•      However, investment income continues to be affected by COVID-19 economic and market conditions

IronRock Insurance Company is reporting significant growth in its online businesses, which it has pivoted towards, particularly since COVID-19.

For the third quarter in a row, online transaction volume grew significantly along with the value of these transactions. In its December 2020 fourth quarter, IronRock maintained its emphasis on increasing and improving client engagement through its digital platforms.

Also during the quarter, the company continued to introduce new motor products to the market place. This being the final quarter of IronRock’s financial year, the insurance company was able to calculate and recognize profit commissions from its various reinsurance treaties.

These commissions are tied to the performance of its portfolio and are therefore an indication that the company has upheld a high underwriting standard. At the same time, IronRock managed to continue to grow revenue by 19 per cent for the fourth quarter.

In his report to shareholders, IronRock’s Managing Director, R. Evan Thwaites explained, “Because we can only calculate profit commissions after the financial year is complete; they tend to inflate our underwriting result for the last quarter of the year – as you will see in the following reports. Our investment Income continues to be affected by economic and market conditions, which have kept global debt yields relatively low, despite the arguably higher systemic risk present in most markets.”

IronRock maintaining conservative investment risk approach

With the continued uncertainty caused by the pandemic, Thwaites reports that IronRock will be maintaining its conservative approach to investment risk. In the fourth-quarter, IronRock generated an underwriting profit of $39.4 million.

When compared with the fourth quarter of 2019; this is a significantly improved result, primarily driven by increased net commissions, which rose to $48.0 million and reduced net claims, which fell to $8.2 million. Gross written premium was flat at $233.8 million and net earned premium reduced to $48.4 million, due to increased reinsurance cessions.

Operating expenses increased to $48.9 million while other income slid to $9.3 million. This resulted in a net profit for the quarter of $48.6 million. On a full-year basis, gross written premium increased by 19 per cent. Thwaites advised, “given the difficult economic conditions caused by the pandemic, we are pleased with this outcome.”

Net claims fell by 35 per cent to $86.8 million while net commissions increased by $44.1 million, mainly due to the effects of additional reinsurance placements. After operating expenses of $186.1 million, the company recorded an underwriting loss of $24.7 million, which is much improved from the underwriting loss of $64.2 million recorded in 2019.

Other income amounted to $60.3 million, with the major contributor being investment income of $40.2 million, followed by foreign exchange gains of $11.8 million and gains on the sale of investments of $8.1 million. As a result for the year ended 31 December 2020, IronRock generated a net profit of $35.6 million, an increase of $30.6 million from 2019. This resulted in earnings per share of $0.17 for 2020, up from $0.02 in 2019.