ICBL’s steady comeback

The financial position of the Insurance Corporation of Barbados Ltd (ICBL) is going in a positive direction as the insurance provider published its latest consolidated financial statements for the half year ending June 30. The company’s executive chairman Joe Poulin described the 2021 result so far as “strong”. He touted the insurer’s net income, which stood at $7.3 million, and that performance represented a significant improvement
from the $1.5 million net loss registered for the comparable period last year.

“The economic and market conditions remain challenging as the impact of COVID-19 continues to affect all aspects of business within Barbados,” the Canadian businessman told shareholders. He pointed out, however: “Notwithstanding this, the company has been able to make strides through a focused approach on responsible underwriting and reinsurance programmes.”

In the summary consolidated statement of income, ICBL reported total income of $43.77 million, up from $38.09 million for the half-year in 2020. On the other hand, the former state-owned entity managed to reduce its expenditure, taking total benefits and expenses down from $39.58 million in 2020 to $36.42 million this year.

“Gross written premiums are in line with the corresponding period to June 30, 2020, and investment income has shown significant growth to reach $4.8 million, driven by an increase in value of the underlying assets. Claims and benefits expense remain below the prior year, and operating costs are eight per cent below our prior year position,” the board chairman reported.

Poulin noted further: “This has resulted in the growth of earnings per share to $0.18. The company remains very well capitalized with shareholders’ equity of $118.2 million and cash and cash equivalents of $54.6 million at June 30, 2021.”

After acquiring controlling interest in ICBL in 2005 from Government for US$26 million, BF&M out of Bermuda, confirmed in September 2020 that it had sold its majority 51 per cent interest in the company to Paynes Bay Finance which is owned by Poulin.

BF&M chairman John Wight said at the time of the sale: “The BF&M Group has decided that by moving forward with our remaining wholly-owned, cross- jurisdictional subsidiaries, we are better positioned to execute on our long-term strategy. With ICBL’s management and staff, and PBF as the new majority shareholder, the company is in great hands.” (IMC1)