November 14, 2024
Ironrock Insurance Company Limited (ROC)
Unaudited financials for the nine months ended September 30, 2024:
Ironrock Insurance Company Limited (ROC) for the nine months ended September 30, 2024 reported a 28% increase in Insurance Revenue totaling $1.29 billion compared to $1.01 billion in the corresponding period last year. Insurance Revenue for the third quarter had a 17% increase to close at $443.35 million compared to $380.42 million for the comparable quarter of 2023.
Reinsurance Contracts Expense amounted to $773.82 million (2023: $608.29 million), this represents an increase of 27% year over year. Consequently, insurance service contracts expense increased by 28% to $474.36 million compared to $371.57 million for the nine months ended September 30, 2023. The company booked insurance service contracts expense of $147.87 million for the third quarter versus $143.95 million reported for the similar quarter of 2023.
Insurance Service results increased by 45% to close at $40.30 million (2023: $27.76 million), while Investment income increased by 29% from $51.71 million in 2023 to $67.47 million in the period under review. As a result, other income. for the nine months ended September 30, 2024 amounted to $8.02 million, a 54% decrease relative to $17.45 million reported in 2023. Other operating expense totalled $118.37 million a 37% increase from the corresponding period last year. (2023: $87.66 million).
Profit before taxation for the nine months ended September 30, 2024, amounted to $8.31 million, a 23% decrease relative to $10.74 million reported in 2023. Profit before taxation for the third quarter amounted to $7.84 million (2023: $14.48 million). Taxation of 270,000 was reported for the period under review (2023: nil). Profit for the period for the nine months amounted to $8.04 million, a 25% decrease from the $10.74 million reported in 2023. For the third quarter, Profit for the period was $7.57 million (2023: $14.48 million).
Consequently, Earnings Per Share for the nine months amounted to $0.04 (2023: EPS: $0.05), while Earnings Per Share for the quarter totaled $0.04 (2023: EPS: $0.07). The twelve-month trailing EPS was $0.38 and the number of shares used in these calculations was 214,000,000.
Notably, ROC’s stock price closed the trading period on November 13, 2024, at a price of $3.15 with a corresponding P/E ratio of 8.29x.
Balance Sheet Highlights
The company’s assets totalled $1.52 billion (2023: $1.27 billion). The overall growth in the company’s asset base is primarily driven by a 50% year-over-year (YoY) increase in “Investments,” which reached $830.81 million at the end of the quarter (up from $554.79 million in 2023). Additionally, there was a 190% YoY rise in “Assets for Remaining Coverage,” totaling $290.80 million (compared to $100.21 million in 2023), a 32% YoY increase in “Receivables,” which ended the quarter at $17.18 million (up from $13.05 million in 2023), and a 100% YoY growth of $199.48 million in “Securities Purchased Under Resale Agreement.”
Shareholder’s equity was $763.36 million (2023: $674.29 million), representing a book value per share of $3.57 (2023: $3.15).
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