By NEIL HARTNELL
Tribune Business Editor
HURRICANE activity slashed J. S. Johnson's profits by 40.4 per cent net for the nine months to end-September 2017, with its underwriting affiliate suffering a $2.58 million 'swing'.
The BISX-listed insurance broker and agent told shareholders that its financial performance continued to be impacted by the lingering effects of Hurricane Matthew almost one year after the Category Three/Four storm passed through New Providence and Grand Bahama.
Alister McKellar, J. S. Johnson's managing director, added that its Insurance Company of the Bahamas (ICB) affiliate "continued to experience financial pressure" as a result of Hurricane Irma's passage in September 2017.
"The decline in net income from a high last year of $2.332 million to a loss of $436,008 this quarter was a direct result of claims recorded to-date from the storm," Mr McKellar wrote of ICB. "Year-on-year this was up $1.383 million. "The continued run-off from Hurricane Matthew, coupled with the unwelcome arrival of Hurricane Irma in early September, dampened our expectations for a stronger result in 2017. Thankfully, Irma's track turned away from New Providence, but both the northern and southern Bahamas and Turks & Caicos Islands were not as fortunate.
"Total income declined by 8 per cent from $18.512 million to $16.997 million, with the biggest reduction being in net commissions and fees. Similar to last quarter, net income fell from $6.255 million to $3.723 million, a 40 per cent decline, with the latest hurricane being a major contributor," he continued.
"On a more positive note, our agents and brokers arm has performed well this quarter, with net income rising from $3.923 million to $4.159 million. This increase is a direct result of management's ongoing efforts to contain costs and offset the drop in total income.
"As a result, our expenses declined 6 per cent from $10.253 million to $9.643 million, which helped soften the impact from recent events."