J.S. Johnson reported in its 2019 fourth quarter report that it suffered a net loss of $105,000 from its underwriting division because of Hurricane Dorian, explaining that the insurer was fortunate to suffer such a small net loss.
“Given the scale of Dorian, we are fortunate to have only suffered a net loss of $105,787 in our underwriting division,” the company states in its report.
“This accomplishment speaks volumes of the quality and financial strength of our reinsurance program, which stood behind the more than $220 million of gross claims recorded by ICB (Insurance Commission of The Bahamas).”
The report notes that despite the losses suffered in underwriting, the company posted a profit of $1.45 million, 13 percent over the same time last year and “its highest growth in several years, spurred on by the continued economic recovery throughout the majority of our islands”.
“This trend is expected to continue into 2020 with the inflow of foreign exchange and investment. Despite expenses increasing 11 percent, overall profitability rose 17 percent from $5,610,511 to $6,546,093.
“After the first quiet hurricane season in four years, 2019 was one that will never be forgotten in The Bahamas. Hurricane Dorian arrived on September 1, 2019 with maximum sustained wind speeds of 185 mph and gusting much stronger (tying the highest ever recorded at landfall). While New Providence was thankfully spared the wrath of this monster storm, the Abacos and Grand Bahama were devastated, leaving billions of dollars in property damage and significant loss of life. The Bahamian insurance industry has collectively reassured the business and private communities of our dedication and commitment to restoring our Bahama land.”
The company celebrated its 100-year anniversary last year and celebrated its first branch event in Abaco in April, “with Freeport and others in the months that followed”.
Managing Director Alister McKellar said in the report: “I wish to thank all our stakeholders, past and present for playing such an integral part in this milestone achievement. It is our driving force to continue to provide peace of mind to those affected during these difficult times.”