Profitability, however, falls to J$51.96 million
IronRock Insurance Company has surpassed J$1 billion in gross written premiums for the financial year ended December 31, 2022.
Gross written premiums ended the year at J$1.10 billion, up 25 per cent from the J$881.21 million posted for 2021. For the December quarter, gross written premium amounted to J$344.60 million, which is a 32 per cent increase year-over-year from the J$260.67 million booked in 2021.
Proportional reinsurance for the year ended at J$880.04 million compared to J$634.28 million in 2021. Excess of loss reinsurance totalled J$55.95 million (2021: J$52.48 million), resulting in a net written premium of J$168.26 million, up from J$194.45 million in 2021.
For the December quarter, net written premium amounted to J$49.44 million, down 26 per cent compared to J$66.70 million booked in the corresponding quarter of 2021.
Drop in insurance premium revenue
Net insurance premium revenue for the year declined 11 per cent to J$168.44 million (2021: J$190.28 million), while for the December quarter, net insurance premium revenue declined six per cent to J$45.07 million (2021: J$48.07 million). The management reports an increase in gross growth revenue across all classes.
“We had robust growth in gross revenue across all classes, but in particular our Engineering class, which benefited from insurance placements associated with the increased construction activity being experienced across the island,” the management commented in its report to shareholders.
Investment income increased 23 per cent to J$53.89 million (2021: J$43.87 million). Miscellaneous income increased significantly to J$3.38 million (2021: J$13,000) while the gain on sale of investment increased five per cent to J$10.37 million (2021: J$9.85 million).
Foreign exchange gain amounted to J$4.16 million (2021: J$25.13 million).
Profit before taxation dropped to J$51.96 million from the J$60.84 million posted in 2021. For the fourth quarter, profit before taxation totalled J$64.58 million, down from the J$70.47 million booked in 2021.
Net profit for the quarter increased two per cent to J$64.58 million (2021: J$63.34 million). Commission expenses incurred increased 16 per cent to J$118 million (2021: J$101.63 million), while commission income grew by 24 per cent to J$215.08 million (2021: J$173.19 million).
Net claims declined 18 per cent to J$74.40 million (2021: J$91.07 million). Operating expenses increased 12 per cent to J$210.96 million (2021: J$188.78 million). As such, underwriting loss closed at J$19.84 million (2021: loss of J$18.02 million). For the quarter, the underwriting profit was J$47.24 million (2021: J$41.93 million).
As of December 31, 2022, assets totalled J$1.85 billion (2021: J$1.54 billion), an increase of 20 per cent year-over-year. This increase was mainly due to short-term investments, which increased 213 per cent to J$252.37 million (2021: J$80.53 million) and reinsurance assets, which increased 41 per cent to J$577.53 million (2021: J$408.32 million).
However, the movement was tempered by a 42 per cent decline in investments to J$370.74 million (2021: J$634.85 million). Shareholder’s equity increased eight per cent to J$668.79 million (2021: J$619.65 million).
This resulted in a book value per share of J$3.13 (2021: J$2.90).