GENAC reports 67% increase in first quarter net profits
General Accident Insurance Company Limited (GENAC), for the three months ended March 31, 2018 reported Net Premium Written of $430.59 million for the first quarter of the 2018 financial year, a 25% increase from the $344.45 million reported in 2017. This increase was driven by 12% increase in Gross Premium Written to $2.21 billion in 2018 from $1.97 billion in 2017. Reinsurance Ceded grew by 9% totaling $1.75 billion in 2017 from $1.60 billion in 2017. Excess of Loss Reinsurance Cost amounted to $30.77 million (2017: $22.54 million) a 37% uptick.
Net Changes in Unearned Premiums totaled $65.93 million, compared to $40.39 million that was recorded last year. This resulted in Net Premium Earned of $364.66 million for the quarter relative to $304.06 million, a 20% increase.
Commission Income went up by 46%, year over year, from $128.15 million in 2017 to $187.30 million while Commission Expenses increased by 20% from $96.36 million to $ 115.72 million.
Claims Expenses saw a 6% increase, closing the period at $248.08 million (2017: $233.20 million), while Management Expenses rose 29% to total $172.31 million from $133.69 million in 2017. Management noted that, " our operating expenses grew by 29% resulting primarily from increased staff cost and restructuring."
As a result, GENAC reported an underwriting loss of $7.26 million compared to a loss of $17.03 million in 2017.
Investment Income closed at $43.24 million, moving up 3% when compared with last year's $42.10 million.
Other Income grew significantly to $9.09 million for the quarter relative to $2.77 million in 2017.
In addition, other operating expenses went up by 40% to total $10.20 million in 2018 relative to $7.26 million in 2017.
Profit before Taxation amounted to $34.88 million (2017: $20.58 million). Taxation for the period was $5.81 million (2016: $3.2 million). Consequently, Net Profit totaled $29.07 million relative to $17.37 million in 2016; representing a 67% increase.
As such, EPS for the period is $0.028 (2017: $0.017). The twelve month trailing EPS amounted to $0.23. The number of shares used in our calculations amounted to 1,031,250,000 units. GENAC's stock price last traded at $3.49.
Balance Sheet Highlights :-
Total Assets increased by 17% to $6.39 billion as at March 31, 2018 from $5.47 billion a year ago. 'Due from Policyholders, brokers and agents' and 'Due from reinsurers and co-insurers' contributed to the overall rise to close the year at $1.05 billion (2017: $634.01 million) and $1.35 billion (2017: $928.64 million) respectively. 'Cash & Short Term Investments' tempered the overall growth with a 35% decline to $643.37 million (2017: $985 million).
Shareholder's Equity as at March 31, 2018 stood at $1.95 billion (2016: $2 billion), resulting in book value per share of $1.89 (2017: $1.94).
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