November 15, 2023
Key Insurance Company Limited (KEY) for the nine months ended September 30, 2023 reported a 22% increase in Insurance Revenue totaling $1.98 billion compared to $1.62 billion in the corresponding period last year. Insurance Revenue for the third quarter had a 22% increase to close at $688.70 million compared to $566.00 million for the comparable quarter of 2022.
Insurance service expenses amounted to $1.35 billion (2022: $1.23 billion), this represents an increase of 10% year over year. Consequently, net expenses from reinsurance contracts held increased by 63% to $659.93 million compared to $405.99 million for the nine months ended September 30, 2022. The company booked net expenses from reinsurance contracts held of $204.66 million for the third quarter versus $136.49 million reported for the similar quarter of 2022.
Insurance Service Result increased by 53% to close at $35.52 million (2022: $23.22 million), while Investment income increased by 51% from $93.91 million in 2022 to $141.34 million in the period under review. As a result, net insurance and investment result for the nine months ended September 30, 2023 amounted to $105.82 million, a 50% increase relative to $70.70 million reported in 2022.
Other income for the nine months ended September 30, 2023, amounted to $31.37 million, a 14% decrease relative to $36.62 million reported in 2022. Other income for the third quarter amounted to $5.06 million (2022: $21.48 million).
Other operating expenses totalled $76.69 million a 14% increase from the corresponding period last year. (2022: $67.34 million) while Profit Before Taxation totalled $60.50 million a 51% increase from the corresponding period last year. (2022: $39.97 million)
Taxation for the nine months ended September 30, 2023, amounted to $20.10 million, a 61% increase relative to $12.50 million reported in 2022. Taxation for the third quarter amounted to $13.65 million (2022: $7.06 million).Net profit after Taxation for the nine months ended September 30, 2023 had a 47% increase to reach $40.40 million (2022: $27.48 million) . Total Comprehensive income for the nine months amounted to $40.40 million, relative to a loss of $12.19 million reported in 2022. For the third quarter, Total Comprehensive income was $27.48 million (2022: $12.68 million).
Consequently, Earnings Per Share for the nine months amounted to $0.07 (2022: EPS of $0.05), while Earnings Per Share for the quarter totaled $0.05 (2022: EPS of $0.03). The twelve-month trailing EPS was $0.12 and the number of shares used in these calculations was 559,323,101.
Notably, Key’s stock price closed the trading period on November 15, 2023 at a price of $2.89 with a corresponding P/E ratio of 24.05x.
Balance Sheet Highlights
The company’s Total assets rose 14% to $4.16 billion (2022: $3.64 billion). This was mainly due to a 39% increase in ‘Cash and deposits’ to $1.58 billion (2022: $1.14 billion).
Shareholder’s equity was $1.31 billion (2022: $1.22 billion), representing a book value per share of $2.34 (2022: $2.18).
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