Home Businessuite Markets Directors Of General Accident Insurance Company Disappointed With December 2017-Year End Underwriting Loss
Directors Of General Accident Insurance Company Disappointed With December 2017-Year End Underwriting Loss

Directors Of General Accident Insurance Company Disappointed With December 2017-Year End Underwriting Loss

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The Directors of General Accident Insurance Company are disappointed with their December 2017-year end underwriting loss, even as they remain tentatively optimistic that their underwriting performance this year will improve given projected business mix, tightened underwriting process and indication that rates are beginning to trend up.

Reporting to Stockholders in their unaudited financial statements, Managing Director Sharon Donaldson indicated that while 2017 represented their 19th consecutive year of premium growth, Net profit of $238 million, was a reduction of 38% on the $387 million achieved in 2016.

Commenting further she reported that in relation to their Underwriting Performance, General Accident delivered a fair performance during 2017, as Gross written premiums grew by 26% to $7.1 billion in 2017 despite the many challenges.

The industry suffered from steep decline in property rates which significantly impacted the underwriting performance. High claims cost, along with declining premium rates resulted in the company suffering an underwriting loss for the first time in 10 years, she reported.

In 2017, the Company’s claims expense increased by 42% to $1.06 billion. The industry suffered from steep decline in property rates which significantly impacted the underwriting performance. High claims cost, along with declining premium rates resulted in the company suffering an underwriting loss for the first time in 10 years, she reported.

General Accident Insurance Company ended the year with a reduced book value of JA$1.92 billion compared to the JA$1.95 billion for 2016 and generated a return on average equity for shareholders of 12.3% and earnings per share of $0.23 down from the $0.36 in 2016.

To view General Accident Insurance Company Jamaica Limited Unaudited Financial Statements for the Year Ended 31 December 2017 click HERE