General Accident Insurance Company eyes expansion as revenue grows by one-third to $11.9 billion

 


Despite the high cost of commissions and brokerage fees from its Trinidad and Tobago and Barbados Operations, General Accident Insurance Company Jamaica Limited and subsidiaries, have plans for further expansion.


Contract revenue grew by over 30 per cent in both Trinidad and Barbados in 2024.

Managing Director Sharon Donaldson noted in the company’s yearend report, “With plans for further regional expansion on the horizon, the group is poised to achieve even greater efficiencies, translating into increased profitability and better service to our customers.

“Our strategic initiatives are designed to strengthen our market position and deliver sustainable value to our stakeholders.”

For the period ended 31 December 2024 , GENAC in unaudited results reported earning overall $0.30 per share for the 2024 financial year.

Insurance contract revenue, closed the year at $11.8 billion (38 per cent above the prior year), with all territories performing above projection, management stated.

High insurance service expenses, however, have resulted in an insurance service result of $225 million.

Managing Director Sharon Donaldson noted, “The increasing cost of settling claims, driven by inflation and foreign currency challenges in some territories, coupled with the impact of claims resulting from the passing of Hurricane Beryl, resulted in a 50 per cent increase year on year in the claims charge. This resulted in an overall incurred loss ratio of 57 per cent.”

Investment income of $305 million came from diversified streams

Growing 11 per cent year over year and contributing to profit before tax which was $421 million and an after-tax profit of $312 million for the year ended 31 December 2024. This compares to net profit of $548.26 million in 2023.



Trinidad

GENAC (Trinidad & Tobago) Limited achieved year-to-date insurance contract revenue of $1.9 billion, exceeding the prior year by 32 per cent. Growth was primarily driven by broker business, but associated commission charges and the high cost of settling claims resulted in significant insurance service expenses, driving the profit after tax to $13 million.

Barbados

GENAC (Barbados) Limited produced insurance contract revenue of $776 million representing premium growth of 34.7 per cent over 2023.

Management observes that the subsidiary’s commercial property portfolio continues to be the key growth segment with 43 per cent year on year growth.

“Despite the impact of claims arising out of the passing of Hurricane Beryl, effective cost management has resulted in a profit after tax of $14 million,” it was noted.

Photo: Managing Director of GENAC, Sharon Donaldson. AIJ photo.

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