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Globe loses revenue but grows profit

Published:Wednesday | March 28, 2012 | 12:00 AM

Globe Insurance Company saw a marginal decline in its insurance business last year, its newly released financial report shows.

The company reported a J$100 million decline in gross premiums, from J$2.5 billion to J$2.4 billion.

Net premium income also dropped, by seven per cent, to J$867 million from J$935 million recorded for 2010.

Globe whose main business line is property insurance also underwrites other classes of business such as motor, engineering and liability insurance across the island.

The company reported healthier profits, due to a substantial decline in claims from J$566 million to J$322 million, as well as a tripling of net commission income.

Underwriting profit grew eight-fold to J$287 million, while net profit improved by 47 per cent, from J$304 million to J$448 million.

In 2010, Globe was the fourth largest general insurer, measured by gross premiums, in a market then estimated at J$25.87 billion. Globe's share was 10 per cent; Advantage General was market leader with 19 per cent; JIIC 16 per cent; and NEM Jamaica 11 per cent.

The 2011 industry statistics are not yet collated, however at half-year, gross premiums amounted to J$14.6 billion.