By NEIL HARTNELL
Tribune Business Editor
Colina Insurance is set to launch a new individual life “product suite” during the 2013 first half, in a bid to “boost sales volumes” after the segment’s net income contribution dropped 75 per cent in 2012.
The annual report for the life and health underwriter’s operating parent, BISX-listed Colina Holdings (Bahamas), disclosed that the life insurance segment’s bottom line contribution dropped from $6.4 million to $1.6 million year-over-year in 2012.
Colina Insurance said the drop resulted from “increased claims experience inclusive of policyholder reserve adjustments”.
Revenues, though, increased by 0.3 per cent to $81.8 million, compared to $81.6 million in 2011, whole net premiums in the life division dropped slightly - from $55.5 million to $54.7 million.
“Net settled individual life sales volumes increased over prior year’s volumes by over 46 per cent,” Colina said. “The impact of the improved net settled volumes were only partially included in 2012 net premiums as a result of timing differences. However, these positive sales trends will contribute positively to the division’s profitability.”
Net investment income in Colina Insurance’s life insurance division rose by 4.2 per cent year-over-year to $26.6 million, compared to $25.5 million the year before, as fixed income funds were diverted to government bonds and quasi-governmental offerings.
Colina Insurance’s health division made the biggest contribution to the company’s 2012 bottom line, its net income soaring from $0.7 million in 2011 to $10.2 million.
There was “a significant increase” in individual health insurance policies, and combined with premium rate adjustments for inflation and prior claims experience, net premiums for the division rose by 8.2 per cent to $52.4 million, compared to $48.4 million in 2011.
Policyholder benefits, meanwhile, dropped from $37.9 million to $31.3 million. Group health business retention rose to 96 per cent from 90 per cent year-over-year.
Elsewhere, Colina Insurance’s newly-acquired affiliate, Colina General Insurance Agency & Brokers, saw commissions earned increase by 9.6 per cent during 2012 - its first year under new control.
“General and administrative expenses were significantly reduced by improved management of receivables and streamlining of expenses,” Colina Insurance said of the agency.
“The increase in revenues, combined with the reduction in expenses, resulted in Colina General contributing $0.5 million of profits for the company.”
Elsewhere, Terry Hilts, Colina Insurance’s chairman, said the company’s Board had approved the payment of preference share dividends as they became due for the 2013 second quarter, too.
An ordinary shareholder dividend of $0.14 per share has also been approved for investors of record as at April 30,2013.