NASSAU, September 10, 2020 – Bahamas First Holdings Limited today released its unaudited consolidated financial results for the six months ended June 30, 2020, marking the half-year with net underwriting income of $15.2 million, a $2 million increase over the same period in the prior year.
The Company reported Comprehensive Income of $1.8 million or $0.05 per share. This compares with $2.1 million or $0.06 per share during the same period in 2019. A slight 1.7% decrease in Gross Written Premium over the prior year was offset by an improvement in claims experience.
The Company’s Cayman First subsidiary performed well during the period, contributing significantly towards the Company’s profit for the period. The Cayman Islands’ containment of the spread of COVID-19 meant that there was little impact on Cayman First’s health claims experience. Gross Written Premiums in the Cayman general insurance segment rose slightly over prior year.
Whilst The Bahamas has experienced some deterioration in its general insurance portfolio, the impact was offset by a 37% improvement in claims experience over prior year. Investment income in The Bahamas was suppressed by an investment loss of $1.1 million recorded in the first half of the year.
Total operating expenses were slightly higher than last year; a major factor contributing to this was the cost of currency conversion charges in relation to Hurricane Dorian claims. These non-recurring charges, which were approximately 15% of total expenses for the period, are expected to reduce in the coming quarters.
The Group’s Equity Attributable to Owners of the Group increased to $59.4 million, compared to $58.0 million at December 2019.
“The first half of 2020 presented many challenges which will continue to impact the Group for the rest of the year and into 2021,” said Board Chair Alison Treco. “However, we are fortunate to report that our performance figures to June 30, 2020 have held relatively steady compared to the comparative period in 2019. Whilst the future is unpredictable, we do expect to see a negative impact from the high unemployment levels and closure of businesses due to COVID-19, and we are making adjustments to minimize the potential adverse effects.”
Group President & CEO Patrick Ward added, “During these extraordinarily challenging times, I couldn’t be prouder of our employees, many of whom have transitioned seamlessly into a remote environment and remain committed to serving our customers and helping our company create value for our shareholders.”
