Business
JAM | Jun 1, 2023

Key Insurance exhibiting strong growth potential

/ Our Today

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Revenue grew by $100 million to J$585 million

Tammara Glaves-Hucey, general manager of Key Insurance.

Durrant Pate/ Contributor

Ever since its take-over by Grace Kennedy in 2020, Key Insurance has been moving up and continues to exhibit strong growth potential.

This potential is exhibited in its latest quarterly returns for March 2023 in which the insurance company registered a 20.8% increase in insurance revenue for the first quarter. Revenue grew by J$100.6 million moving from J$484.4 million in March 2022 to J$585 for the quarter under review.

This was largely due to the steady premium growth in the non-motor portfolio, which saw an increase of J$64.5 million or 49% over the similar period in 2022. During the quarter, pre-tax profit increased by 54.4%, growing from J$3.4 million in March 2022 to J$5.3 million in March 2023.    

According to the management, ‘the organic increase in insurance revenue is a testament to the effectiveness of management’s strategic initiatives.  Insurance service expenses increased by J$54.2 million or 14.4% due mainly to increased claims.” 

The company says it is “prepared to face market challenges head-on and management is continuously assessing the non-motor and motor portfolios to recognize, identify and capitalize on opportunities to optimize operational efficiency and increase profits. Increased customer engagement and strategic relationship building will be seminal to our growth strategy and continued success.”

Focus on controlling escalation

In addition, controlling the 18.4% escalation on claims has been a major focus of the company during the first quarter. Key, which is licenced to operate as a general insurer in Jamaica, under the Insurance Act 2001, continues to benefit from the repositioned investment portfolio and the increase in interest rates.

This has resulted in a 188.1% increase in investment income for the first quarter of 2023 compared to the corresponding period in 2022. Despite a challenging economic climate and the risks posed by increased motor claims, reduced capacity in the property insurance market, and the risk of falling interest rates, Key’s Q1 performance highlights the resilience of the company and its strong potential for growth. 

The Half-Way-Tree Road, Kingston 5, based company, whose principal activity is the underwriting of motor, commercial and personal property and casualty insurance, remains committed to executing on its strategic plan, which is focused on increasing revenue and improving profitability.

The company says it is “prepared to face market challenges head-on and management is continuously assessing the non-motor and motor portfolios to recognize, identify and capitalize on opportunities to optimize operational efficiency and increase profits. Increased customer engagement and strategic relationship building will be seminal to our growth strategy and continued success.”

As part of its comprehensive risk mitigation efforts, Key Insurance will continue to “vigilantly monitor the local and global markets and remain nimble in order to adjust our strategies as needed, particularly in response to the threat of decreasing interest rates. Overall, Key continues to place high importance on managing risks, discovering chances for growth, and enhancing the customer experience, while emphasizing staying abreast of trends in order to improve our market position to deliver value to all stakeholders.“

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