NASSAU, BAHAMAS — Family Guardian’s president said decline in medical claims due to a decrease in utilization because of COVID-19 restrictions, along with the strategic responses by management to control operating expenses, helped offset the pandemic’s impact on the company’s 2020 financial performance.
The Bahamas International Securities Exchange (BISX)-listed insurer recorded a 34 percent improvement in its net income. Its president, Glen Ritchie, said the performance was noteworthy considering the dramatic impact of COVID-19 on the economy.
The company’s financial year, which ended December 31, 2020, saw the group record a net income of $10.8 million, a $2.8 million increase over the prior year. Gross premiums increased to $111.4 million, a $673,000 gain over 2019. Investment assets increased by $27.9 million, representing an 11 percent improvement over 2019.
Ritchie said: “The pandemic’s impact on our financial results was reflected in losses on our investment portfolios, limitations on new business sales and additional bad debt provisions from increased credit risk exposure.
“However, these factors were offset by a decline in medical claims due to a decrease in utilization because of the COVID-19 restrictions, along with the strategic responses by management to control operating expenses and mitigate additional threats brought on by the pandemic.
“During the year, we were successful in realizing new investment opportunities that have bolstered our solvency ratios and further reinforced the company’s brand.”
According to Ritchie, confidence in the company is further demonstrated with the consistent increase in its share price as reported by the BISX, growing by 40 percent over the past three years.
“The strategic decision to sell the portfolios of our wealth management subsidiaries in 2019 allowed us to focus on the further development and enhancements of our core insurance business,” Ritchie noted.
“This focus proved especially beneficial as we navigated the unprecedented challenges caused by the pandemic. The impact of COVID-19 required us to adapt quickly to a new business environment to protect the safety and security of our staff while ensuring uninterrupted service to our clients.
“Our commitment to these objectives was paramount in all areas of the group’s operations during 2020. Our enterprise risk management framework and disaster recovery infrastructure allowed us to work remotely in a very stable and secure environment, and the successful execution of our business continuity plans allowed over 90 percent of our staff to work from home.”
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