Loss of personnel, technological glitch delay Audited report on the general accident | Company
It has been more than five months since the General Accident Insurance Company, GENAC, closed its financial year, but the company has not been able to deliver its audited accounts to the market because of what it says now be issues related to staff resignation and technical issues.
Listed companies have two months to publish their audited accounts, with an authorized extension under the pandemic of a few weeks. But GENAC has long passed even that period and had last promised to make its report available to the market by May 20. The company previously provided its unaudited December fourth quarter results in February, but its audited accounts were still not updated. close on Friday.
Chief Executive Sharon Donaldson told the financial gleaner that the loss of a key staff member delayed the full systems switchover at General Accident’s subsidiary in Trinidad, affecting the company’s year-end calculations.
A patch team was dispatched from Jamaica to fix the issues.
“We had late actuarial valuations from Trinidad. It took a little longer because we had a new system installed, and converting from one platform to another took longer than expected,” Donaldson said between meetings in Trinidad.
She said all issues have now been resolved and reports needed for consolidated figures will be ready in a few days.
Based on the company’s unaudited accounts, General Accident, which has been making acquisitions in the Caribbean since the pandemic, may deliver better results this year than 2020, but perhaps not by much.
Initially, the Insurer General’s fourth-quarter report said annual after-tax profit for 2021 nearly doubled from $194 million to $345 million. However, those preliminary figures were updated with the release of the company’s first quarter results for 2022, showing a dramatic change in net profit of $205 million for 2021.
Growth in the region produced gross premiums written of $3.7 billion for the January to March quarter of 2022, an increase of 11% over the similar period in 2021. Approximately $3.4 billion of that money came from Jamaica, Donaldson said, adding that although it’s still in their infancy, the new acquisitions have done well.
Profit went from $15 million to $25 million.
In the first quarter, she added, the Trinidad branch wrote premiums of $201.2 million, up 40% year-on-year, while the Barbados branch wrote premiums of 108, $7 million, up 75%.
“To put things into perspective, for the first quarter of March, Barbados and Trinidad together contributed 8.4% to our premium income. This is an improved contribution from their 6, 2% from the previous year,” Donaldson said.
General Accident began its involvement in Trinidad in late 2019 with a 55% stake in struggling Motor One insurance. This stake was increased to 100% by 2020. Barbados’ entry was based on a start-up operation in 2020. Donaldson had previously predicted that General Accident T&T would be in the black by the end of 2022, the Barbados to follow soon after. She says that, so far, the affiliates are well ahead of the target.
“Trinidad’s losses are trending down and premium income is progressing well. We’re very optimistic for the rest of the year,” Donaldson said.