ROC reports $9.62 million Loss for Nine Months

November 14, 2019

IronRock Insurance Company Limited, for the nine months ended September 30, 2019 posted gross premium of $474.61 million relative $381.51 million reported in 2018; this represents a 24% increase year over year. For the third quarter, gross premium was $156.06 million relative to $99.40 million for 2018, up 57%.

Proportional reinsurance amounted to $284.08 million compared to $226.37 million in 2018. Excess of loss premium totalled $35.62 million relative to $25.20 million for last year. As such, net premium amounted to $154.91 million relative to $129.94 million in 2018, increasing by 19%.

After net unearned premium adjustment of $3.74 million, net earned premium amounted to $158.65 million (2018: $128.66 million).

Commission expense totalled $54.32 million in contrast to $42.98 million in 2018, while commission income grew 18% to total $50.65 million (2018: $43.04 million).

The company booked net claim of $103.80 million relative to $61.02 million in 2018.

Operating expenses for the period increased to $118.87 million relative to 2018’s figure of $110.52 million. This resulted in an underwriting loss of $67.69 million compared to a loss of $42.82 million for 2018.

Investment income for the period amounted to $28.16 million relative to $24.25 million in 2018, a 16% increase. The company booked a gain on sale of investments of $24.88 million (2018: $1.41 million).

Loss for the period totalled $9.62 million compared to a loss of $7.55 million in 2018, a 27% deterioration. For the third quarter, the company booked profit amounting to $1.62 million (2018: $1.07 million).

Loss per share for the period totalled $0.045 (2018: $0.035); while EPS for the quarter was $0.0076 (2018: $0.005). The trailing twelve months EPS is $0.0033. The stock price as at November 14, 2019 was $3.84. The numbers of shares used in the calculations are 214,000,000.00 units.

Balance Sheet Highlights:

As September 30, 2019, assets totalled $1.11 billion compared to 2018’s $923.59 million. This was mainly attributed to an increase in Investments closing the period at $623.42 million, a 41% increase. ROC stated that, “the investment portfolio generated an annualised Investment Income yield of 6.0% and an annualised Total Return of 21%.”

Shareholder’s equity closed at $539.73 million (2018: $524.92 million) resulting in a book value per share of $2.52 (2018: $2.45).

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