Colina Holdings reports $4.4M net income increase
Colina Holdings Bahamas Limited (CHBL) reported a $4.4 million increase in net income year-on-year for the first nine months of 2010, largely due to growth in investment performance.
Net investment income for the period increased by $7.8 million on the same period last year, though net premium revenue was essentially flat. The company also saw a 23.4% spike in administrative expenses compared to the same nine month period a year ago.
“Our investment assets yielded$24.6 million in net investment income compared to $16.8 million in the prior year due to improved returns on a larger invested asset base,”read a statement from the firm’s financial statement.
For the nine month period, total revenue was $112.5 million, net income was $13.4 million and earnings per ordinary share came in at $0.46, up from the first nine months of 2009 of $104.9 million in total revenue, $8.1 million in net income and $0.29 in earnings per ordinary share.
Although net premium income for the nine month period fell from $84.2 million to $84.1 million year-on-year, CHBL reported that gross premiums revenue for the period were higher but a one-time sale of a single premium annuity contract in 1999 resulted in the reduced net premium revenues.
General and administrative expenses saw an increase of $4.2 million, up from $18.1 million for the first nine months of 2009 to $22.3 million for the same period this year.
The increase in expenses, according to a report from the financial statement,”reflected expenditures related to improving benefits for our staff and operational expenditure to enhance policyholder services.”
The financial statement revealed that during the 3 months ended September 30, 2010, changes in provisions for future benefits, an expense, increased some $4 million from the same period the previous year, growing from $15.5 million to $19.6 million. Commission expense for the same three month period fell from $3.2 million last year to $2.7 million, representing a 17.8% decrease.
CHBL acts as a holding company for Colina Insurance Limited, which is registered to provide life and health insurance in The Bahamas, The Cayman Islands and the Turks and Caicos Islands. AM Best, a leading credit rating agency for the banking and insurance sectors rate Colina Imperial Insurance as A-(Excellent), with a “stable” outlook.