NASSAU, BAHAMAS — Despite the continued effects of the COVID-19 pandemic, the FamGuard Group reported a nearly four percent growth in revenue in its first quarter.
FamGuard Chairman Norbert Boissiere, in a message to shareholders on the group’s unaudited results for the three months ended March 31, 2021, noted that despite the continual effects of the COVID-19 pandemic, the FamGuard Group recorded profits of $5.1 million, representing $0.51 per share for common shareholders.
“The group recorded revenues totaling $34.1 million, an increase of 3.8 percent over the $32.9 million recorded in March 2020. Revenue growth was driven primarily by an increase in gross premium income of 3.6 percent or $1 million,” noted Boissiere.
“Deposits on select life products and annuity deposits totaled $3.7 million for the quarter, exceeding plan, despite the lingering effects of the pandemic. Investment income contributed $3.7 million to total revenue during the quarter, a 20.9 percent increase over the prior period.”
He further noted policyholder benefits totaled $19.1 million compared to $22 million for the corresponding prior period due to a decline in the utilization of medical services.
“We anticipate that claims utilization will gradually increase as we progress throughout the year,” he added.
“Total expenses, including commissions paid to agents and brokers, exceeded the prior year amount by 8.6 percent, mainly due to an increase in provision for bad debt on premiums receivables and the loan portfolio in line with the increased credit risk as we continue through the economic impacts of the pandemic.”
Boissiere also noted the group’s statement of financial position remains strong with total assets in excess of $370 million, of which investment assets comprised $298 million, representing 80 percent of the group’s total asset base.
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