JAM | Jul 27, 2022

Key Insurance continues its rebound

/ Our Today

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The Cross Roads headquarters of Key Insurance Company Limited along Half-Way Tree Road in St Andrew. (Photo: Key Insurance Company Limited)

Durrant Pate/Contributor

Key Insurance Company Limited continues its strong rebound with profitability improving for the half-yearly period ended June 2022.

Key, which was taken over by the GraceKennedy Group over a year ago having chalked up a number of quarterly losses, has seen its profit before taxation jump to J$17.69 million compared to J$2.72 million last year. There was a taxation charge for the period under review of J$5.44 million compared to J$906,000 in 2021.

As such net profit for the period totalled J$12.25 million relative to J$1.81 million as at June 30, 2021. Net profit for the June quarter closed at J$9.96 million versus J$1.04 million in 2021.

The management of Key reports that “the improved results for the period are attributable to the performance of both the insurance and investment segment of KEY’s business.”

Total comprehensive loss recorded

On the negative side, Key is reporting a total comprehensive loss for the period under review amounted to $24.87 million, representing a sharp decline from an income of J$3.68 million for the six months ended June 2021. For the June quarter, total comprehensive loss amounted to J$20.20 million, relative to an income of J$7.35 million booked in 2021.

Key registered a 14 per cent increase in net premiums written from J$665.12 million in 2021 to J$759.54 million for the period under review. This performance stemmed from a 21 per cent increase in gross premium written, which closed the period at J$1.10 billion (2021: J$915.51 million).

‘Reinsurance ceded’ for the period rose to J$344.32 million relative to J$250.39 million in 2021. Net premiums written for the second quarter increased 15 per cent to J$397.40 million compared to J$345.61 million booked last year.

Net premiums earned rose by 29 per cent to J$706.62 million from J$548.19 million in 2021. This was as a result of a change in unearned premium of J$52.91 million relative to a change in unearned premium of J$116.94 million for 2021.

Underwriting loss

(Photo: H&R Block)

The company booked an underwriting loss of J$45.38 million as at June 30, 2022, relative to a loss of J$57.80 million. This was attributable to an increase in claims expense to J$424.12 million for the six months ended June 30, 2022, compared to $338.20 million reported for the same period last year.

Underwriting loss for the second quarter amounted J$29.51 million, relative to a loss of J$20.68 million reported twelve months earlier. Administrative and other expenses totalled J$288.51 million for the six months, a 20 per cent increase when compared to J$239.81 million the prior year.

‘Commission on premium written’ increased by 37 per cent to total J$99.48 million (2021: J$72.81 million), while ‘commission on reinsurance ceded’ closed the period at J$60.11 million (2021: J$44.83 million), a 34 per cent increase year over year. Investment income totalled J$47.93 million, a 111 per cent increase relative to J$22.76 million reported for last year’s corresponding period.

At the same time, other income fell 60 per cent to J$15.14 million from J$37.76 million in 2021. Key’s total assets amounted to J$4.61 billion as at June 30, 2022, down from J$4.88 billion for the corresponding period in 2021.

This represents a six per cent decrease year over year. This was mainly as a result of a decline in assets due from reinsurers, which moved from J$1.64 billion as at June 30, 2021 to J$1.08 billion as at the corresponding period in 2022.

‘Total Stockholders’ Equity’ as at June 30, 2022 was J$1.05 billion (2021: J$930.67 million), resulting in a book value of J$1.88 (2021: J$1.66).


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