General Accident reports after-tax profit of $135.28 million for first six months of 2019

General Accident reports after-tax profit of $135.28 million for first six months of 2019

Wednesday, August 21, 2019

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General Accident Insurance Company Jamaica Limited (General Accident), on Friday (August 16) reported an after-tax profit of $135.28 million for the six months ended June 30, 2019. This represents a 42 per cent increase compared to the previous corresponding period.

Chairman of General Accident, P B Scott, in reporting to stockholders, indicated that the company enjoyed improved technical results as underwriting profit of $80.97 million represents positive growth over the prior period's underwriting loss of $7.67 million.

“For the period, General Accident's underwriting performance improved over 2018 as we booked gross written premium of $6.56 billion, an increase of 41 per cent over the same period last year,” he stated in the report.

“Net earned premiums improved by 29 per cent to $988 million while net claims charges grew by 23 per cent to $633 million,” he continued.

Underwriting refers to the process that a lender or other financial service uses to assess the creditworthiness or risk of a potential customer, while premium is the amount paid periodically to the insurer by the insured for covering his/her risk.

“Our investment income for the first half of 2019 was $79.06 million, 12 per cent below prior year of $89.81 million; this represents an annualised return of 4.53 per cent,” he said.

“General Accident ended the second quarter with a book value of $2.19 billion and generated annualised return on average equity for shareholders of 12.8 per cent”.

The company for the quarter under review recorded a book value of $2.19 billion, an increase when compared to the $2.02 billion recorded the prior year.

Scott added that administrative expenses increased by 19 per cent when compared to the same period last year.

He declared that General Accident remains in compliance with the capital adequacy and liquidity metrics prescribed by the Financial Services Commission — the regulatory body that oversees Jamaica's insurance, pension and securities industries.

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