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IronRock profit increases ninefold in COVID-19 year

(File photo)

Jamaica’s IronRock Insurance Limited saw its profit grow ninefold from JM$5.01 million at year end 2019 to JM$47.95 million at December 31, 2020..

A 50 per cent subsidiary of Granite Insurance, IronRock is a Junior Market-listed company that commenced operations in March 2016.

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With assets of JM$1.4 billion as at December 31, 2020, the company is a small player in the general insurance market, though it aims to attract high-quality clients. Among the products that IronRock offers are vehicular insurance, home insurance, renters’ insurance, and cargo insurance.

For the financial year ended December 31, 2020, the audited results show that the company posted gross premiums of JM$836.97 million, 19 per cent more than JM$701.42 million recorded in the year before. 

Gross insurance premiums revenue rose to JM$807.06 million, from JM$630.21 million. However, written premiums ceded to reinsurers amounted to JM$647.27 million, increasing 42 per cent year over year, relative to JM$455.58 million in 2019.

As a result, net insurance premium revenue amounted to $193.05 million, falling from JM$221.88 million in 2019.

At the same time, net insurance claims totalled JM$89.56 million for the year ended December 31, 2020 — less than JM$133.43 million in 2019.

Commission earned grew by 72 per cent from JM$86.25 million in 2019 to  JM$148.70 million for the year.

Underwriting loss over the year closed at JM$27.46 million versus a loss of JM$64.17 million in 2019.

Other income

The company benefited from an increase in miscellaneous income of while gain on sale of investment dipped below 2019 figures. Moreover, foreign exchange gains jumped to JM$11.82 million, compared to JM$2.88 million earned in 2019.

IronRock is a small player in the general insurance market, though it aims to attract high-quality clients. (File photo)

In addition, a tax credit of JM$15.12 million contributed to the net profit of JM$47.95 million.

Earnings per share for the year came out at JM$0.22, this compared to  $0.02 in 2019.

Cash to assets

As at December 31, 2020, assets totalled JM$1.40 billion, increasing by 10 per cent year over year. This was mainly due to reinsurance assets increasing to JM$362.53 million, compared to JM$223.98 million in 2019.

The company’s investments decreased by JM$107.61 million to JM$565.31 million at the year end.

Cash and cash equivalents at year end declined significantly to JM$31.58 million as at December 31, 2020, compared to JM$104.39 million reported the year before.

Shareholder’s equity ended the year at JM$567.10 million, compared to JM$549 million in 2019.