ROC reports year end net profit of $35.60 million

February 12, 2021

IronRock Insurance Company Limited (ROC), for the year ended December 31, 2020 posted gross premiums of $836.97 million relative $701.42 million; representing a 19% increase. Fourth quarter gross premium amounted to $233.76 million, a 3% increase when compared to $226.81 million for the corresponding quarter of 2019.

Proportional reinsurance amounted to $603.18 million compared to $413.41 million in 2019. Excess of loss reinsurance amounted to $44.09 million relative to $42.17 million in 2019, a 5% increase year over year. As a result, net premium amounted to $189.70 million (2019: $245.84 million), while for the quarter, net premium declined 28% to $65.46 million (2019: $90.93 million).

Earned premiums ceded to reinsurers closed the twelve months period at $3.35 million, relative to an unearned premium ceded to reinsurers of $23.97 booked in 2019. As a result, net insurance premium revenue totaled $193.05 million for the year ended December 31, 2020 (2019: $221.88 million).

Commission incurred incurred totaled $93.59 million in contrast to 2019’s $75.25 million, while commission earned grew by 72% from $86.25 million in 2019 to total $148.70 million for the year ended December 31, 2020.

In addition, the company booked net claims of $86.79 million relative to $133.43 million in 2019 for the year.

Operating expenses, for the year ended December 31, 2020, increased to $186.07 million relative to $163.62 million in the prior year. As such, underwriting loss over the year closed at $24.69 million versus a loss of $64.17 million in 2019. Moreover, for the fourth quarter, underwriting profit was $39.38 million (2019: $3.52 million).

Investment income increased from $38.71 million in 2019 to $40.21 million for 2020. Miscellaneous income amounted $161,000 (2019: $32,000) and gain on sale of investment amounted to $8.11 million compared to $27.57 million in 2019. Foreign exchange gain amounted to $11.82 million compared to a FX gain of $2.88 million in 2019, as a result total other income fell to $60.29 million (2019: $69.19 million).

As a result, profit for the year totaled $35.60 million compared to a profit of $5.01 million in 2019, an 610% improvement year over year. For the fourth quarter, the company booked profits amounting to $48.64 million relative to a profit of $14.63 million reported in 2019, an improvement of 232% year over year.

Earnings per share for the year totaled $0.17 (2019: EPS: $0.02); while EPS for the quarter was $0.23 (2019: $0.07). The numbers of shares used in the calculations are 214,000,000 units. The stock price as at February 10, 2021 was $3.05 with a corresponding P/E of 18.33 times.

Balance Sheet Highlights:

As December 31, 2020, assets totaled $1.36 billion (2019: $1.27 billion) increasing by 7% year over year. This increase is mainly due to Reinsurance assets increase by 115.09 million to end the year at $339.07 million (2019: $223.98 million). However the movement was tempered by a decrease in Investments by $107.61 million to $565.31 million (2019: $672.92 million).

Shareholder’s equity closed at $554.75 million (2019: $549.38 million). This resulted in a book value per share of $2.59 (2019: $2.57).


Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.