Jun 2004 Financial News

GHL, Sagicor acquisition target boasts record profits

Jun 23, 2004

THE Insurance Corporation of Barbados Limited (ICBL) has recorded its best ever profits.
Results published over the weekend revealed that the ICBL recorded gross premium income of $67.2 million in 2003, following the $65.6 million the previous year.

Net income for the year ended December 31, 2003, was $9.3 million, compared to $7.8 million in 2002. The company’s assets were $168.6 million at the end of 2003, up from $144.2 million in 2002, and the share price was $3.95 at the close of business on the Barbados Stock Exchange last week.

“I think they are excellent results,” Greaves told Business Monday while commenting on the performance of the company which offers a wide range of general insurance services that include motor, property and marine insurance.

The ICBL official said that the motor results in Barbados had changed substantially over the last few years. “So that essentially most of the large companies which are well run, made a profit on motor in Barbados and we felt that our time would come as well,” Greaves said.

He noted that for many years the ICBL had gone the route of ensuring that the corporation’s reserves were adequate. Ensuring therefore that those reserves were adequate resulted in increases in our IB&R, he pointed out.

IB&R means claims incurred but not yet reported.

“We felt too that the kind of risk management changes placed in respect of other accounts, namely, the property and liability classes, and that with fewer events occurring, that profits would have been likely,” the ICBL head outlined.

However, he acknow-ledged that the market is changing given that property insurance rates are falling. This will be a major challenge for us in 2004,” the Managing Director said.

Source: http://www.barbadosadvocate.com/NewViewNewsleft.cfm?Record=17974