A decrease in vehicular accidents – thanks to the COVID-19 emergency measures that kept people home for longer hours – and the absence of a devastating hurricane all contributed to Bahamas First Holdings Limited’s $6.6 million in comprehensive income for the first three quarters of 2020, versus a loss of $5 million in the same review period last year, revealed a statement from the company, adding that as of the end of September 2020 about 97 percent of Hurricane Dorian claims had been settled.
The company’s unaudited consolidated financial results for the nine months ended September 30, 2020 revealed a positive performance despite ongoing challenges impacting both The Bahamas and the Cayman Islands – the jurisdictions in which the group operates.
“Total comprehensive income attributable to owners of the group to September 30, 2020 was $6.6 million, compared to a loss of $5 million during the same period in 2019 incurred due to the impact of Hurricane Dorian,” the statement noted.
Bahamas First Holdings Ltd. Chairperson Alison Treco said in the statement that seasonal fluctuations in property and casualty business in the second half of 2020 had a positive impact on performance. She warned though that the COVID-19 pandemic has and will continue to challenge premium collections, due to slowdowns in businesses operations.
“This, combined with the absence of a catastrophe in the period and the additional benefit of a lower-than-normal level of claims, contributed to the significantly improved result compared to the prior year,” said Treco.
“It is evident that the balance of 2020 will continue to see restrictions on business operations in order to combat the spread of the virus.
“Ultimately, this will present challenges to premium collection and has already adversely impacted our equity investments. We are focused on the challenges presented and will seek to mitigate the potentially adverse effects on the group’s performance.”
Bahamas First Holdings Ltd. Group President and Chief Executive Officer Patrick Ward said in the statement that the financial results reflect the company’s resilience and strong execution.
“Throughout this pandemic, our staff have remained focused on our customers and our communities and I am confident in the long-term value we will create for our stakeholders during the remainder the year and beyond,” said Ward.
According to the statement, net underwriting income for the company increased to $27.6 million for the period ended September 30, 2020, compared to $14.3 million year-on-year, which the company said is due to a 43.1 percent improvement in claims experience as a result of a reduction in vehicular accidents and the absence of a major climactic event.
The statement noted that the Cayman Islands’ quick containment of COVID-19 meant the impact to the country’s heath claims was minimum. The company’s Cayman First subsidiary contributed $1.8 million to profit for the first three quarters.
According to the company, investment income in The Bahamas was “suppressed by an unrealized loss of $2.3 million recorded to date”.
“Total operating expenses increased by 2.7 percent over the prior year, due in large part to the cost of currency conversion charges in relation to Hurricane Dorian claims,” the statement pointed out.
“Equity attributable to owners of the group increased to $64.3 million, compared to $58 million at December 2019,” the statement further noted.
The post Bahamas First Holdings reports $6.6 mil. in comprehensive income appeared first on The Nassau Guardian.
source https://thenassauguardian.com/bahamas-first-holdings-reports-6-6-mil-in-comprehensive-income/
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