Caribbean Assurance looking to rebound in second half of 2024
Published:Friday | July 26, 2024 | 12:08 AM
After registering an increase in net profit of 58 per cent in 2023, Caribbean Assurance Brokers Limited suffered a loss of $12.1 million in the first half of 2024, a setback which the company attributes to spending that’s meant to fuel future growth.
The insurance brokerage, which was listed on the junior market of the Jamaica Stock Exchange in 2020 under the symbol CABROKERS, points to a strong capital-to-assets ratio and significant investments in staff and technology as reasons for its positive outlook.
“At the end of 2023, the directors, out of their strategic retreat, felt there was a need to significantly grow the organisation,” Caribbean Assurance director Barrington Whyte said at the company’s annual general meeting on Wednesday.
“Significant investments were made in technology to eventually lower cost, and in staff and infrastructure to continue our product diversification strategy to increase revenue, market share and resilience. We also felt it important to ensure significant improvements in our risk management and compliance framework,” Whyte said.
In the financial year ended December 2023, Caribbean Assurance posted revenue of $501.8 million, up seven per cent over 2022. Net profit for the year was $123.4 million, an increase of 58 per cent.
The $12.1-million loss in the first half of 2024 was registered despite an increase in income of $72 million during the period. At the same time, operating expenses jumped from $194 million in HY2022 to $297 million in HY2023.
But Sheraley Bridgeman, who was hired as CEO in January, says the investments in human resources and technology are part of the overall plan.
“The vision is to transfer CAB into a company that is client-centric, innovative, technology-enabled, an employer of choice, and is the number one broker of choice in the Caribbean and Latin American region,” she said.
Whyte said Caribbean Assurance’s capital-to-asset ratio was over 50 per cent, unlike most financial institutions, whose ratios are around 15 to 20 per cent.
“We do not have in our portfolio risk-bearing assets that will undermine our capital base,” he said.
“We expect that in the third and fourth quarters of 2024, we will see tremendous improvement in the bottom-line results. We are confident of that,” Whyte added.
Bridgeman said the initiatives incorporate the restructuring of the company’s management team, including the addition of a chief operating officer, a sales coach and business development manager, expansion of the sales force, and the establishment of a new branch at the Courtleigh Corporate Centre in New Kingston.
Founded in 2005, Caribbean Assurance is a multi-line insurance brokerage, with a staff complement that Bridgeman said increased from 96 to 103 over the past year.