Trinidad and Barbados subsidiaries chalked up losses
Regional insurance company General Accident Group is reporting that its Jamaican segment has been the most profitable this year, with the company recording after tax profits of $147.18 million for the nine-month period ended September 2020.
However, this profitability out-turn was less than the after tax profit of $192.53 million that was recorded for the same period n 2019. The Jamaican segment of the group wrote premium of $9.01 billion and contributed profit before tax of $340.6 million.
The Trinidad subsidiary wrote premium of $282 million, which was eliminated by claims and operating expenses. General Accident (Barbados), while still in an embryonic stage, booked premium of $16 million.
There was a slight improvement in the group’s book value, which amounted to $2.67 billion coming from $2.29 billion in 2019.
For the nine-month period, General Accident wrote gross written premium of $9.32 billion, compared to $8.94 billion for the same period last year. Net earned premium improved by 32 per cent to $2.02 billion while net claims charges grew by 38 per cent to $1.36 billion.
Administrative expenses increased by 37 per cent when compared to the same period prior year. General Accident made an underwriting loss of $6.19 million.
The Jamaican portfolio produced a commendable underwriting profit of $117.85 million, compared to the prior period’s underwriting profit of $108.63 million. However, underwriting losses of $124.04 million are therefore attributable to its subsidiaries in Barbados and Trinidad.
The company directors report that, “the inability to re-launch the operations in those markets due to COVID-19 restrictions, did not allow us to execute our plans. This materially affected our operations”.
The company has since completed the planned rebranding of its operations in Trinidad to General Accident Trinidad and has commenced plans to grow the business.
The consolidated investment income for the first nine months of 2020 was $140.46 million compared to prior year of $113.72 million. As a result the company was able to generate annualised return on average equity for shareholders of 7.39 per cent.
With the uncertainty of what lies ahead, General Accident says it will continue to rely on strong relationships with clients, brokers, reinsurers and employees. As of September 30, 2020, General Accident remains in compliance with the capital adequacy and liquidity metrices prescribed by the Financial Services Commission.
The board and management of the group reports that they are committed to ensuring that General Accident continues on its growth path for the year ahead noting, “we do expect to have a strong last quarter for 2020, provided we have no material natural disaster or event”.