Bahamas First Holdings Limited realized revenue growth of $3.4 million in its first quarter of 2021, compared to last year’s first quarter, though the company was hit by an increase in claims, decreasing net underwriting income by 13.6 percent year-on-year, Bahamas First revealed in a press statement.
The company’s results continue to be tempered by the COVID-19 pandemic despite the improved top-line revenue results, positive property and casualty (P&C) insurance claims experiences and a rising share price, according to the statement.
Group President and Chief Executive Officer Patrick Ward said in the statement that both the Cayman Islands and Bahamas operations showed operations improvements in the first quarter, compared to 2020.
“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 Ward.
According to Bahamas First, gross written premiums grew by $3.4 million to $43.0 million in the first quarter of this year, compared to $39.6 million in the first quarter of 2020.
“However, this was offset by higher claims, resulting in net underwriting income of $6.2 million, a decrease of 13.6 percent when compared to $7.2 million in the first quarter of 2020,” the statement noted.
“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 the first quarter of 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.”
Ward said the first quarter results are in line with the company’s expectations, though its investment earnings and health account in the Cayman Islands did not meet the mark.
“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,” said Ward.
“The P&C claims experience across both territories showed double-digit positive variances compared to the prior year.”
The statement explained that investment income in The Bahamas was suppressed by an unrealized loss of $1.9 million to date, while the Cayman Islands’ investment portfolio recorded an unrealized loss of $0.1 million.
According to the Bahamas First, the company recognized material savings related to bank charges and bad debt expenses and was able to realize a decrease in its expenses by 10.4 percent.
Ward said the company is releasing digital offerings to make it easier for clients to acquire services from the company.
“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,” said Ward.
The post Bahamas First improves revenue results in first quarter appeared first on The Nassau Guardian.
source https://thenassauguardian.com/bahamas-first-improves-revenue-results-in-first-quarter/
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