Higher Expenses Weigh on GENAC’s Bottom Line

• General Accident Insurance Company Jamaica Limited reported a 4.0% (or $5.47Mn) decline in net profit attributable to shareholders to $129.91Mn (EPS: 11¢) in for the six months ended June 30, 2020.  
• Despite a 37.1% ($366.37Mn) increase in net premiums earned, the unfavorable outturn was largely due to a material rise in expenses, including a 40.2% (or $254.47Mn) increase in claims expense and a 36.1% (or $151.41Mn) rise in management expenses.
• Management noted that GENAC has been impacted by COVID-19 and that the full impact of the virus on the business remains uncertain.
• The stock has fallen by 8.7% since the start of the year, closing Tuesday’s trading session at $6.48. At this price, the stock currently trades at a P/E of 12.5x earnings, which is below the Junior Market Financial Sector Average of 36.6x.

(Source: GENAC Financials)