Caribbean Assurance Brokers Limited sees bottom-line recovery

• Caribbean Assurance Brokers Limited (CAB) reported a net profit of JMD $1.81Mn for its first quarter ended March 31, 2022, which represents a significant improvement from the net loss of JMD$7.88Mn in the prior period last year. 
• This performance mainly resulted from a 20.7% and 17.3% increase in revenue and other income. This revenue outturn was mainly attributable to growth in its international insurance division, specifically, its Individual Life Division which saw an increase of 33.0%. Furthermore, the company would have seen a reduction in its finance cost of 27.6% as it paid down its existing mortgage loan. 
• The improvements in income outweighed the 3.7% and 19.4% increase in administrative and selling expenses. The growth in total expenses included professional fees, audit fees, repairs and maintenance, as well as staff-related costs. 
• Going forward, management expects that the company’s performance will improve supported by the economy reverting to some level of normalcy, and its implementation of new sales processes and the addition of new talent in preparation for continued growth in demand. 
• CAB’s stock price has increased by 10.05% since the start of the calendar year. The stock closed Monday’s trading session at $2.50 and currently trades at a P/E of 9.3x which is below the Junior Market Financial Sector Average of 12.3x. 

Sources: JSE & NCBCM Research)