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).
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