NASSAU, BAHAMAS — Bahamas First Holdings Limited yesterday said strong top-line revenue growth for its first quarter was offset by higher claims, resulting in a nearly 14 percent decrease in net underwriting income.
The group, which provides insurance and related services in The Bahamas and the Cayman Islands, yesterday announced its unaudited consolidated financial results for the three months ended March 31, 2021.
Group President & CEO Patrick Ward said: “While the social and economic developments in the region continue to be dominated by COVID-19, we seem to be in a much better place in both Cayman and The Bahamas, and this is reflected in the top line and technical performance of the company for the period under review.”
The group reported that top-line revenue growth was strong, with gross written premiums rising by $3.4 million to $43 million in Q1 of 2021, compared to $39.6 million in the prior fiscal first quarter. This, however, was offset by higher claims, resulting in net underwriting income of $6.2 million, a decrease of 13.6 percent when compared to $7.2 million in the first quarter of 2020.
Similarly, the company reported a comprehensive loss attributable to owners of the group of $1.3 million, compared to a loss of $0.9 million for the same period in 2020.
The company also reported that its share price continues to see significant gains in recent months, listing at $2.90 per share at the end of Q1 2021.
Meanwhile, the company’s capital base reflected a decrease of total equity of $63.1 million, a decrease of $1.4 million from the end of December 2020.
Ward said: “The Q1 2021 results of the group are very much in line with our expectations, apart from the notable exception of investment earnings and the underperformance of the health account in Cayman.
“The main factors impacting the health account are related to the increased frequency and severity of claims, brought on by the pent-up demand for services which was unleashed as restrictions on access were removed. The P&C claims experience across both territories showed double-digit positive variances compared to the prior year.”
Investment income in The Bahamas was suppressed by an unrealized loss of $1.9 million recorded to date. Cayman’s investment portfolio registered an unrealized loss of $0.1 million.
The company was able to decrease its expenses by 10.4 percent compared to the same period in 2020, with the most material savings relating to bank charges and bad debt expense.
Ward reported that the company is continuing its investment in customer experience, in line with the projected economic growth of both The Bahamas and the Cayman Islands.
“The group is preparing to launch a series of digital offerings in the coming months that we are confident will simplify the process of purchasing our products and provide our customers more flexible, diverse options for interacting with us,” he said.
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