|CHBL records $6.9M in net income|
Guardian Business Editor
Published: Aug 20, 2012
Increased premium income and decreased policyholder benefits were strong factors behind a notable spike in total net income at Colina Holdings Bahamas Limited (CHBL) for the first six months of this year.
According to the BISX-listed company's latest figures, total net income grew to $6.9 million from January until the end of June, equivalent to $0.22 per ordinary share. That compares with $1.6 million total income and $0.02 per ordinary share during the same period in 2011.
Melanie Hutcheson, corporate communications officer at Colina Insurance Limited, attributed higher premium income and lower policyholder benefits as key drivers.
"Comparatively, results for the second quarter of 2011 were notably impacted by a reduction in the Bahamian dollar rate, which required long-term insurers like Colina to increase its actuarial reserves to support future benefits," she told Guardian Business. "We were in the unique position to provide fully for this extraordinary change in actuarial reserves in the second quarter, which resulted in reduced net income and investment warnings at the close of the first half of 2011."
However, the company was able to achieve profitability for the third and fourth quarters of 2011, she added.
For the period ending June 2012, CHBL, the parent company of Colina Insurance Limited, further reported total assets of $569.4 million and total equity of $122.7 million.
As noted by Hutcheson, investment earnings were impacted by the Bahamian dollar prime rate reduction. Net investment income came in at $14.2 million, compared to $14.8 million for the same period last year.
Meanwhile, general and administrative expenses have increased so far this year, a trend seen nearly across the board for businesses in The Bahamas. That segment represented 21.7 percent of total revenues, rising 1.3 percent. CHBL attributed this increase to an investment in both technology and personnel, with savings expected over the long term.
"We are pleased to record another profitable quarter for CHBL, and to mark the half-year with continued positive growth in key financial indicators including net income, shareholder equity and asset growth," said Terence Hilts, the chairman of CHBL. "Despite a challenging economic environment, our solid capital position, high quality of investments and disciplined operational capabilities remain a source of competitive advantage and we continue to see improved financial results."