Jamaican operations leads segment growth

General Accident Insurance Company Group has recorded a three-fold increase in net profits for the combined three quarters of 2021.

During the period under review, the Jamaica-based insurance group produced a net profit of $350.95 million compared to prior year of $124.64 million. The Jamaican segment of the group wrote premium of $10.83 billion and contributed profit before tax of $595.48 million.

The Trinidad subsidiary wrote premium of $450.61 million, a significant increase over the $282 million written for the nine months in 2020. General Accident (Barbados) booked premium of $213.97 million compared to $16 million for the same period in 2020.

The highlights for the group are as follows:

·      Net profit after tax of $350.95 million, (2020: $124.64 million)

·      Earnings per share of $0.39 (2020: $0.14)

·      Book value of $3.41 billion (2020: $3.08 billion)

·      Annualized return on average equity of 14.66% (2020: 5.47%)

·      Gross written premium of $11.50 billion, compared to $9.32 billion

·      Net earned premium improved by 10% to $2.22 billion

·      Net claims charges also saw an improvement of 15% to $1.16 billion

Administrative expenses jumped 18 per cent

Administrative expenses increased by 18 per cent when compared to the same period prior year. General Accident Insurance Group made an underwriting gain of $344.68 million.

The Jamaican portfolio produced a commendable underwriting profit of $490.74 million, compared to the prior period’s underwriting profit of $117.85 million. The consolidated investment income for the first nine months of 2021 was $147.62 million compared to prior year of $140.46 million.

General Accident Insurance group continues to be impacted by COVID-19 but the company is anticipating that with the increased vaccine take-up, some level of normalcy will return to the country.

Strong last quarter expected

The board is expecting a strong last quarter for 2021, provided there is no material natural disaster or event. General Accident Insurance group reports that it will continue to rely on its digital platform, along with its strong relationships with clients, brokers, reinsurers and employees to continue delivering our service.

The insurance group ended the review period with a book value of $3.41 billion and generated annualised return on average equity for shareholders of 14.66 per cent. As of September 30, 2021, General Accident Insurance group remained in compliance with the capital adequacy and liquidity metrices prescribed by the Financial Services Commission

The board and management of the group are committed to ensuring that General Accident continues on its growth path for the year ahead.