Profit for General Accident rose only 8 percent, for the nine months ending September this year, to $241 million or 23 cents per share.
For the similar period last year, the company reported a net profit of $223 million, putting them on target to exceed 30 cents per share for the full year to December. Profit for the September quarter amounted to $54 million and is up 20 percent over the 2013 results. Premium income grew 91 percent in the quarter and 19 percent for the year to date period, but commission income was up 15 percent in the quarter, and 38 percent for the nine months to September. Underwriting profit climbed 57 percent in the quarter and 39 percent for the year to date. Investment income declined sharply due to slower exchange rate movement in 2014, versus 2013. Administrative expenses climbed 13 percent in the quarter and 20 percent for the nine months to September. The sharp increase in premium income in the September quarter should lead to higher income in the December quarter and raise earnings beyond the level enjoyed in the period to date.
“The company ended the quarter with a book value of $1.62 billion and generated a return on average equity for shareholders for the nine months period of 21 percent,” management stated in a release with the results. Equity at end of September last year was $1.35 billion.
Insurance reserves at the end of the period, stood at $2.1 billion, and is covered by cash and investments, of just over $2 billion.
With the stock trading at $1.53, on the junior market of the Jamaica Stock Exchange it is severely undervalued and has lots room to run accordingly, remains IC Insider BUY RATED.