FOR IMMEDIATE RELEASE
NASSAU, 18 May 2021 – Bahamas First Holdings Limited, the diversified group of companies providing insurance and related services in The Bahamas and the Cayman Islands, today announced unaudited consolidated financial results for the three months ended 31 March 2021. The company reported overall results tempered by the ongoing impact of the COVID-19 pandemic despite increased revenue, positive P&C claims experience across operating territories, and a rising share price.
“While the social and economic developments in the region continue to be dominated by COVID-19, we seem to be in a much better place in both Cayman and The Bahamas, and this is reflected in the top line and technical performance of the Company for the period under review,” said Group President & CEO Patrick G. Ward.
Top line revenue growth was strong, with Gross Written Premiums rising by $3.4 million to $43.0 million in Q1-2021, compared to $39.6 million in the prior fiscal first quarter. However, this was offset by higher claims, resulting in Net Underwriting Income of $6.2 million, a decrease of 13.6% when compared to $7.2 million in the first quarter of 2020. Similarly, the company reported a Comprehensive Loss Attributable to Owners of the Group of $1.3 million, compared to a loss $0.9 million for the same period in 2020.
The company’s share price continues to see significant gains in recent months, listing at $2.90 per share at the end of Q1-2021. Meanwhile, the company’s capital base reflected a decrease of Total Equity at $63.1 million, a decrease of $1.4 million from the end of December 2020.
“The Q1-2021 results of the Group are very much in line with our expectations, apart from the notable exception of investment earnings and the underperformance of the Health Account in Cayman,” said Ward. “The main factors impacting the Health account are related to the increased frequency and severity of claims, brought on by the pent-up demand for services which was unleashed as restrictions on access were removed. The P&C claims experience across both territories showed double-digit positive variances compared to prior year.”
Investment income in The Bahamas was suppressed by an Unrealized Loss of $1.9 million recorded to date. Cayman’s investment portfolio registered an Unrealized Loss of $0.1m.
The company was able to decrease its expenses by 10.4% compared the same period in 2020, with the most material savings relating to bank charges and bad debt expense.
Ward reported that the company is continuing its investment in the customer experience in line with the projected economic growth of both The Bahamas and the Cayman Islands. “The Group is preparing to launch a series of digital offerings in the coming months that we are confident will simplify the process of purchasing our products and provide our customers more flexible diverse options for interacting with us,” he said.
