Colina Holdings Bahamas Limited (CHBL) has released its unaudited consolidated interim financial results for the period ended March 31, 2020.
The company recorded a net loss attributable to ordinary shareholders of $2.3 million or $0.09 per ordinary share. This compares to net income attributable to ordinary shareholders of $2.6 million and $0.10 per ordinary share for the same period in 2019. The company’s results were largely impacted by mark-to-market price adjustments on its investment securities.
These mark-to-market revaluation losses were reflected in the first quarter’s (Q1) net investment income, which totalled a net investment loss of $7.2 million compared to a net investment income gain of $10.6 million in the prior year.
“The company ensures that as part of its long-term strategy, that it maintains a strong capital base to withstand these interim periods of price volatility,” said Terence Hilts, chairman of CHBL.
Total revenues for the first quarter were down $19.9 million, totalling $25.8 million for the three months ended March 31, 2020 compared to total revenues of $45.7 million for the same period last year.
Net premium revenues for the first quarter of 2020 totalled $28.1 million, compared to the prior year period of $30.1 million. Net policyholder benefits increased by $0.9 million to $25.2 million for the first three months of 2020, compared to $24.2 million in the prior year.
Offsetting the impact of the negative investment returns is a release of provisions for future policyholder benefits totalling $8.9 million, compared to an increase in reserves for the first quarter of 2019 totalling $5.3 million.
The mark-to-market adjustments reflected in the income statement and revaluation reserve have affected the investment securities balance at March 31, 2020 which totals $420.9 million, a decrease from $445.8 million at December 31, 2019. Total assets at March 31, 2020 were $779.9 million, with invested assets remaining the largest component of total assets, comprising 76.3 percent of total assets.
The board of directors has approved the Class “A” preference shareholder dividend distribution, which totals $0.6 million in respect of the first quarter of 2020.
“Overall, we are pleased that the company continues to have the strong balance sheet to weather periodic income statement volatility and we remain focused on ensuring that the company’s capital base remains with sufficient margins to provide CHBL the flexibility it needs to continue to meet its obligations to its policyholders and customers within this challenging economic environment,” said Hilts.
Colina Holdings Bahamas Limited is a holding company incorporated in 1993. CHBL subsidiaries provide financial services solutions through the production, distribution and administration of insurance and investment products. CHBL’s subsidiaries include Colina Insurance Limited, Colina General Insurance Agency & Brokers Limited and Colina Financial Advisors Ltd.