Six months net loss grown to $21.32 million

Losses have been climbing at Caribbean Assurance Brokers for the half year period ended June 30, 2021 with total comprehensive loss amounting to $21.32 million compared to a loss of $13.45 million recorded in 2020.

For the quarter June quarter, total comprehensive loss was $13.44 million relative to a loss of $8.81 million in 2020. Losses before taxation amounted to $21.17 million compared to a loss of $11.36 million in 2020.

At the same time revenues have been inching upwards.

For the half year, revenues went up to $151.29 million compared to the $139.61 million for the prior year, representing an 8% increase.

The management reports that this improvement, “is mainly due to the net increases from the International Insurance Division, General Insurance Division and Employee Benefits Division.”

For the quarter, revenue went up by 10% closing at $76.21 million (2020: $69.52 million).

Other operating income totalled $16.75 million (2020: $14.54 million) for the half year period.

Total operating income up $14 million

As such, total operating income amounted to $168.04 million for the six month period, up from the 2020 posting of $154.16 million, representing a $14 million increase. Total operating income for the second quarter amounted to $80.71 million compared to $71.64 million recorded for the second quarter of 2020.

Total operating expenses totalled $186.23 million for the six months ended June 30, 2021, representing an increase of 14% on the $162.80 million recorded in the prior year. Of this, administrative expenses amounted to $126.91 million, 14% higher when compared to the $111.70 million in 2020.

Selling expenses recorded a 16% increase for the six months totalling $59.32 million (2020: $51.10 million). For the quarter, total operating expenses closed the period at $92.94 million (2020: $77.93 million).

According to the management of the company, “we had increases in expenses such as staff cost related to succession planning and to drive revenue growth in key areas of the business. Advertising and promotion increased due to the promotion of our revamped Credit Union Gold Series Member Plan. Depreciation due to addition to property, plant & equipment also increased over the previous quarter.”

Operating losses chalked up

Operating loss, therefore, amounted to $18.19 million for the six months ended June 30, 2021 (2020: $8.64 million). However, for the second quarter ended June 30, 2021, CABROKERS booked an operating loss of $12.24 million relative to a loss of $6.29 million for the same quarter in 2020.

Finance cost amounted to $2.98 million (2020: $2.72 million).For the quarter, finance cost closed at $1.50 million versus $1.37 million in the previous comparable quarter.

As at June 30, 2021, the company’s assets totalled $702.27 million, 10% more than its value as at June 30, 2020. This was due to largely to increases in ‘Cash and cash balances’, ‘Property, plant and equipment’ and ‘Rights of use’ which amounted to $188.13 million (2020: $141.81 million), $249.99 million (2020: $235.29 million) and $18.28 million (2020: $7.32 million), respectively.