets and Insurance and other Receivables contributed to the increase in the asset base with a 357% and 253% increase respectively. Reinsurance Assets and Insurance and other Receivables closed the financial year at $190.77 million (2016: $41.72 million) and $166.31 million (2016: $47.12 million) respectively.
Shareholder’s equity closed at $522.54 million (2016: $560.18 million). This resulted in a book value per share of $2.44 (2016: $2.62).
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