Date: July 24, 2018
IronRock Insurance Company Limited (ROC), for the six months ended June 30, 2018 posted gross premium of $282.12 million relative $173.35 million; this represents a 63% increase year over year. For the second quarter gross premium rose by 14% to total $127.10 million compared to $111.41 million.
Change in gross provision for unearned premiums amounted to $177.23 million compared to $132.07 million in 2017 while excess of loss premium closed the period at $15.98 million (2017: $12.89 million), a 24% jump over the prior year’s corresponding period.
As a result, gross insurance premium revenue amounted to $88.91 million relative to $28.39 million in 2017, a 213% improvement while for the quarter, gross insurance premium revenue rose by 164% to close at $40.12 million (2017: $15.19 million).
Net insurance premium revenue amounted to $80.40 million (2017: $23.09 million) with net unearned premium adjustment of $8.51 million (2017: $5.30 million).
Commission expense totalled $27.83 million in contrast to $10.62 million in 2017, while commission income grew by 131% from $12.65 million to total $29.27 million.
In addition, Operating expenses went up by 15% to $73.96 million (2017: $64.47 million). As such, underwriting loss for the period amounted to $30.34 million relative to a loss of $60.62 million a year earlier.
Investment income amounted to $16.08 million relative to $15.20 million in 2017. Foreign exchange gain amounted to $5.66 million versus a gain of $679,000 million in 2017. As a result, the company recorded a loss before taxes of $8.56 million compared to a loss of $46.29 million the prior period.
Loss for the period totalled $8.56 million compared to a loss of $46.35 million in 2017, a 82% improvement year over year while Loss for the quarter totalled $3.90 million relative to the loss of $19.07 million for the comparable quarter in 2017, an 80% improvement.
Loss per share for the six months totalled $0.04 (LPS 2017: $0.22) while loss per share for the quarter $0.02 (LPS 2017: $0.09). The trailing twelve months loss per share amounted to $0.05. The stock price as at July 23, 2018 was $3.10. The numbers of shares used in the calculations are 214,000,000.00 units.
Balance Sheet Highlights:
As at June 30, 2018, ROC’s assets totalled $988.19 million (2017: $807.44 million). ‘Cash and cash equivalent’ contributed to the increase in the asset base closing the period at $117.99 million (2017: $23.07 million). In addition the Company reported ‘Securities purchased under resale’ of $80.02 million for the period relative to nil recorded in 2017.This was however tempered by the reduction in the company’s ‘Investments’ which amounted to $325.19 million (2017: $404.22 million) at the end of the six months.
Shareholder’s equity closed at $513.80 million (2017: $523.70 million) which resulted in a book value per share of $2.40 (2017: $2.45).
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