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Leading Health Insurer Rebounding From 2020 Covid Fallout

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Terence Hilts

• Reports 2,000 percent net investment income increase

• Total company assets stand at over $807m

• Results reflect improved market conditions

By YOURI KEMP 

Tribune Business Reporter 

ykemp@tribunemedia.net 

A BISX health insurer disclosed that the company is rebounding from the 2020 COVID-19 fallout with a near 2,000 percent net investment income increase for the first six months of this year.  

Colina Holdings Bahamas, the parent company for Colina Insurance, in its Q2 results said: “The Company recorded net income attributable to ordinary shareholders of $9.9m or $0.40 per ordinary share.  This compares to the net income attributable to ordinary shareholders of $4.8m and $0.19 per ordinary share for the same six-month period in 2020. 

“The results through June 30, 2021 continue to reflect the improved market conditions, with the most notable impact reflected in net investment income for the six months ended June 30, 2021 totalling $21.6m compared to $1.1m for the same period in the prior year, representing an increase of $20.5m.    Premium revenues are up, totalling $64.5m for the first half of 2021, increasing by 6.3 percent over the prior year’s gross written premiums of $60.7m. 

The results also said: “The increases in net investment income and premium revenues resulted in revenues of $91.6m for the six months ended June 30, 2021 compared to $64.5m in the prior year. 

“During the period, the Company continued rebalancing its investment portfolio and facilitated some disposal of securities,” said Terence Hilts, Chairman of CHBL.   

“Proceeds from these sales are reflected in the increase in cash at mid-year, relative to the prior period,” said Mr Hilts.   

It was last year May where the company recorded that shareholders suffered a $2.3m net loss for the Q1 of 2020 and at that time blamed the reduction in value of its investment holdings, primarily securities, for a loss equivalent of $0.09 per share. It also suffered a 43.5 percent year-over-year revenue decline as the pandemic forced an economic shutdown during the quarter’s last two weeks. 

Mr Hilts added while putting 2020 firmly behind the company, “The Bahamas continues to navigate its way out of the pandemic, the prospects are promising which is reflected in CHBL’s financials.  

“The Company remains focused on efforts that will boost its balance sheet and capital position to provide CHBL with flexibility to continue to meet the needs of policyholders and customers within this evolving economic environment.”  

The report also said: “Total assets at June 30, 2021 were $807.9m with invested assets remaining the largest component of total assets, comprising 76.1 percent of total assets.   

“Shareholders’ equity as at June 30, 2021 totalled $182.5m and is net of dividend distributions to the Class ‘A’ preference shareholders for Q1 and Q2 totalling $1.2m and dividends to the ordinary shareholders of $4.0m or $0.16 per ordinary share.” 

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