JIIC bounces back
Bouncing back from a loss, Jamaica International Insurance Company (JIIC) has reported underwriting profit of $43 million at yearend December 2011.
JIIC made an underwriting loss of J$154 million in 2010, and was punished by rating agency A.M. Best which revised its outlook for JIIC to negative from stable last September.
The company, however, was credited with a good financial strength, favourable capitalisation and the financial flexibility as a result of the support and commitment of its parent.
JIIC's gross premiums written fell in 2011 to J$3.8 billion, a decline of 13.6 per cent from the J$4.4 billion reported in 2010. But net premiums earned came out at $1.97 billion, up from J$1.7 billion.
Similarly, commission income also reflected an increase to J$328.9 million, compared to J$264 million in 2010.
But while commission and underwriting expenses grew, the company managed to keep claim expenses down, leading to a near doubling of bottom line profit of J$141 million, compared to J$78 million the previous year.
JIIC sells motor, property, and liability insurance products to the market, capturing at least 16 per cent of the general market at the end of 2010, through a network of branches in four parishes, and partnerships with 24 brokers and agents nationwide.
With that market share, the company was ranked the second-largest general insurer in the industry.
JIIC ended 2011 with assets of J$6.5 billion, a slight decline year on year.
Its minimum capital test ratio stood at 252 per cent, which is above the threshold required by the regulator.