Caribbean Assurance Brokers maintained its profitability in 2021 in spite of a poor fourth-quarter performance in which the insurance brokerage suffered a loss.
Profit before taxation for the year ended December 31, 2021, increase to J$57.10 million compared to J$37.59 million in 2020. After incurring tax charges of J$969,693 (2020: J$6.04 million), net profit amounted to J$56.13 million.
This represented a 78 per cent increase when compared to J$31.55 million in the prior corresponding period. However, for the December quarter, the company incurred a net loss of $22.81 million relative to a net profit of J$54.94 million in the fourth quarter of 2020.
Operating profit for the year amounted to J$62.87 million, up from J$42.87 million in 2020, reflecting an increase of 47 per cent year-over-year. However, for the fourth quarter, Caribbean Assurance Brokers booked an operating loss of J$21.85 million relative to a profit of J$54.94 million for the same quarter in 2020.
Revenue up for the year but down in December quarter
Caribbean Assurance Brokers reported revenue of J$423.44 million for the year under review compared to the J$370.64 million booked for 2020, a 14 per cent increase. For the December quarter, revenue went down by 58 per cent closing at J$66.70 million (2020: J$156.97 million).
Other operating income for the year totalled J$39.61 million, up from the 2020 booking of J$26.28 million. As such, total operating income amounted to J$463.05 million (2020: J$396.92 million) for the twelve months ended December 31, 2021.
Total operating income for the fourth quarter amounted to J$70.61 million compared to J$163.99 million recorded for the fourth quarter of 2020.
Total operating expenses was J$400.19 million for the year, representing an increase of 13 per cent on the J$354.05 million recorded in the prior year. Of this, Administrative expenses amounted to J$255.31 million, 10 per cent greater when compared to the J$232.82 million in 2020.
Selling expenses recorded an increase of 20 per cent for the year, totalling J$144.88 million (2020: J$121.23 million). For the quarter, total operating expenses closed the period at J$92.46 million, down from J$104.83 million in 2020, due to a 22 per cent decrease in selling expenses to J$30.17 million and a six per cent decrease in administrative expense to J$62.29 million.
Other financial highlights
Finance cost increased to total J$5.76 million (2020: J$5.28 million), while, for the fourth quarter, finance cost closed at J$1.39 million versus J$1.31 million in the previous comparable quarter.
Total comprehensive income amounted to J$56.13 million compared to J$31.55 million recorded in 2020. As at December 31, 2021, the company’s assets totalled J$627.01 million (2020: J$592.02 million), 24 per cent more than its value as at December 31, 2020.
This was largely due to a 40 per cent increase in cash and bank balance, which amounted to J$201.56 million (2020: J$155.79 million). ‘Property, Plant and Equipment’ tempered the increase, by closing at J$245.20 million (2020: J$255.73 million), reflecting a 10 per cent decrease year-on-year.
‘Total Shareholders’ Equity’ totalled J$388.54 million (2020: J$332.40 million), which translated to a book value of J$1.48 per share (2020: J$1.27).