General Accident Insurance marginally improved profit for the first half of 2014, with net profit rising to just $187 million, from $178 million in 2013. Earnings per share for the six months rose to 18 cents. This year’s performance is not, however, as strong as last year’s 57 percent increase for the same period. For the June quarter, profit came out at $88 million up from $80 million in 2013. Investment income for the first half of 2014 was $125 million, well below the $145 million earned, in the first half of 2013.
For the year to June, gross premiums income grew to $3.44 billion, from $3.24 billion for the first half of last year. Net earned premiums grew to $485 million, from $443 million for the six months in 2013. Premium income fell to $1.9 billion from $2.09 billion and commission income ended at $90 million from $84 million, for the June quarter. For the six months, commission income amounted to $175 million, from $117 million for 2013. The company said, the performance was “as a result of improvement in our core business of underwriting commercial property and motor insurance.”
Claim expenses rose from $310 million for the year to June last year, to $316 million in 2014 and for the June quarters from $157 million to $169 million. Management expenses rose from $165 million for the year to June 2013 by to $2055 million in 2014, and in the latest quarter, from $88 million to $110 million
Assets down| Total assets totalling $7 billion at the end of June last year has seen a major fall to June this year to $4.3 billion mainly as result of amounts due from reinsurers and co-insurers and from policy holders declined back to normal levels. Equity stood at $1.55 billion and cash and short term investments stood at $2 billion.
If the company can maintain the current profit levels then earnings per share should reach 35 cents for the year which makes the stock now priced at $1.62 cents cheap, at a PE of only 4.6.