• Aided by robust growth in insurance revenues, Key Insurance Company (KEY) reported a net profit of $44.11Mn for the six-months ended June 30, 2025, a 71.4% year-over-year increase in profitability.
• Insurance revenues increased by 12.1% to $1.63Bn year-over-year (YoY), primarily driven by steady premium growth in the motor portfolio, which contributed 68.0% of total insurance revenue and grew by 16.8% (YoY).
• Similarly, insurance expenses rose by 14.8%; however, this outpaced topline growth due to increases in both the frequency and severity of motor vehicle accidents. Consequently, claims expenses grew by $115.90Mn, or 19.0%, over the period compared to the same period in H1 2024.
• Management continues to pursue a clear growth strategy focused on revenue expansion, profitability, and operational efficiency. The company is also proactively managing its motor and non-motor portfolios, using data-driven insights to target high-value opportunities, optimise underwriting, and improve claims outcomes.
• Of note, on March 17, 2025, GraceKennedy Financial Group Limited (GKFG) launched an offer to acquire all outstanding ordinary shares of Key Insurance, totaling 149,521,334 units, not already held by GKFG or its affiliates. At the close of the offer, GKFG secured an additional 26.5% of Key’s total issued share capital, increasing its ownership from 73.2% to 98.8%.
• Since the offer closed on July 11, 2025, the liquidity of the stocks has fallen sharply, with the average daily trading volume dropping by over 98.3% to just 256 units.
• KEY’s stock price has increased by 23.6% since the launch of the offer for sale; however, year to date, the share price has appreciated by 9.4%. The stock closed Tuesday’s trading session at $2.67 and currently trades at a P/B of 1.01x above the Main Market Financial Sector Average of 1.1x.

(Sources: JSE and NCBCM Research)

• Despite a decline in revenues in the second quarter ending June (Q2 2025), Regency Petroleum Limited (RPL) recorded a 36.0% increase in earnings as the net effect of lower petroleum prices and volumes sold at its new location in Spanish Town benefited the company.
• The new location helped to drive the increase in volumes sold; however, despite the increase in the volume of 87 and 90 octane fuel sold during the quarter, revenues declined by 10.7%, due to the fall in petrol prices. The average prices for 87 and 90 octane fuel declined by 10.5% and 10.7%, respectively.
• While the price reduction negatively impacted revenues, it had a positive impact on margins as the cost of sales declined at a faster pace of 19.4% to $338.67Mn. Consequently, this resulted in an 853bps increase in gross margin to 21.3%. Falling ex-refinery prices for gasoline typically allow retailers like RPL to widen margins and improve profitability.
• However, the company saw a sharp increase in operating expenses. Total operating expenses were 39.6% higher at $46.12Mn relative to the prior period of $33.04Mn as the company opened its new Spanish Town Road service station in January. The new location has increased expenses like staff costs, security costs, and depreciation expenses. RPL also spent more on repairs and maintenance during the period related to various service stations and filing stations across the country.
• That said, it benefited from a $983,300 expected credit loss write-back as the company recovered funds owed from LPG customers.
• The company’s new truck stop in Crawford, St. Elizabeth, is currently being developed and has made significant progress since the announcement, as construction continues on the convenience store and other parts of the location.
• Operating under a dealer-owned, dealer-operated model, the truck stop will allow RPL to generate recurring revenue through fuel supply and franchising without bearing full operational costs, potentially boosting margins. The strategic expansion, coupled with a first-mover advantage in the truck stop segment, positions RPL to strengthen its market presence, enhance operational efficiency, and support long-term earnings growth. The company also hinted at a second service station project expected to break ground by year-end, reinforcing the company’s aggressive growth trajectory.
• RPL’s stock price has increased by 18.5% since the start of the calendar year. The stock closed Tuesday’s trading session at $3.91 and currently trades at a P/B of 9.9x above the Junior Market Distribution Sector Average of 3.8x.

 (Sources: JSE & NCBCM Research)

• The Inter-American Development Bank (IDB) approved a US$30Mn Conditional Credit Line for Investment Projects (CCLIP) to aid in Guyana’s efforts to enhance its water and sanitation infrastructure. According to the IDB, CCLIP aims to enhance the resilience, quality, and sustainability of the services provided by Guyana Water Incorporated (GWI), including drinking water and sewerage services.
• With the IDB credit line, Guyana can continue its effort to upgrade and transform the potable water supply sector. It is said that GWI will also undergo a digital transformation, enabling the adoption of modern technologies and tools to improve operational management, reduce costs, and increase revenue.
• Additionally, the main objective of the investment includes the construction of a new water treatment plant at Diamond, along with approximately 15 kilometres of transmission pipelines and interconnections to facilitate the integration of the new plant with existing distribution networks. With the programme’s support for reducing Non-Revenue Water initiatives, work will be undertaken to advance Guyana’s leak detection and repair efforts, along with public awareness campaigns.
• The IDB also approved a Specific Investment Loan (ESP) of US$15.57Mn to improve the water and sanitation infrastructure in Guyana. Aiding the government’s push for potable water nationwide, a 38.0% increase was seen in 2020 and over 90.0% in 2025, with the primary objective of achieving 100.0% potable water coverage by year-end.
• The US$30Mn CCLIP has a repayment term of 25 years, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). It will also benefit from a co-financing contribution of US$36.33Mn to be financed by the Japan International Cooperation Agency (JICA).
• Over the past five years, Guyana has embarked on a transformative journey in the water and sanitation sector to increase potable water supply by constructing new water treatment plants, installing transmission mains to improve the quality of service to citizens nationwide, and drilling new wells in both coastal and hinterland communities to extend access to safe water supply.

(Source: Caribbean News Global)

• Costa Rica is projected to experience solid economic growth in 2025, with forecasts pointing to a moderate slowdown but still strong performance compared to many regional peers. According to the International Monetary Fund (IMF), Costa Rica’s GDP growth is expected to be around 3.4% to 3.5% this year, supported by robust fundamentals, sound policies, and a diverse economic base.
• This anticipated growth rate marks a slight moderation from the higher rates seen in recent years. Costa Rica has averaged over 5.0% growth annually since 2021. The slowdown reflects global and regional headwinds, including weaker external demand, tighter global financial conditions, and increased policy uncertainty.
• Despite these challenges, the country’s strategic location, strong export sectors, particularly in technology and business services, and economic diversification are expected to sustain continued growth momentum.
• Costa Rica’s fiscal situation has improved, with public debt declining steadily below 60.0% of GDP and ongoing fiscal consolidation efforts. Inflation is forecast to moderate and align with the Central Bank’s target of near 3.0% by 2026. The country has also secured a US$1.5Bn flexible credit line from the IMF, providing a buffer against external shocks, underlining strong policy frameworks and economic resilience.
• Key sectors driving growth include financial services, agriculture, construction, and the service sector, notably high-value industries like technology, business process outsourcing, and tourism. Free trade zones remain vital, attracting foreign investment and supporting export growth.
• While growth is expected to be positive, risks remain on the downside from external pressures such as US economic slowdown, tariff impacts, and global uncertainties. Nevertheless, Costa Rica stands out in Central America for its strong economic fundamentals and steady policy progress, positioning it well to maintain its role as a leading regional economy in 2025. The country also faces ongoing challenges, including managing public spending and expanding opportunities for broad-based economic participation.
• Costa Rica’s growth forecast for 2025 contrasts with some of its neighbouring countries facing more significant economic challenges, highlighting Costa Rica’s relative stability and resilience in a complex global environment.

(Source: Tico Times)

• U.S. consumer prices increased moderately in July, though rising costs for services such as airline fares and some tariff-sensitive goods like household furniture caused a measure of underlying inflation to post its largest gain in six months. The mixed report from the Labour Department's Bureau of Labour Statistics (BLS) on Tuesday did not change financial market expectations that the Federal Reserve would cut interest rates in September amid signs of a deterioration in labour market conditions.
• Economists, however, cautioned that higher prices from President Donald Trump's sweeping tariffs were still coming. They argued that businesses continued to sell merchandise accumulated before the import duties came into effect.
• While financial markets breathed a sigh of relief on the data, concerns are mounting over the quality of inflation and employment reports following budget and staffing cuts that have resulted in the suspension of data collection for portions of the Consumer Price Index basket in some areas across the country. Those worries were amplified by the firing of Erika McEntarfer, the head of the BLS, early this month after data showed stall-speed job growth in July.
• "Investors might want to hold back on the no-inflation celebration, however, because the goods sitting on store shelves arrived on boats months ago and the tariff hikes have yet to be applied to the goods on ships steaming the consumers' way right now," said Christopher Rupkey, chief economist at FWDBONDS. "Inflation is coming."
• The CPI rose 0.2% last month after a gain of 0.3% in June. The moderation reflected a 2.2% decline in gasoline prices. Food prices were unchanged after rising 0.3% for two straight months. Grocery store food prices fell 0.1% as a 3.9% drop in the cost of eggs more than offset a 1.5% increase in beef prices and 1.9% rise in the cost of milk.
• In the 12 months through July, the CPI advanced 2.7%, matching the rise in June. Economists polled by Reuters had forecast the CPI would rise 0.2% and increase 2.8% on a year-over-year basis. Excluding volatile food and energy components, the CPI rose 0.3%, the biggest gain since January, after climbing 0.2% in June. The so-called core CPI was lifted by higher prices for services, including a 4.0% rebound in airline fares as well as strong increases in the costs of healthcare and dental services.

(Source: Reuters)

• Britain's jobs market has weakened again, official data showed, with payrolls falling for a sixth month and vacancies dropping further, wage growth stayed strong, underscoring why the Bank of England is so cautious about cutting interest rates.
• With the central bank's policymakers split over the risks of a hiring slump and a pickup in inflation pressures, the Office for National Statistics' figures pointed to a continued cooling of the labour market, albeit less sharply than in recent months.
• The number of employees on company payrolls, as measured by tax office data, fell by a provisional 8,000 in July from June, extending a run of declines that began in February but was the smallest decline in that run. The reduction in June was revised down to 26,000, fewer than the originally reported fall of 41,000.
• Employers have said Finance Minister Rachel Reeves' decision to raise a tax on them is weighing on their staffing and pay decisions, as well as causing an increase in their prices. Basic wage growth in the private sector - watched closely by the BoE - edged down to 4.8% in the three months to June. But overall average weekly earnings, excluding bonuses, grew by 5.0%, unchanged from the three months to May and above the 3% level seen as consistent with the BoE's 2% inflation target.
• "Today's labour market figures underline the stagflation quandary facing the Monetary Policy Committee," Jack Kennedy, senior economist at job website Indeed, said. "While a further rate cut in November remains on the cards, it's not a done deal with wage growth remaining elevated amid concerns over inflation persistence."
• The BoE last week cut interest ratesto 4% from 4.25%, but only after a tight 5-4 vote by the MPC, which expects headline inflation to hit 4% soon, double its 2% target.

(Source: Reuters)

• Driven by continued strong revenue performance, TransJamaican Highway Limited (TJH) reported a net profit of US$8.71Mn for the second quarter ended June 30, 2025 (Q2 2025), a 24.4% year-over-year increase.
• Second quarter revenues, which consist mainly of toll collections, increased by 13.2% to US$22.50Mn. This was primarily driven by sustained growth in toll collections and increased traffic volumes, supported by wider adoption of the t-tag system. The t-tag is an electronic toll system that lets drivers pay via a prepaid account linked to a T-Tag device, allowing quicker toll plaza passage, and offers a special rate to customers and a free pass on their 10th trip.
• Operating expenses (OPEX) for the quarter rose at a slower pace than revenues, up 10.4% to US$5.90Mn. Increased investment in tolling equipment and spares linked to ongoing technology upgrades, aimed at modernising operations and improving efficiency for commuters, was behind the increase in expenses. The increase also reflects higher marketing spending to support expanded T-Tag adoption and elevated bank charges. Meanwhile, administrative expenses, which primarily consisted of staff costs, depreciation of plant and equipment, and other routine office expenses, inched up 0.7% to US$2.47Mn.
• With revenue growth outpacing OPEX and administrative expenses, its margins expanded. Q2 operating margins increased from 62.1% to 64.7% while net profit margins increased from 34.0% to 36.7%.
• Ultimately, TJH’s strong Q2 performance supported a 27.7% increase in its six-month earnings to US$17.78M. Nonetheless, management continues to explore avenues to expand earnings. TJH signalled a strategic focus in its customer engagement, toll processing, and operational scalability by embracing artificial intelligence and a suite of digital enhancements, which could drive greater cost efficiency. This, alongside increased revenues from higher traffic volumes, fuelled by ongoing residential and commercial developments, and the implementation of its annual toll rate adjustment, is expected to strengthen earnings and enhance shareholder value.
• Despite its strong financial performance and solid dividend payments, TJH’s stock price has decreased by 21.7% since the start of the calendar year and is up 1.1% since its offer for sale in March. The stock closed Monday’s trading session at $3.64 and currently trades at a P/E of 8.3x, which is below the Main Market Energy, Industrial, and Materials Sector Average of 14.5x.

(Sources: JSE and NCBCM Research)

• Jamaica Observer Limited (JOL) and The Gleaner Company (Media) Limited (GCML), one of Radio Jamaica Limited’s subsidiaries, have signed a Memorandum of Understanding (MOU) to examine the feasibility of using common printing and distribution logistics services, i.e., print production and distribution only. Both companies will remain fully independent, with separate ownership, operations, and editorial control.
• The MOU signals the shared intent of two of Jamaica’s most respected media companies to build out a coordinated and efficient print and distribution logistics model. This exploratory agreement marks the start of an important phase of planning and development, during which both entities will work together on the processes and procedures required to form a stand-alone joint venture (JV) while ensuring all relevant regulatory bodies are notified.
• Under the MOU, the companies will collaborate on a range of preparatory activities related to the feasibility of forming a JV, including communications with stakeholders, testing of new processes, staffing assessments, logistics planning, and operational modelling. This phase will also allow both parties to address any regulatory, technical, or organisational considerations ahead of the formal registration of the joint venture entity.
• Through its subsidiary GCML, RJR stands to reduce operational costs if the proposed joint print and distribution venture with JOL proceeds. Consolidating logistics could eliminate redundancies in delivery networks, printing infrastructure, and staffing, all significant cost drivers in the print media sector, which could reduce costs and driving profitability.
• Over the last 5 years, RJR’s earnings have been volatile, and it has recorded a $528.75MN loss in 2024. Its stock price has decreased by 0.80% since the start of the calendar year.

 (Source: JSE & NCBCM Research)

• Brazilian total egg exports, including fresh and processed products, rose almost 305% to 5,259 metric tons in July, reflecting strong demand from the United States after its bird flu outbreak, according to data compiled by industry group Brazilian Association of Animal Protein (ABPA) on Monday.
• The U.S. turned to Brazil after bird flu reduced domestic egg supplies, raising prices and inflation. However, President Donald Trump imposed a 50% tariff on Brazilian goods, including eggs, on August 6.
• In the first seven months of 2025, the U.S. was the main destination for Brazilian egg exports, with 18,976 tons shipped there in the period, representing a 1,419% rise and almost $41Mn in sales, ABPA said.
• Despite strong U.S. demand for egg imports, the tariff on Brazilian food imports, including coffee, beef, and eggs, risks reducing trade. ABPA said it could not predict the impact of tariffs on the egg trade yet.

(Source: Reuters)

• The National Statistics Office (ONE) published its Macroeconomic and Sectoral Statistics Bulletin for the April-June 2025 period, offering a preliminary overview of the performance of the country’s main economic sectors.
• Exports of agricultural and livestock products showed moderate growth. The value of the main agricultural products exported increased by millions of dollars, and livestock products registered positive variations in metric tons. Between April and June 2025, more than 4,000 tons of eggs were exported, representing an increase of more than 109% and more than 600 tons of milk were exported. However, there was a decrease in exports of raw tobacco, avocados, and chilli peppers.
• The private sector demonstrated dynamism, marked by an increase in licensed construction and the appraised value of housing units. In the second quarter, the majority of homes built were apartments, accounting for more than 62%.
• Electricity generation and installed capacity, including renewable sources, showed relative increases. In maritime transport, a positive variation was observed in international cargo, especially in general cargo vessels and container ships.
• The average hotel occupancy rate increased compared to the same period in 2024. Registering 74.2% occupancy between Punta Cana and Bayahibe. In addition, the arrival of non-resident passengers by air increased by 2.5%.
• The Monthly Economic Activity Indicator (IMAE) reflected a slight year-over-year expansion. The stock market registered an increase in net asset value and implicit operating rates. Lending to productive sectors also grew in aggregate terms. Family remittances received and net international reserves showed positive changes. The average exchange rate of the US dollar remained stable, with slight fluctuations within the range predicted by the Central Bank.

(Source: Dominican Today)