By YOURI KEMP
Tribune Business Reporter
The Bahamas’ largest life and health insurer has posted a 35 percent increase in premium revenues for the past six months ending in June.
Colina Holdings Bahamas Limited. (CHBL) in a statement on the company’s Q2 results, said: “The company recorded net income attributable to ordinary shareholders of $6.4m ($0.26 per share) and comprehensive income attributable to the ordinary shareholders totalled $7.0m ($0.28 per share) for the first half of 2022. During the same period in 2021, the net income attributable to ordinary shareholders was $9.9m ($0.40 per share) and comprehensive income attributable to the ordinary shareholders was $6.9m ($0.28 per share).
“Premium revenues total $87.1m for the six months ended June 30, 2022, increasing over the prior year’s gross written premiums of $64.5m. In addition to the Company expanding into general insurance business, the increase in premium revenues is also attributable to a short-term medical insurance product,” said Terence Hilts, chairman of CHBL.
“These new lines of business have contributed to the increase in net policyholder benefits which totalled $48.3m for the first half of 2022, compared to the $43.0 million experienced for the same period in 2021,” said Hilts.
The statement also said: “Net investment income totals $10.3m for the six months ended June 30, 2022 compared to $21.6m for the same period in the prior year. The large change in net investment income is due to unrealized losses on certain investment securities being experienced in 2022, compared to net unrealised gains on investment security positions held during the same period in the prior year.
“Additional net reserves of $10.5m were booked during the period. These additional reserves are included in the provision for future policy benefits net of the changes in reinsurance assets at June 30, 2022.”
“During the reporting period, the company received some significant repayments of certain of its receivable balances which resulted in the large cash balances held at quarter end,” said Hilts. “These assets are expected to be largely redirected, through the balance of the year, towards investment purchases aligned with the company’s long-term investment strategy.”
Total assets at June 30 were $858.3m with invested assets remaining the largest component of total assets, comprising 70.0 percent of total assets.
Shareholders’ equity at June 30 totalled $200.3m and is net of $3.9m in dividend distributions to its ordinary shareholders and $1.2m in dividends to its preference shareholders.
Generally, the company’s financials reflect continuing recovery from the COVID-19 pandemic, most notably the positive economic effects of the reopening of The Bahamas and related uptick in revenue and employment.
“CHBL’s ongoing concentration on methods that fortify its balance sheet and capital position provides the Company with the flexibility necessary to facilitate the needs of policyholders and customers within these ever-changing fiscal conditions,” said Hilts.