November 15, 2022

IronRock Insurance Company Limited (ROC), for the nine months ended September 30, 2022 posted gross premium of $759.65 million relative $620.54 million; this represents a 22% increase year over year. For the third quarter gross premium rose by 27% to total $265.42 million compared to $209.40 million in 2021.

Proportional reinsurance amounted to $603.77 million compared to $452.45 million in 2021, while excess of loss reinsurance closed the period at $37.06 million (2021: $40.34 million), 8% down from the prior year’s corresponding period.

As a result, net premium revenue amounted to $118.82 million relative to $127.24 million in 2021, a 7% decrease. While for the quarter, net premium revenue decreased marginally to close at $45.09 million (2021: $45.13 million).

Net earned premium, for the nine months ended September 30, 2022, amounted to $123.37 million (2021: $142.21 million), with net unearned premium adjustment of $4.55 million (2021: $14.46 million). During the quarter, net earned premium amounted to $45.71 million (2021: $48.70 million), after unearned premium adjustment of $627,000 (2021: $3.58 million).

Commission incurred totalled $88.14 million in contrast to $75.53 million in 2021, while commission earned grew by 31% from $88.56 million in 2021 to total $116.12 million for the period under review.

Net claims declined by 15% from $70.10 million in 2021 to $59.89 million for the nine months ended September 30, 2022. In addition, operating expenses went up by 10% to $158.54 million (2021: $144.32 million). As such, underwriting loss for the period amounted to $67.08 million relative to a loss of $59.18 million a year earlier. Underwriting loss for the quarter amounted to $17.25 million compared to the underwriting loss of $27.94 million reported in 2021.

ROC recorded $54.46 million for total other income, relative to $50.33 million booked for the nine months ended September 2021. Of this:

Investment income amounted to $39.28 million relative to $31.78 million in September 2021.

Foreign exchange gain amounted to $3.18 million versus $15.60 million in September 2021.

Gain on sale of investment amounted to $8.62 million versus $2.95 million in September 2021.

Bank interest amounted to $3.38 million versus $11,000 booked September 2021.

As a result, the Company recorded a loss before taxes of $12.62 million compared to a loss of $8.85 million the prior period, while profit before tax for the quarter totalled $13.46 million relative to a loss of $6.05 million for the comparable quarter in 2021. Since there was no tax recorded for the period, net loss amounted to $12.62 million (2021: net loss of $8.85 million). For the quarter, net profit closed at $13.46 million compared to loss of $6.05 million in the same period last year.

Loss per share accumulated to $0.06 (2021 LPS: $0.04), while for the quarter, earnings per share amounted to $0.063 (2021 LPS: $0.028). The trailing twelve months earnings per share amounted to $0.23. The stock price as at November 15, 2022 was $2.60 with a corresponding P/E of 11.14 times. The numbers of shares used in the calculations are 214,000,000.00 units.

Balance Sheet Highlights:

As at September 30, 2022, ROC’s assets totalled $1.72 billion (2021: $1.44 billion), 19% greater than the amount booked during 2021. ‘Short Term Investments’ contributed to the increase in the asset base closing the period at $139.81 million (2021: $30 million). The movement was offset by ‘Deferred taxation which declined to $7.99 million from $15.12 million in 2021.

Shareholder’s equity closed at $608.44 million (2021: $558.87 million) which resulted in a book value per share of $2.84 (2021: $2.61).

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