General Accident Insurance Company Jamaica Limited and its subsidiaries (General Accident) produced a profit after tax of $147.18 million, for the nine months ended September 2020, compared to the same period last year.
The group of insurance companies, which is an 80 per cent-owned subsidiary of Musson Jamaica, saw the Jamaican segment outperforming embryonic operations in Trinidad and Tobago and Barbados.
In 2019, General Accident acquired a majority stake in Motor One Insurance Company Limited, a Trinidadian motor insurance company headquartered in Port of Spain with a large branch network throughout Trinidad.
In April 2020, the Financial Services Commission of Barbados issued General Accident Insurance Company Barbados Limited – an 80 per cent subsidiary of General Accident Insurance Jamaica Limited, a licence to operate as a registered class two insurer in that island.
The Jamaican segment wrote premium of $9.01 billion and contributed profit before tax of $340.6 million.
The Trinidad counterpart wrote premium of $282 million which was eliminated by the claims and operating expenses.
Described as still in an nascent stage, General Accident Barbados booked premium of $16 million.
General Accident wrote gross written premium of $9.32 billion, compared to $8.94 billion for the same period last year.
Net earned premium improved by 32 per cent to $2.02 billion while net claims charges grew by 38 per cent to $1.36 billion.
Administrative expenses increased by 37 per cent when compared to the same period prior year.
General Accident made an underwriting loss of $6.19 million.
However, the Jamaican portfolio produced an underwriting profit of $117.85 million, compared to the prior period’s underwriting profit of $108.63 million.
Overall, underwriting losses of $124.04 million are attributable to subsidiaries in Barbados and Trinidad.
Management stated, in remarks attached to the results, that the inability to re-launch the operations in those markets due to COVID-19 restrictions, “did not allow us to execute our plans. This materially affected our operations.”
They continued, “We have since completed the planned rebranding of our operations in Trinidad to General Accident and we have commenced our plans to grow the business. “
As at 30 September 2020 consolidated investment income for the first nine months of 2020 was $140.46 million compared to prior year of $113.72 million.
General Accident ended the period with a book value of $2.67 billion and generated annualised return on average equity for shareholders of 7.39 per cent.