IronRock Insurance Company Reporting A Net Loss For Q2 Of JA$1.5M Compared To A Loss Of JA$3.9M In Q2 2018.
IronRock Insurance Company Limited is reporting for the quarter and the six (6) months ended 30th June 2019 a Net Loss for the quarter of $1.5 million compared to a loss of $3.9 million in the second quarter of 2018.
Managing Director R. Evan Thwaites in his Quarterly Review to shareholders included in the unaudited financial statements, indicated that during the quarter, they generated increased new business revenue, with Property and Motor classes being the main drivers of the growth.
Gross Written Premium (“GWP”) was $197.8 million, compared to 2018 Q2 figures of $127.1 million, an increase 56%.
Net Earned Premium (“NEP”) totalled $53.6 million, an increase of 28% over the same quarter in 2018, whilst Net Commission Earned amounted to $0.3 million and Operating Expenses increased by 14% to $41.5 million.
Claims Incurred for the quarter increased by $11.7 million to $32.6 million, compared to 2018 Q2 figures of $20.9 million.
Other Income increased by 65% and totalled $18.7 million, compared to 2018 Q2 figures of $11.3 million, consisting primarily of Investment Income of $9.6 million and Gains on the Sale of Investments of $5.6 million.
On a year-to-date basis, GWP increased by 13%, reversing the reduction experienced in the first quarter and NEP amounted to $101.3 million, an increase of 26%.
Net Commission Earned was negative $2.7 million due to relatively higher growth in the Motor portfolio and Operating Expenses increased marginally by 3.6% to $76.6 million.
Claims Incurred for the period grew by $21.5 million to $59.7 million. Consequently, the Company generated an Underwriting Loss of $37.7 million versus an Underwriting Loss of $30.3 million in 2018.
Other Income increased by 21% to $26.4 million (2018: $21.8 million) with Investment Income of $18 million (2018: $16 million) and realised gains of $5,579 million (2018: $41,000) accounting for the increase.
Thus, year-to-date loss amounted to $11.2 million versus a loss of $8.5 million over the same period in 2018, he reported.
For the six (6) months ended June 30, 2019, receivables increased by 15% to $163.6 million due to the increase in our GWP, while Cash and Investments increased by $45.6 million (11%) to $670.0 million.
Given the important contribution that Investments make to an insurance company’s results, Thwaites said management was pleased with the growth and performance of their Investment Portfolio.
From the start of 2019, the annualised Investment Income yield of the portfolio was 6.2% while the annualised Total Return was an impressive 20.0%, he reported.
Insurance Contract provisions now total $417.0 million, an increase of $57.8 million, with most of the growth attributable to an increase in Unearned Premium Reserves.
The net result was an increase in Shareholder Equity of $22.8 million year-to-date, to end the period at $536.6 million.