General Accident See’s Stellar Q1 Earnings

• General Accident reported a net profit of $25.64Mn for its first quarter ended March 31, 2022, which represents a 65.2% increase relative to the corresponding period in 2021. This outturn was largely driven by an 11.4% increase in gross premium written to $3.67Bn. This comes as a result of selling more insurance policies across its three operating territories—Jamaica, Trinidad, and Barbados. 
• Genac’s investment consolidated income for the quarter was $44.00Mn compared to the prior year of $48.90Mn. Although lower, the company believes that as interest rates trend upwards, there will be a corresponding increase in its consolidated investment income over the short to medium term. 
• Overall,  the company’s presence in all three of the Caribbean’s largest insurance markets diversifies its underwriting risk and will continue to create economies of scale. Additionally, the company has been investing in digital insurance solutions which will support its business activity going forward. 
• General Accident's stock price has decreased by 2.0% since the start of the calendar year. The stock closed Tuesday’s trading session at $5.88 and currently trades at a P/E of 29.4x earnings which is above the Junior Market Financial Sector Average of 19.6x.

(Sources: Company Financials and NCBCM Research)