May 3, 2024

General Accident Insurance Co. Ja. Ltd.(GENAC)

Audited financials for twelve months ended December 31, 2023:

General Accident Insurance Co. Ja. Ltd. (GENAC) for the twelve months ended December 31, 2023 reported a 29% increase in insurance revenue totaling $8.58 billion compared to $6.67 billion in the corresponding period last year. Insurance revenue for the fourth quarter had a 4% decrease to close at $1.73 billion compared to $1.67 billion for the comparable quarter of 2022.

Insurance Service Expenses amounted to $5.64 billion (2022: $4.15 billion), this represents an increase of 36% year over year.

Net expenses from reinsurance contracts held increased by 18% to $2.24 billion compared to $1.90 billion for the twelve months ended December 31, 2022.

Insurance service result increased by 12% to close at $696.11 million (2022: $619.23 million). For the quarter, Insurance service results amounted to $433.61 million (2022: $291.42 million).

Net investment income decreased by 22% from $436.41 million in 2022 to $340.80 million in the period under review.

Finance expense from reinsurance contracts held closed at $118.28 million versus an income of $26.82 million in 2022.

Net premium and investment result for the twelve months ended December 31, 2023, amounted to $939.43 million, a 13% decrease relative to $1.08 billion reported in 2022.

Other Income for the twelve months ended December 31, 2023, amounted to $287.57 million, a 49% increase relative to $192.82 million reported in 2023.

Other Operating Expenses totalled $486.50 million a 27% increase from the corresponding period last year. (2022: $383.96 million).

Profit before taxation for the twelve months ended December 31, 2023, amounted to $740.50 million, a 17% decrease relative to $891.33 million reported in 2022. Profit before taxation for the fourth quarter amounted to $421.60 million (2022: $535.72 million).

Taxation for the twelve months ended December 31, 2023, had a 73% increase to reach $192.23 million (2022: $110.94 million). As such, Net Profit for the twelve months amounted to $548.27 million, a 30% decrease from the $780.39 million reported in 2022. For the fourth quarter, Net Profit was $293.91 million (2023: $502.06 million).

Net profit attributable to shareholders for the twelve months ended December 31, 2023, amounted to $540.18 million, a 26% decrease relative to the $730.74 million booked in 2022.

Total Comprehensive Income for the period totalled $546.38 million, relative to the $742.02 million reported twelve months prior.

Consequently, Earnings Per Share for the twelve months amounted to $0.52 (2022: EPS: $0.71). The number of shares used in these calculations was 1,031,250,000.

Notably, GENAC’s stock price closed the trading period on May 03, 2023 at a price of $6.13 with a corresponding P/E ratio of 12.47x.

Balance Sheet Highlights

The company’s assets totalled $9.82 billion (2022: $9.02 billion). ‘Cash and Short-Term investments’ increased 37% to reach $1.08 Billion (2022: $786.30 million), while ‘Other Receivables’ increased by 33% to $1.36 billion (2022: $1.022 billion), therefore attributing to the increase in the company’s asset allocation.

Shareholder’s equity was $3.64 billion (2023: $3.31 billion), representing a book value per share of $3.53 (2023: $3.21).

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