Revenues and profit outperforming second quarter of 2021
Jamaican listed insurance brokerage firm, Caribbean Assurance Brokers (CAB) has managed to carve out a small net profit and moderate increase in revenues during the half-year period ended June 30, 2022
The company witnessed revenues and profit outperforming the second quarter of 2021. Net profits for the half year period amounted to J$4.45 million, represents an increase of 121 per cent over the prior comparative period.
This growth reflects the company’s performance as consumer activities continue to increase. Pre-tax profit increased by J$26 million when compared to a loss of J$21.2 million over the prior period.
Total income for the June quarter amounted to J$91.5 million compared to J$80.7 million in 2021, an increase of J$10.8 million or 13 per cent. During the second quarter, CAB reported an increase in commission income of J$11.5 million or 15 per cent.
All insurance segments recorded increases
The International, Individual Life, General and Employee Benefits Divisions all saw increases of 40 per cent, 21 per cent, 17 per cent and four per cent respectively over their prior year comparative performance. This upward movement was mainly attributable to a combined increase in new business activities.
Business development and customer retention strategies were key initiatives employed. The management reports, “while we concentrate on the next half of the year, navigating the changing economic landscape will be critical in continuing this positive trend”.
In addition, the management emphasises that “customer experience and satisfaction are major components in the insurance brokerage industry and digital transformation is critical. Customer expectations are at an all-time high. Therefore, we aim to achieve fast, personalised service and the most seamless experience. This is evident through the development of our customer loyalty app and upgraded website”.
The management promised to continue to be customer service oriented, making the necessary changes to meet their expectations.
Other financial highlights
Turning to other financial highlights, finance related charges for the quarter decreased by J$508,881 (34%) this was attributable to a pay down on the company’s existing mortgage loan as well as reduction of interest expense on lease liability. Operating expenses of J$87.7 million was recorded for the June quarter, down by J$5.2 million or six per cent when compared to 2021.
Among the areas that contributed to the decrease in total expenses included advertising and promotion as well as commission expenses. Total Assets as at June 30, 2022, amounted to J$760 million compared to J$702 million for 2021, reflecting a J$58 million or eight per cent increase.
The increase in assets was primarily due to a J$78 million or 34 per cent increase in receivables. There was a combined J$20 million reduction in property, plant and equipment, deferred tax asset, right of use asset as well as cash and cash equivalents over the corresponding period.
Total Liabilities as at June 30, 2022 were J$370 million, a decrease of J$20.5 million or five per cent over the 2021 corresponding period; driven mainly by a reduction in long term loan of approximately J$40 million or 47 per cent.