Durrant Pate/Contributor

Regional insurance company General Accident Insurance (GENAC) has seen a 50 per cent rise in insurance claims in 2024, as a result of the passage of Hurricane Beryl across the Caribbean last July, causing severe damage in a number of territories, including Jamaica.

The increasing cost of settling claims was also driven by inflation and foreign currency challenges in some territories, coupled with the impact of claims from Hurricane Beryl, resulting in the 50 per cent increase year-on-year in claims charged.

This resulted in GENAC, which is traded on the Jamaica Stock Exchange (JSE), incurring an overall incurred loss ratio of 57 per cent. 

Despite these challenges, the management’s focus on risk management and customer service enabled the Sharon Donaldson-led insurance outfit to maintain a strong market position. For the year ending December 2024, GENAC generated pre-tax profit of J$421 million, after-tax profit of J$312 million, and an earning per share of $0.30. 

Revenue closed the year at $11.8 billion (38 per cent above the prior year), with all territories exceeding their top-line budgets. According to management, “This success is a testament to our market penetration strategies and deepening of relationships with broker partners. High insurance service expenses, however, have resulted in an insurance service result of $225 million.” 

Territorial performance

GENAC (Trinidad & Tobago) achieved year-to-date insurance contract revenue of $1.9 billion, exceeding the prior year by 32 per cent. With this growth being driven primarily by broker business, the associated commission charges and the high cost of settling claims resulted in significant insurance service expenses and after tax profit of $13 million. 

GENAC (Barbados) produced insurance contract revenue of $776 million, representing premium growth of 34.7 per cent over 2023. The commercial property portfolio continues to be the key growth segment with 43% year on year growth. 

The homeowner’s comprehensive (HOC) segment grew 25 per cent, and the entity was able to effectively utilise all its aggregate property capacity. Despite the impact of claims arising out of the passing of Hurricane Beryl, effective cost management resulted in a profit after tax of $14 million. 

Investment performance 

Investment income of $305 million demonstrates GENAC’s sound investment strategies, with its investment portfolios being closely monitored to maximise returns and minimise risk.

The management reports, “this vigilance has paid off handsomely in overcoming challenges faced in the last quarter of the year”.

“The group’s diversified investment approach has not only safeguarded our assets, but also provided a stable income stream, although 11 per cent behind the prior year, still making a significant contribution to overall profitability.” 

As the regional insurance company move into the new year, it is focused on maintaining its growth trajectory while managing claims costs and ensuring customer satisfaction whilst reiterating its commitment to enhancing operational efficiencies and exploring new opportunities for expansion within the region. 

With plans for further regional expansion on the horizon, GENAC is poised to achieve even greater efficiencies, translating into increased profitability and better service to its customers, while the strategic initiatives employed are designed to strengthen market position and deliver sustainable value to stakeholders.