Consolidated investment income set to rise over short to medium term

Durrant Pate/Contributor

General Accident Insurance Company is reporting mixed performance over the September quarter as revenues went up but profit declined.

Gross written premiums for the quarter increased to J$13.1 billion, up from the J$11.5 billion booked for the corresponding period last year, while net profit declined to J$277.3 million from the J$350.9 million posted during the corresponding period last year. The group produced an after tax profit of J$277.3 million for the nine-months ended September 2022.

During the quarter, the Jamaican operation of General Accident wrote premiums of J$12.1 billion and contributed profit before tax of J$297.1 million. The Trinidad subsidiary wrote premiums of J$653.9 million, a 45.1 per cent increase over the J$450.6 million written for prior year.

At the same time, the Barbados subsidiary wrote premiums of J$291.1 million compared to J$214.0 million written for prior year. Earnings per share for the quarter declined to J$0.25, up from J$0.39 IN 2021.

Total assets climbed to J$12.92 billion, up from the J$11.19 billion booked last year. Retained earnings contracted at J$2.13 billion compared to J$2.21 billion for the same period last year.

Underwriting and investment performance

General Accident continues to benefit from growth across the region achieving gross written premiums of J$13.1 billion, an increase of 14 per cent compared to prior year. Net earned premiums increased by 13 per cent while net claims incurred and administrative expenses increased by 21 per cent and 20 per cent, respectively.

Consequently, General Accident produced underwriting profit of J$211.9 million. The company’s consolidated investment income for the nine months ended September 30, 2022 was J$250.3 million compared to prior year’s amount of J$147.6 million.

Notably, with interest rates trending upwards, General Accident is expecting a corresponding increase in its consolidated investment income over the short to medium term. The Jamaica-based regional insurance company continues to enjoy excellent growth in premium income across the region, primarily due to increase penetration of the broker markets in Barbados and Trinidad.

According to the board and management team, “although we have not achieved the profitability targets in all regions, we remain committed to our growth plans and are confident that we will meet our strategic objectives. As of September 2022, General Accident remains in compliance with the capital adequacy and liquidity metrics prescribed by the Financial Services Commission, in Jamaica, Barbados and Trinidad”.

The company remains focused on cementing its market leadership in Jamaica, growing its operations in Trinidad and Barbados, and placing technology at the core of its operations.