Caribbean Assurance Brokers is experiencing a bumper growth in its individual life insurance business, which saw a 33 per cent growth during the first quarter of this year.

In addition, the international insurance division saw a marked increase in new business activities while other income saw an improvement of J$2.1 million or 17 per cent. Revenues for the March quarter are up 12 per cent to J$90.60 million versus J$75.08 million booked for the corresponding period in the prior year.

Other operating income totalled J$14.39 million (2021: J$12.26 million) for the March quarter. As such, total operating income for the quarter amounted to J$104.99 million (2021: J$87.34 million).

Total operating expenses are up nine per cent to close at J$101.46 million, up from J$93.29 million recorded in the prior year. Of this, administrative expenses amounted to J$65.66 million, which is four per cent higher when compared to the J$63.30 million in 2021.

19% rise in selling expenses

Selling expenses recorded an increase of 19 per cent totalling J$35.81 million, up from the J$29.99 million posted in 2021. The company says the increase in operating expenses is due to a rise “in professional fees, audit fees, repairs and maintenance as well as staff-related costs, as we boost human resources capabilities to prepare for continued growth in demand.”

The management commented that, “our focus for the remainder of the year is to complete the implementation of our system that will see improved customer services delivery.” Operating income amounted to J$3.52 million, reversing the operating loss of J$5.95 million booked in 2021.

Finance costs decreased 28 per cent to J$1.07 million (2021: J$1.48 million), mainly due to pay down on existing mortgage loans.

Profitability

Profit before taxation amounted to J$2.45 million compared to a loss of J$7.43 million in 2021. After incurring tax charges of J$634,920 (2021: J$448,752), as a result net profit amounted to J$1.81 million, compared to a net loss of J$7.88 million in the prior corresponding period.

Total comprehensive income amounted to J$1.81 million reversing the comprehensive loss of J$7.88 million recorded twelve months earlier. As at March 31, 2022, Caribbean Assurance Brokers’ assets amounted to J$683.89 million (2021: J$573.68 million).

This is 19 per cent more than its value as at March 31, 2021. This was due to a 97 per cent increase in ‘Cash and bank balances’ which amounted to J$285.89 million (2021: J$144.93 million).

Total shareholders’ equity totalled J$390.35 million (2021: J$324.52 million), which translated to a book value of J$1.49 per share (2021: J$1.24).