J.S. Johnson’s improved second quarter results ending June 30 are indicative of an uptick in economic activity, the company’s Managing Director Alister McKellar said in his managing director’s review, adding that the company has experienced a decrease in claims so far this year.
McKellar explained that J.S. Johnson saw an increase in net income, from $2,377,684 last year to $3,679,402 this year.
“This 55 percent growth is reassuring and indicative among other things of an uptick in economic activity,” he said.
“A review of our segment information reveals that both of our
divisions enjoyed profitability gains this year. Agency profitability is up $393,957 as an 11 percent increase in other expenses was surpassed by a 12 percent rise in net revenue from contracts with customers.”
Mckellars’ review also revealed that the company’s underwriting result returned from a loss of $1,266 last year, to a profit of $906,495.
“There were many contributing factors to this impressive performance. Insurance expenses decreased over 40 percent largely due to a lower claims experience this year,” he said.
“Moreover, losses on our investment portfolio were much lower at $26,921 as compared to $442,564 in the prior year.”
The company is celebrating its hundred-year anniversary this year.
Managing Director of NUA Insurance Agents & Brokers and Chairman of the Bahamas Insurance Association Warren Rolle said in mid-June that Bahamians seemed to still be economically challenged and are still opting out of purchasing insurance policies for their homes, despite this country’s high risk of hurricanes.
He also warned that those who are insured have to ensure that their homes are not underinsured.
He added that the government’s removal of value-added tax from insurance premiums has not translated into more insurance business.