Natalia Gobin-Gunter To Step Down As Chairman In The Face Of A Challenging Year For Key Insurance Company Limited
In the face of a challenging year, Key Insurance Company Limited has again experienced exceptional growth, however, the steep rise in premium income in 2018 resulted in a sharp increase in their claims experience.
This was reported by Natalia Gobin-Gunter, Chairman and Non-Executive Director in the company’s just released 2018 annual report, where she also announced her intention to step down as Board Chairman at the next Board Meeting. However, she will be submitting herself for re-election as a Director.
The results for the 2018 financial year reflect a net loss of $167.49 million as reported in the Audited Financial Statements for the year ended December 31, 2018.
However, for the 2018 fiscal year, total gross premiums written increased by 24 percent to $1,792 billon in contrast with 2017.
In light of the losses incurred during the financial year, the Company reassessed its performance and reorganized its Underwriting Department.
The significant elements of this restructuring involved an implementation of the first phase of the Company’s Enterprise Risk Management framework with the use of data analytics, a redefinition of the Company’s preferred clientele and risk appetite.
The aim of this initiative is to reduce and eliminate the Company’s high motor underwriting risk exposure and restoration of profitability.
The direct losses from the motor business activities contributed to the Company’s inability to achieve its Minimum Capital Test (MCT) ratio.
Key Insurance has embarked on a motor quota share arrangement with external partners which will further assist operations as it relates to the MCT.
This commitment is evidenced by improved levels of the MCT which as at April 2019 was 381.96 percent, exceeding the required 250 percent by the Financial Services Commission (FSC).
Commenting further she indicated that the Management team prudently responded to the loss with an in-depth strategic review of the Company’s operations, analyzing existing business portfolio, and decided that a more conservative risk based approach is to be adopted for 2019.
It is Management’s belief, she said that the Company may initially experience a reduction in its book of business, especially in the earlier part of the financial year.
However, in the immediate future they were committed to a more circumspect and conservative screening process relating to future business. As such, they will be able to better control future claims and thus propel the Company towards sustained growth for 2019 and beyond, she reported.
Although losses were experienced for 2018, administrative expenses were prudently kept in check, as the company made solid returns on their investment portfolio.
The Company’s internal operations were reviewed by the Company’s Compensation, Nominations and Conduct Review Committee and it was determined that for the coming year, staff members would benefit from an increased focus on in-house underwriting skills training and mentoring by industry specialists.
This she said, will reinforce core skills and strengthen the knowledge base of newer employees.
External professional consultants were hired to assist with the necessary changes required to facilitate educational objectives for 2019 as it was felt that all employees will benefit from additional training, in light of the enhanced knowledge base required for the Company’s shift in risk profiling.