Business
CARIB | Aug 19, 2022

General Accident Caribbean operations performed commendably in June quarter

/ Our Today

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Sharon Donaldson, CEO of General Accident Insurance Company. (Photo: genac.com)

Durrant Pate/Contributor

The Caribbean operations of Jamaican-based regional insurance group General Accidents were above par during the June quarter of 2022, with the Jamaican operations being the stand-out performer.

The group produced an after-tax profit of J$17.2 million for the half-year period ended June 2022. For the June quarter, the Jamaica operation stood tall with written premiums of J$9.2 billion and contributed profit before tax of J$161.4 million.

The Trinidad subsidiary wrote premiums of J$399.4 million, a significant increase over the J$281.4 million written for the prior year. The Barbados subsidiary wrote premiums of J$199.5 million compared to J$130.9 million written for the previous year.  

The highlights for the group are as follows:

  • Gross written premiums of J$9.8 billion (2021: $7.6 billion)
  • Profit after tax of J$17.2 million (2021: $174.4 million)
  • Earnings per share of $0.05 (2021: $0.20)
  • Total assets of J$12.73 billion (2021: $11.47 billion)
  • Retained earnings of J$1.92 billion (2021: $2.01 billion)

Underwriting performance

General Accident continues to benefit from growth across the region achieving gross written premiums of $9.8 billion, an increase of 11 per cent compared to the prior year. Net earned premiums increased by 11 per cent while net claims incurred and administrative expenses increased by 25 per cent and 21 per cent respectively.

Consequently, General Accident produced an underwriting profit of J$7.2 million. For the June quarter General Accident’s consolidated investment income for the six months ended June 30, 2022, was J$159.7 million compared to the prior year of J$103.0 million.

Notably, with interest rates trending upwards, the Sharon Donaldson-led insurance group is expecting corresponding increases in its consolidated investment income over the short to medium term. She adds that the company continues to enjoy excellent growth in premium income across the region, primarily due to increased penetration of the broker markets in Barbados and Trinidad.

“Although we have not achieved the profitability targets in all regions, we remain committed to earnings to growth plans and are confident that we will meet our strategic objectives,” Donaldson advised. As of June 2022, General Accident remains in compliance with the capital adequacy and liquidity metrics prescribed by the Financial Services Commission, in Jamaica, Barbados and Trinidad (Office of the Financial Services Ombudsman).

The company remains focused on cementing its market leadership in Jamaica, growing its operations in Trinidad and Barbados, and placing technology at the core of its operations. 

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