April 13, 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.
Change in gross provision for unearned premiums amounted to $29.91 million compared to $71.21 million in 2019. Resulting in gross insurance premiums revenue of $807.06 million (2019: $630.21 million).
Written premiums ceded to reinsurers amounted to $647.27 million relative to $455.58 million in 2019, a 42% increase year over year and Reinsurers’ share of change in provision for unearned premiums amounted to $33.26 million (2019: $47.24 million). As a result, net insurance premium revenue amounted to $193.05 million (2019: $221.88 million), while for the quarter, net premium declined 23% to $48.42 million (2019: $63.22 million).
Claims expenses incurred closed the twelve months period at $262.05 million (2019: $148.80 million), while Reinsurers’ share of claims and benefits incurred amounted to $172.49 million (2019: $15.37 million). As a result, net insurance claims totaled $89.56 million for the year ended December 31, 2020 (2019: $133.43 million).
Commission expenses 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.
ROC reported a profit before operating expenses of $158.60 million, 59% up from $99.44 million booked December 2019.
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 $27.46 million versus a loss of $64.17 million in 2019. Moreover, for the fourth quarter, underwriting profit was $36.61 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, profit before taxation totaled $32.83 million compared to a profit before taxation of $5.01 million in 2019. For the fourth quarter, the company booked profit before taxation of $45.87 million relative to a profit of $14.63 million reported in 2019.
Tax credit of $15.12 million was recorded (2019: nil), resulting in net profit for the period under review of $47.95 million (2019: $5.01 million). While for the quarter, net profit closed at $60.99 million (2019: $14.63 million).
Total comprehensive for the year totalled $17.72 million compared to $34.67 million booked twelve months earlier.
Earnings per share for the year totaled $0.22 (2019: EPS: $0.02); while EPS for the quarter was $0.29 (2019: $0.07). The numbers of shares used in the calculations are 214,000,000 units. The stock price as at April 12, 2021 was $2.88 with a corresponding P/E of 12.85 times.
Balance Sheet Highlights:
As December 31, 2020, assets totaled $1.40 billion (2019: $1.27 billion) increasing by 10% year over year. This increase is mainly due to Reinsurance assets increase by 138.55 million to end the year at $362.53 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 $567.10 million (2019: $549.38 million). This resulted in a book value per share of $2.65 (2019: $2.57).
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