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Caribbean Assurance suffers $13.4 million net loss

Insurance brokerage firm Caribbean Assurance Brokers Limited (CAB) has reported an unaudited net loss of $13.4 million for the six-month period ended June 30, 2020. This new result follows a net loss of $5.5 million in the previous corresponding period.

A Caribbean Assurance Brokers agent office in Brown’s Town, St Ann in Jamaica. (Photo: Caribbean Assurance Brokers Limited)

The latest loss, according to CEO Raymond Walker, is attributed to operating losses of $8.6 million, additional finance charges of $2.7 million, and a tax charge of $2 million. He added that while COVID-19 has created a negative impact on some of CAB’s lines of business, “the full impact of the pandemic cannot be fully measured”.

CAB for the six-month period earned gross revenues of $154.2 million, down $13.4 million when compared to the $167.6 million recorded in the previous corresponding period.

The insurance company had recorded a $5.5 million loss for the similar six-month period in 2019.

The decline, Walker indicated to shareholders, was mainly from a $12.8 million reduction in commissions from the Individual Life Division and a $4.7 million reduction in foreign exchange gain.

However, the General Insurance and Employee Benefit Division had increases in commission in excess of 5 per cent.

Total assets for the period under review totalled $639.9 million, an increase of $163.4 million or 34.2 per cent, mainly attributed to increase in receivables and cash and bank balances.

Total equity has grown to $287.4 million as at June 2020, up from $212 million 2019 year- end. This represents an increase of $75.4 million or 35.57 per cent. The increased equity is mainly due to an increase in share capital with the company being listed on the Jamaica Stock Exchange (JSE) Junior Market in March 2020.

Chairman and CEO of Caribbean Assurance Brokers Limited, Raymond Walker at the company’s listing in March 2020.

Caribbean Assurance Brokers Limited is registered by the Financial Services Commission (FSC) as a local insurance broker and as a facultative insurance broker. In both cases, CAB acts on behalf of local people to place their insurance business with local insurers or FSC-approved overseas insurers. It is organised into four business divisions — general insurance, employee benefits, individual life insurance, and international nsurance.