February 15, 2024
General Accident Insurance Co. Ja. Ltd. (GENAC) for the twelve months ended December 31, 2023, reported a 18% increase in insurance revenue totalling $9.26 billion compared to $7.88 billion in the corresponding period last year. Insurance revenue for the fourth quarter had a 16% decrease to close at $2.42 billion compared to $2.88 billion for the comparable quarter of 2022.
Insurance Service Expenses amounted to $5.13 billion (2022: $3.91 billion), this represents an increase of 31% year over year.
Net expenses from reinsurance contracts held increased by 3% to $3.62 billion compared to $3.51 billion for the twelve months ended December 31, 2022.
Insurance service result increased by 14% to close at $520.76 million (2022: $456.10 million). For the quarter, insurance service result amounted to $258.26 million (2022:$128.29 million).
Investment income decreased by 52% from $444.94 million in 2022 to $215.38 million in the period under review. As a result, net premium and investment result for the twelve months ended December 31, 2023 amounted to $736.14 million, a 18% decrease relative to $901.04 million reported in 2022.
Other Income for the twelve months ended December 31, 2023, amounted to $291.15 million, a 61% increase relative to $181.11 million reported in 2022. Other Income for the fourth quarter amounted to $96.51 million (2022: $133.24 million).
Other Operating Expenses totalled $482.58 million a 15% increase from the corresponding period last year. (2022: $418.24 million).
Profit before taxation for the twelve months ended December 31, 2023, amounted to $544.72 million, a 18% decrease relative to $663.91 million reported in 2022. Profit before taxation for the fourth quarter amounted to $225.82 million (2022: $308.29 million).
Taxation for the twelve months ended December 31, 2023, had a 95% increase to reach $168.28 million (2022: $86.38 million). As such, Net Profit for the twelve months amounted to $376.44 million, a 35% decrease from the $577.53 million reported in 2022. For the fourth quarter, Net Profit was $122.08 million (2022: $299.19 million).
Total comprehensive income for the period totalled $362.77 million, relative to the $542.97 million reported twelve months prior. For the quarter, Total comprehensive income amounted to $60.77 million compared to the $292.32 million reported in 2022.
Consequently, Earnings Per Share for the twelve months amounted to $0.36 (2022: EPS: $0.51), while Earnings Per Share for the quarter totalled $0.04 (2022: EPS: $0.18).
Notably, GENAC’s stock price closed the trading period on February 15, 2024, at a price of $5.31 with a corresponding P/E ratio of 14.63x.
Balance Sheet Highlights
The company’s assets totalled $10.48 billion (2022: $8.59 billion). The growth in total assets was mainly driven by a 48% increase in ‘Reinsurance contract assets’ to $2.31 billion (2022: $1.56 billion).
Shareholder’s equity was $3.04 billion (2022: $2.88 billion), representing a book value per share of $2.94 (2022: $2.79).
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