General insurance companies pull in $25.3 billion in revenue, but higher claims affect profit
Jamaica General Insurance Company Limited has restructured after a challenging year.

THE Financial Services Commision (FSC), in data released on May 10, indicates that the island’s general insurers continue to see higher claims, with the attached expenses having an impact on net income.

At least one, JN General Insurance (JNGI), said to be the largest industry member by assets, has embarked on restructuring activities.

Jamaica’s 11 general insurers saw combined total liabilities increase by 12.1 per cent to reach $74 billion at December 2021 compared to the $66 billion seen at December 2020. This was due to an uptick in claim provisions.

While accumulated total revenue amounted to $25.3 billion, 2.8 per cent above the amount recorded for the corresponding period in 2020, the FSC reported that combined expenses were $21.8 billion for the reporting period. Expenses were higher than the $21.3 billion reported in 2020.

Net income before tax was $3.4 billion at year-end 2021, compared to $2.8 billion the year before. Net income after tax was $1.9 billion, slipping from $2 billion at year-end 2020.

Asset growth

The FSC indicated that the total assets of general insurance companies were $103.2 billion as at December 2021.

This represented growth of 10.4 per cent over the amount recorded as at December 31, 2020. Aggregate invested assets grew by 8.8 per cent to $57.3 billion at the end of December 2021 (December 2020: $52.7).

Aggregate net premium earned for the twelve-month period ended December 2021 fell by 1.1 per cent to $21.4 billion.

For the general insurers, combined net investment income climbed by 15.8 per cent to $2.2 billion in the reporting period, from the $1.9 billion seen in the corresponding period of 2020. Other income for the general insurers, driven partially by foreign exchange gains, expanded by 54.3 per cent to $1.7 billion.

The FSC said that the accumulated capital base for the general insurance companies rose by 8.2 per cent to $29.1 billion compared to the $26.9 billion as at December 2020.

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