NASSAU, BAHAMAS – A leading insurer has indicated that global reinsurers are unlikely to expand their exposure in this region anytime soon, which suggests that reinsurance rates will remain elevated, with the company actively seeking alternative sources of capacity, particularly for storm coverage.
Alister I. McKellar, Managing Director of the BISX-listed insurance broker, stated in the company’s Q2 financial report: “Despite challenging market conditions, including rate increases and supply shortages, both segments of our business remained steady this quarter. Our Agency division recorded an 11 percent increase in net revenue from contracts with customers compared to last year, along with a moderate rise in other expenses ($389k, or 5.16 percent). This led to a 26.28 percent increase in net income for the segment.”
McKellar continued: “Our Underwriting division also performed well, posting $1.33 million in net income, driven by an $8.08 million (24 percent) increase in insurance revenue. These strong results, along with our ongoing efforts to manage expenses and accounts receivable, boosted the company’s earnings per share to $0.64, up from $0.48 in the same period last year—a 33 percent increase.”
He further noted: “We don’t anticipate global reinsurers increasing their exposure to our region soon, which likely means that elevated rates will persist. However, we are always exploring alternative avenues of capacity, especially for storm coverage. Let’s hope that a hurricane isn’t one of the visitors we welcome to our shores this season!”
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