Chalks up year-end net profit of $28.15 million

Durrant Pate/Contributor

IronRock Insurance Company Limited (ROC) has exhibited much resilience in crossing the $1-billion gross written premiums threshold in December 2022, ending a good year for the company.

Gross written premiums went up 25% to J $1.10 billion as at December 31, 2022, up from J$881.21 million during the comparable period in 2021. The growth in gross written premium was even bigger in the December quarter, going up by 32% to close at J$344.60 million, up from J$260.67 million in 2021.

Gross insurance premiums revenue amounted to J$991.90 million, up from J$838.09 million in 2021. Written premiums ceded to reinsurers amounted to J$935.99 million (2021: J$686.76 million), resulting in a net written premium of J$1.05 billion (2021: J$989.43 million).

For the last quarter, net written premium amounted to J$49.44 million, down 26% compared to J$66.70 million booked in the corresponding quarter of 2021. Net insurance premium revenue declined 11% to J$170.11 million (2021: J$190.28 million), while for the quarter, net insurance premium revenue declined 6% to J$45.07 million (2021: J$48.07 million).

Profitability negatively impacted

As a result, profit before taxation was almost cut in half to end the year at J$30.53 million, down from the J$60.84 million posted in 2021. Taxation charge amounted to J$2.38 million (2021: J$7.13 million).

This resulted in a 48% decline in net profit to J$28.15 million coming from J$53.71 million in 2021. For the December quarter, net profit decreased 2% to J$62.20 million (2021: J$63.34 million).

Earnings per share (EPS) dropped to J$0.132 (2021: EPS: $0.251); while EPS for the quarter was J$0.302 (2021: J$0.296). Commission expenses incurred increased 16% to J$118 million (2021: J$101.63 million), while commission income grew by 24% to J$213.41 million (2021: J$173.19 million).

Operating expenses increased 12% to J$211.43 million (2021: J$188.78 million). As such, underwriting loss closed at J$41.27 million (2021: loss of J$18.02 million). For the December quarter, there was an underwriting profit of J$47.24 million (2021: J$41.93 million).

Growth in investment income

Investment income increased 23% to J$53.89 million (2021: J$43.87 million). Other income increased significantly to J$3.37 million (2021: J$13,000). Gain on sale of investment increased 5% to J$10.37 million (2021: J$9.85 million).

Foreign exchange gain amounted to J$4.16 million (2021: J$25.13 million). As of December 31, 2022, assets totalled J$1.89 billion (2021: J$1.55 billion), an increase of 22% year over year.

This increase was mainly due to short-term investments, which increased 132% to J$186.80 million (2021: J$80.53 million) and reinsurance assets, which increased 50% to J$613.21 million (2021: J$408.32 million). However, the movement was tempered by a 27% decline in investments to J$466.30 million (2021: J$634.85 million).

Shareholder’s equity increased 8% to J$644.99 million (2021: J$619.65 million). This resulted in a book value per share of J$3.01 (2021: J$2.90).