More annual reports from Generac Holdings Inc:
2023 ReportGeneral Accident offers products that help our customers to manage risk and exposure. ABOUT US Our Purpose We are a well-established general insurance company offering a wide range of innovative, affordable risk transfer solutions. Through these products, we provide financial protection and peace of mind to individuals, families and businesses and play a vital part in building a thriving national economy. General Accident strives to deliver quality service to our customers and in so doing deliver sustainable profits to our shareholders. We are committed to good corporate citizenship and the support and development of our employees. How We Measure Our Performance We track our progress by using a variety of financial and non-financial key performance indicators led by our Business Intelligence Unit, which guides and monitors our response to the changing regulatory and operating environment. Our Annual Report is presented in two parts: 1. Our Strategic Report Our Strategic Report provides details about us, our business model and how we create value for our stakeholders. It also includes market and key performance indicators, as well as our approach to sustainable risk management. 2. Governance and Financial Report The Corporate Governance and Financial Report contains corporate governance information, committee reports, risk mitigation procedures and our Audited Financial Statements and Notes. Our Location We are headquartered at 58 Half-Way Tree Road, Kingston 10, Jamaica. We also service clients island-wide through an extensive network of professional insurance brokers, agents and branch at Unit #8 Summit Business Centre, Fairview, Montego Bay. Online Information Additional information about us may be found online at www. genac.com. Our full Financial Report and Annual Report may be viewed on our website. TABLE OF CONTENTS 6 7 8 11 12 14 16 18 19 20 22 23 27 28 30 32 39 46 47 49 Who we are We are strong Financial highlights We create value for our shareholders Key performance indicators 10-Year financial statistics Chairman’s report Notice of the annual general meeting Directors’ report Our strategic priorities Business model Management discussion and analysis Corporate social responsibilty Corporate governance Risk management The Board of directors Management team Company profile Disclosure of shareholdings Financial statements Proxy form WHO WE ARE WE ARE STRONG 19% 31,752 131 Market Capitalization Shareholders (Dec. 31, 2018) Market Share Polices in Force Employed (Dec. 31, 2018) 3.65B 1,062 26,632 Policyholders 6• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 $8.7 Billion in GROSS WRITTEN PREMIUM $7.1 Billion in TOTAL ASSETS $353 Million in PROFIT BEFORE TAX $175 Million in INVESTMENT INCOME 19% 31,752 131 Market Capitalization Shareholders (Dec. 31, 2018) Market Share Polices in Force Employed (Dec. 31, 2018) 3.65B 1,062 26,632 Policyholders WE ARE STRONG $8.7 Billion in GROSS WRITTEN PREMIUM $7.1 Billion in TOTAL ASSETS $353 Million in PROFIT BEFORE TAX $175 Million in INVESTMENT INCOME General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •7 FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS cont’d PREMIUM MOVEMENT OVER FIVE YEARS 0.26 0.23 0.21 0.13 2014 2015 2016 2017 2018 (0.08) LOSS RATIO OVER FIVE YEARS 63% 62% 66% 82% 63% 2014 2015 2016 2017 2018 8• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 COMBINED RATIOS 2018 2017 2016 2015 2014 -21% 63% 49% 91% -22% 82% 43% 103% -14% 66% 44% 96% -12% 62% 40% 90% -14% 63% 41% 90% -40% -20% -0% 20% 40% 60% 80% 100% 120% INCURRED LOSSES EARNED EPENSE RATIO COMMISSION PAID PREMIUM MOVEMENT OVER FIVE YEARS 0.26 0.23 0.21 0.13 2014 2015 2016 2017 2018 (0.08) LOSS RATIO OVER FIVE YEARS 63% 62% 66% 82% 63% 2014 2015 2016 2017 2018 FINANCIAL HIGHLIGHTS cont’d COMBINED RATIOS 2018 2017 2016 2015 2014 -21% 63% 49% 91% -22% 82% 43% 103% -14% 66% 44% 96% -12% 62% 40% 90% -14% 63% 41% 90% -40% -20% -0% 20% 40% 60% 80% 100% 120% INCURRED LOSSES EARNED EPENSE RATIO COMMISSION PAID General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •9 FINANCIAL HIGHLIGHTS cont’d WE CREATE VALUE FOR OUR SHAREHOLDERS Consistent Shareholder Dividend Dividend as percentage of profit Dividend per Share 62% 48% 54% 57% 52% 68% $0.20 $0.14 $0.17 $0.17 $0.15 $0.19 2013 2014 2015 2016 2017 2018 General Accident offers a wide range of product lines to meet the evolving needs of our customers. We offer a suite of commercial solutions to help business owners protect their legacies. We help individuals and their families protect what matters to them the most. We provide an opportunity for professionals to protect their integrity and status. 10• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 WE CREATE VALUE FOR OUR SHAREHOLDERS Consistent Shareholder Dividend Dividend as percentage of profit Dividend per Share 62% 48% 54% 57% 52% 68% $0.20 $0.14 $0.17 $0.17 $0.15 $0.19 2013 2014 2015 2016 2017 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •11 KEY PERFORMANCE INDICATORS HEADING Profit Before Taxation ‘000 Earnings per Share Net Worth Movement Return on Average Equity 404,243 352,569 0.38 0.28 319,965 303,448 0.31 0.30 236,077 0.21 20% 20% 17% 14% 11% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 12% 11% 8% 6% -1% Return on Shareholders Underwriting Margin 21% 21% 19% 9% 14% 2014 2015 2016 2017 2018 10% 10% 11% 4% 2014 2015 2016 2018 2017 -3% 12• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •12 Profit Before Taxation ‘000 Earnings per Share Net Worth Movement Return on Average Equity 404,243 352,569 0.38 0.28 319,965 303,448 0.31 0.30 236,077 0.21 12% 11% 8% 6% 20% 20% 17% 14% 11% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 -1% Return on Shareholders Underwriting Margin 21% 21% 19% 9% 14% 2014 2015 2016 2017 2018 10% 10% 11% 4% 2014 2015 2016 2018 2017 -3% General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •13 10-YEAR FINANCIAL STATISTICS 2018 $'000 2017 $'000 2016 $'000 Gross Written Premiums Net Written Premiums Net Earned Premiums Claims Expenses Management Expenses Underwriting Profit/(Loss) Investment Income Profit Before Tax Profit After Tax Cash Dividends Investment Assets Insurance Reserves Shareholder’s Equity 8,735,797 1,862,294 1,630,430 1,023,022 794,061 174,768 174,675 352,569 285,370 150,047 3,340,001 3,975,949 2,056,612 7,106,254 5,649,097 1,221,151 1,459,344 1,136,262 1,329,900 746,073 1,087,590 500,388 572,287 45,609 (35,532) 328,382 236,077 221,236 328,762 404,243 386,879 2015 $'000 6,112,355 1,190,965 1,120,055 696,480 446,362 114,656 210,959 303,448 304,418 2014 $'000 2013 $'000 2012 $'000 2011 2010 $'000 $'000 5,072,375 4,479,755 3,788,969 3,626,395 2,203,074 1,066,538 1,018,398 1,069,098 693,085 784,562 819,490 932,818 994,193 866,513 991,175 2009 $'000 1,683,911 592,741 599,663 678,558 441,628 101,941 646,791 540,775 420,142 426,624 391,416 381,073 332,903 300,592 241,641 204,357 58,503 117,362 161,589 68,862 240,374 284,788 186,114 1,015,010 204,565 319,965 323,702 285,269 1,341,478 244,775 320,078 327,914 290,537 1,284,816 213,944 172,219 175,003 200,001 2,721,177 3,116,686 3,025,915 3,192,778 2,507,955 2,163,365 1,775,297 1,937,771 1,964,420 203,878 140,025 100,031 90,925 95,000 270,000 2,540,368 2,369,298 1,780,642 1,602,732 1,988,573 2,364,658 1,579,382 1,456,944 1,288,850 1,140,743 1,270,502 1,034,229 1,727,588 1,357,765 2,042,511 2,199,132 1,511,904 1,163,257 Ratios & Other Information Employee Policies In Force Market Share Gross Written Premiums Movement Loss Ratio Expense Ratio Underwriting Margin Investment Return Return On Average Equity Dividend Yield On Average Equity Net Worth Movement Total Return To Shareholders 2018 131 31,403 19% 2017 111 24,000 17% 2016 91 18,205 15% 23% 63% 9% 11% 5% 14% 7% 6% 14% 26% 82% 8% -3% 11% 11% 10% -1% 9% -8% 66% 9% 4% 11% 21% 9% 11% 19% 2015 90 16,864 16% 21% 62% 7% 10% 8% 18% 10% 12% 22% 16,087 16,015 15,876 15,427 13,466 2014 78 15% 13% 63% 9% 10% 10% 21% 13% 8% 21% 2013 83 15% 18% 65% 9% 6% 14% 24% 10% 13% 24% 2012 77 13% 4% 58% 9% 13% 11% 24% 8% 13% 22% 2011 44 13% 65% 51% 8% 20% 61% 107% 8% 13% -3% 2010 69 10% 31% 62% 11% 10% 13% 19% 8% 13% 32% 14• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 33,818 134,106 141,300 105,299 2009 66 11,727 7% 12% 65% 12% 6% 10% 10% 25% 13% 13% Gross Written Premiums Net Written Premiums Net Earned Premiums Claims Expenses Management Expenses Underwriting Profit/(Loss) Ratios & Other Information Investment Income Profit Before Tax Profit After Tax Cash Dividends Investment Assets Insurance Reserves Shareholder’s Equity Employee Policies In Force Market Share Loss Ratio Expense Ratio Underwriting Margin Investment Return Return On Average Equity Dividend Yield On Average Equity Net Worth Movement Total Return To Shareholders Gross Written Premiums Movement 2018 $'000 2017 $'000 2016 $'000 8,735,797 7,106,254 5,649,097 1,862,294 1,459,344 1,221,151 1,630,430 1,329,900 1,136,262 1,023,022 1,087,590 746,073 794,061 572,287 500,388 174,768 (35,532) 45,609 174,675 328,382 328,762 352,569 236,077 404,243 285,370 221,236 386,879 2015 $'000 6,112,355 1,190,965 1,120,055 696,480 446,362 114,656 210,959 303,448 304,418 150,047 3,340,001 3,975,949 2,056,612 175,003 200,001 3,116,686 3,025,915 172,219 2,721,177 3,192,778 2,507,955 2,163,365 1,775,297 1,937,771 1,964,420 31,403 24,000 18,205 2018 131 19% 23% 63% 9% 11% 5% 14% 7% 6% 14% 2017 111 17% 26% 82% 8% -3% 11% 11% 10% -1% 9% 2016 91 15% -8% 66% 9% 4% 11% 21% 9% 11% 19% 2015 90 16,864 16% 21% 62% 7% 10% 8% 18% 10% 12% 22% 2014 $'000 2013 $'000 2012 $'000 2011 $'000 2010 $'000 5,072,375 4,479,755 3,788,969 3,626,395 2,203,074 784,562 991,175 1,066,538 1,018,398 693,085 932,818 994,193 1,069,098 426,624 540,775 646,791 678,558 241,641 332,903 381,073 441,628 68,862 117,362 58,503 101,941 866,513 819,490 420,142 300,592 161,589 240,374 319,965 320,078 284,788 323,702 327,914 186,114 285,269 290,537 1,015,010 1,341,478 1,284,816 204,565 244,775 213,944 2009 $'000 1,683,911 592,741 599,663 391,416 204,357 33,818 134,106 141,300 105,299 100,031 140,025 203,878 270,000 90,925 1,727,588 1,357,765 2,540,368 2,369,298 1,780,642 1,602,732 1,163,257 1,511,904 2,199,132 2,042,511 1,988,573 2,364,658 1,579,382 1,456,944 1,288,850 1,140,743 1,270,502 1,034,229 95,000 2014 78 16,087 15% 13% 63% 9% 10% 10% 21% 13% 8% 21% 2013 83 16,015 15% 18% 65% 9% 6% 14% 24% 10% 13% 24% 2012 77 15,876 13% 4% 58% 9% 13% 11% 24% 8% 13% 22% 2011 44 15,427 13% 65% 51% 8% 20% 61% 107% 8% 13% -3% 2010 69 13,466 10% 31% 62% 11% 10% 13% 19% 8% 13% 32% 2009 66 11,727 7% 12% 65% 12% 6% 10% 10% 25% 13% 13% General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •15 Paul B. Scott Chairman CHAIRMAN’S REPORT 2018 was the first year of our “Call to Action” Five-Year Strategic Plan. General Accident had another successful year; one that delivered strong results and successfully combined profitability and solvency. We expanded our sphere of influence outside the corporate area into other parts of the island and our motor portfolio in particular showed encouraging growth. We will continue to reward your investment in General Accident by making consistent dividends to shareholders. We are focused on using digital transformation to provide our customers with better and more efficient solutions for their insurance needs. We have the financial strength to expand through organic growth and by acquisition, should suitable opportunities present themselves. OUTLOOK We are confident that our management team will continue to deliver improved results in 2019, based on settled strategies. While we build digital competence, we are reducing the complexity of internal processes. This is a positive push factor for profitability. We continue to seek innovation in the products we offer to build client satisfaction and steady growth. As always, I would like to express my gratitude to our policyholders, brokers, reinsurers, management team and board of directors for their continued support. Thanks to the significant pool of expertise offered by our staff. We look towards the future with optimism. Paul B. Scott CHAIRMAN General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •17 NOTICE OF ANNUAL GENERAL MEETING General Accident Insurance Company Jamaica Limited NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of General Accident Insurance Company Jamaica Limited (the “Company”) will be held at 9:00 am on September 11, 2019 at 58 Half Way Tree Road, Kingston 10, for shareholders to consider and, if thought fit, to pass the following resolutions: ORDINARY RESOLUTIONS 1. To receive the report of the Board of Directors and the Audited Accounts of the Company for the financial year ended December 31, 2018. 2. To authorize the Board of Directors to reappoint PricewaterhouseCoopers as the auditors of the Company and to fix their remuneration. 3. To re-appoint the following Directors of the Board who have resigned by rotation in accordance with the Articles of Incorporation of the Company and, being eligible, have consented to act on reappointment: (a) To reappoint P.B. Scott, Director of the Board of the Company. (b) To reappoint Melanie Subratie, Director of the Board of the Company. (c) To reappoint Christopher Nakash, Director of the Board of the Company. 4. To authorize the Board of Directors to fix the remuneration of the Directors. 5. To approve the aggregate amount of interim dividends declared by the Board during the financial years ended December 2018 being $150 million or 14.55 cents per ordinary share, as the final dividend for that year. Dated this 30th day of April 2019 by Order of the Board. 18• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 DIRECTORS’ REPORT The Directors are pleased to present their report for General Accident Insurance Company (Jamaica) Limited for the financial year ended December 31, 2018. FINANCIAL RESULTS The Statement of Comprehensive Income for the Company shows pre-tax profits for the year of $352.6 Million, taxation of $67.2 Million, and a net profit after tax of $285.4 Million. Details of these results, along with a comparison with the previous year’s performance and the state of affairs of the company, are set out in the Management Discussion and Analysis and the Financial Statements which are included as part of this Annual Report. DIRECTORS The Directors of the company as at December 31, 2018 were P.B. Scott, Melanie Subratie, Sharon Donaldson, Geoffrey Messado, Christopher Nakash, Jennifer Scott, Nicholas Scott, Duncan Stewart, Matthew Lyn, Brian Jardim and Gregory Foster. The Directors to retire by rotation in accordance with the Article of Incorporation are: P.B. Scott, Melanie Subratie and Christopher Nakash. AUDITORS The auditors of the company, PricewaterhouseCoopers of Scotiabank Centre, Duke Street, Kingston, Jamaica have expressed their willingness to continue in office. The Directors recommend their reappointment. DIVIDEND A dividend of 14.55 cents per share payable on January 8, 2019, is proposed to be the final dividend in respect of the financial year ended December 31, 2018. General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •19 OUR STRATEGIC PRIORITIES VALUE CREATION AND LONG-TERM SUSTAINABILITY Risk confronts all economic activity. General Accident creates value for individuals and businesses by providing a range of risk transfer mechanisms, facilitating robust commercial activity and protecting the assets of companies and people by reducing risk and uncertainty. We create value by our knowledge of risk assessment and management, and solid insurance underwriting techniques. When risk is managed appropriately by countries, corporations and families, long-term sustainability of economic health is safe-guarded. an opportunity to reinforce the trust of our clients and producers and build customer loyalty. ROBUST RISK MANAGEMENT Insurance cover reduces risk and uncertainty. We rely on our risk management framework to ensure that our risk tolerance limits are adhered to, particularly regarding reinsurance support, risk spread, through a series of multi-layered controls. Regulatory capital adequacy is central to our continuity, and our risk strategies are designed to ensure that legal requirements are met or exceeded. SOUND INVESTMENT DECISIONS BUILDING SUPPORTING CAPACITY – OUR STAFF Our investment policy is geared towards building a strong, growing balance sheet, by stringent asset/ liability management and ensuring capital adequacy. Our investment decisions are influenced by cash flow imperatives, potential currency volatility and the inflation sensitivity of our underwriting liabilities. We target the optimal mix of investments to provide adequate returns for shareholders, while meeting all regulatory requirements. ISLANDWIDE DISTRIBUTION CHANNELS We write business directly and through an extensive broker and agent network. Our distribution partners are essential to our business model and we regard our producers as strategic drivers of our success, providing convenience and professional guidance to our customers. FAST, FAIR CLAIMS SETTLEMENT We believe the true test of an insurance policy is when a claim is made. We endeavour to meet our customers’ expectations for fair, flexible and accessible claims service by simple processes and fast turnaround times. We see claims handling as Our staff complement is the one of our most important resources. We are committed to recruiting, training and keeping the right people, providing them with a culture of excellence and opportunity. We create value for our employees by investing in their capabilities and potential through training and development programmes. UTILIZING INFORMATION TECHNOLOGY Technology is central to our business, delivering a core competitive advantage that drives long-term value by enhancing our clients’ experience, driving efficiency and creating new opportunities. Our products and skills are available to our customers online, in person or on the phone and we ensure that our customers get the same high-quality service no matter how they approach us. We are investing in technology to ensure we have the best and most secure systems in place for claims, payments and renewals, as well to build greater cost-effectiveness and efficiency. Expanding use of data analytics allows us to build agility in the face of changing market trends and ensure data-driven decisions. 20• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 INCREASE OPERATIONAL EARNINGS We believe that profitable growth should be responsible growth, with due regard paid to profitable and sustainable premium rates. Our business model begins with our customers’ needs, which informs product innovation in collaboration with our business partners and producers. Our growth initiatives remain: • Growth in value-priced and profitable product lines • Payment of dividends to shareholders • Steady strengthening of our balance sheet, liquidity base and capital to provide the essential foundation for growth • Consistent improvements in operational efficiencies, as we aim to deliver service that exceeds our clients’ and our business partners’ expectations. MAINTAIN CORPORATE SOCIAL RESPONSIBILITY We regard our good reputation as a critical long-term asset, which is based on the underlying insurance principle of utmost good faith. With the consistent guidance and expertise of our Board of Directors, we seek to: • Provide a productive and fairly-compensated work environment for our staff, including a range of incentives for excellent performance • Establish best practice benchmarks to guide service delivery of our products • Operate a successful corporate social responsibility programme which involves our staff in outreach efforts to support education, under-served children and the natural environment • Ensure all we do is grounded in high standards of integrity and ethical conduct General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •21 BUSINESS MODEL Sales General Accident Collection of Insurance Solutions Distribution Partners Advice Risk Transfer Risk Solutions Our Customers Government & Regulators n o i t a e r C e u l a V d n a t s u r T Our Staff Our Shareholders Business Partners Although the business model remains fundamentally customer centric, the emergence of the new models that focus on a digital customer centric journey, that makes it easier to do business, is now a critical factor for our business model. This has pushed us to remodel our clients’ interactions with an enhanced digitization that demands new distribution channels. We aim to deploy as far as possible, bearing in mind regulatory limitations, technology based insurance solutions in the long term. Our ambition is to be the best general insurer as measured by our customers, employees, investors and the communities in which we live and work. Our business model is founded on the values of all our stakeholders. 22• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Sales General Accident Collection of Insurance Solutions Distribution Partners Advice Risk Transfer Risk Solutions Our Customers Government & Regulators n o i t a e r C e u l a V d n a t s u r T Our Staff Our Shareholders Business Partners MANAGEMENT DISCUSSION & ANALYSIS FINANCIAL HIGHLIGHTS 2018 was a good year for General Accident; we achieved strong financial results and improved profitability. We increased our profit before tax by 49% to $353.0 million; grew net written premiums by 28% to $1.862 billion, and produced an improved combined ratio. General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •23 Particulars2018$ billion2017$ billionTotal RevenueUnderwriting Profit (Loss)Investment IncomeProfit Before TaxReturn on Equity8.7350.1750.1750.3537.100(0.355)0.3280.23611%14%2018$ billion2017$ billionNet Premiums EarnedClaims CostNet CommissionOperating ExpensesUnderwriting Result1.630(1.023)0.3610.7941.330(1.09)0.2940.572(0.035)0.17520182017Investment IncomeRealized Gain on Disposal of InvestmentFair value gainsOther Investment gains/(losses)million164.9-9.8million173.5151.9 3.0(25.8)47.0302.6221.7ActualRequiredMCT/%211.6Liquidity/%9995200.8SHAREHOLDERSBOARDCHIEF EXECUTIVEOFFICERSENIOR EXECUTIVE & LEADERSHIP TEAMCONDUCT REVIEWCOMMITTEEAUDIT COMMITTEEINVESTMENT & LOANCOMMITTEECOMPENSATIONCOMMITTEEGRAND TOTAL8,735,7977,106,25423%Engineering307,9065,366,253930,7772,130,860434,5394,213,143922,2651,536,304(29%)27%1%39%PropertyMisc. ClassesMotorGROWTHDEPT CLASSGROSS PREMIUMDEC 2018 $’000GROSS PREMIUMDEC 2017 $’000Total MANAGEMENT DISCUSSION & ANALYSIS cont’d MANAGEMENT DISCUSSION & ANALYSIS cont’d REVENUE SUMMARY Premium income met and exceeded targets. Volume growth was especially strong in the AutoSmart products, driven mainly by increased visibility of the AutoSmart brand achieved through the advertising campaign launched in early 2018. Gross premium of $8.7 billion increased by 23% over prior year; earned commission of $361.0 million outpaced prior year by 23%. This highly satisfactory outcome occurred despite high levels of competition in the property market. New business grew by 30% over prior year. Although property rates declined in the second half of 2018, we were able to selectively exploit business opportunities that offered adequate margins. Overall, we adhered to our aggressive but profit-oriented underwriting policy. OPERATING EXPENSES Operating expenses increased over prior year due largely to the advertising campaign but the expense ratio of 8.7% compared favourably with the performance of our competitors. UNDERWRITING RESULTS The improvement in our technical results is partly due to a higher premium income and a reduction in claims incurred cost. This positive development in claims outcome was partly attributable to the effects of a targeted approach to settle or close long outstanding matters. We also experienced significant improvements in recovery from third parties in the second half of the year. The combined ratio, which reflects the relation of claims cost to net earned premiums, was 91%, an improvement over the prior year position of 103.0% INVESTMENT INCOME Owing to the ongoing low reinvestment yield and low market interest rates in the year under review, yields on new investments was lower than last year, generating income well below prior year performance. Return on investment amounted to 7% compared to prior year performance of 11%. 24• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Particulars2018$ billion2017$ billionTotal RevenueUnderwriting Profit (Loss)Investment IncomeProfit Before TaxReturn on Equity8.7350.1750.1750.3537.100(0.355)0.3280.23611%14%2018$ billion2017$ billionNet Premiums EarnedClaims CostNet CommissionOperating ExpensesUnderwriting Result1.630(1.023)0.3610.7941.330(1.09)0.2940.572(0.035)0.17520182017Investment IncomeRealized Gain on Disposal of InvestmentFair value gainsOther Investment gains/(losses)million164.9-9.8million173.5151.9 3.0(25.8)47.0302.6221.7ActualRequiredMCT/%211.6Liquidity/%9995200.8SHAREHOLDERSBOARDCHIEF EXECUTIVEOFFICERSENIOR EXECUTIVE & LEADERSHIP TEAMCONDUCT REVIEWCOMMITTEEAUDIT COMMITTEEINVESTMENT & LOANCOMMITTEECOMPENSATIONCOMMITTEEGRAND TOTAL8,735,7977,106,25423%Engineering307,9065,366,253930,7772,130,860434,5394,213,143922,2651,536,304(29%)27%1%39%PropertyMisc. ClassesMotorGROWTHDEPT CLASSGROSS PREMIUMDEC 2018 $’000GROSS PREMIUMDEC 2017 $’000TotalParticulars2018$ billion2017$ billionTotal RevenueUnderwriting Profit (Loss)Investment IncomeProfit Before TaxReturn on Equity8.7350.1750.1750.3537.100(0.355)0.3280.23611%14%2018$ billion2017$ billionNet Premiums EarnedClaims CostNet CommissionOperating ExpensesUnderwriting Result1.630(1.023)0.3610.7941.330(1.09)0.2940.572(0.035)0.17520182017Investment IncomeRealized Gain on Disposal of InvestmentFair value gainsOther Investment gains/(losses)million164.9-9.8million173.5151.9 3.0(25.8)47.0302.6221.7ActualRequiredMCT/%211.6Liquidity/%9995200.8SHAREHOLDERSBOARDCHIEF EXECUTIVEOFFICERSENIOR EXECUTIVE & LEADERSHIP TEAMCONDUCT REVIEWCOMMITTEEAUDIT COMMITTEEINVESTMENT & LOANCOMMITTEECOMPENSATIONCOMMITTEEGRAND TOTAL8,735,7977,106,25423%Engineering307,9065,366,253930,7772,130,860434,5394,213,143922,2651,536,304(29%)27%1%39%PropertyMisc. ClassesMotorGROWTHDEPT CLASSGROSS PREMIUMDEC 2018 $’000GROSS PREMIUMDEC 2017 $’000Total MANAGEMENT DISCUSSION & ANALYSIS cont’d Investment Result FINANCIAL STRENGTH For 2018, the company generated Profit after Tax of $285.4 million, compared to $221.2 million for the prior year. Shareholders’ equity increased to $2.1 billion, up from $1.9 billion. Earnings Per Share [EPS] of $0.28 improved slightly over prior year $0.21. The number of shareholders increased, an indication of shareholder confidence. Total assets of $7.1 billion increased by 24% up from $6.7 billion last year. Market capitalization improved over prior year to $3.6 billion, an increase of 26% over prior year at $2.9 million. CAPITAL POSITION We continue to manage our capital to ensure that we meet all applicable regulatory standards. We aim to achieve a level of financial strength that will enable us to take advantage of profitable growth opportunities. We are happy to report that we met all regulatory capital and liquidity requirements for 2018. LOOKING AHEAD For 2019, we anticipate premium income growth upwards of 15% over prior year. The key drivers are expected to be the excellent relationship we continue to enjoy with our producers, the expansion of existing client relationships, as well as seeking any profitable opportunities. We expect the 2019 combined ratio to be around 90% of net earned premium. An accurate forecast is not possible due largely to the volatility of our damage and injury claims. If the average claims ratio for 2018 holds in 2019, we project the technical results to be somewhat better than the year under review. For our investments, we expect to generate slightly lower yields on regular fixed income interest securities. With the projected growth in premium, however, we want to incrementally increase our diversified portfolio and we are committed to pursuing profitable new investments. We are investing heavily in digital transformation. We now have in place a dedicated unit that is mandated to capture and analyse data that will drive our business strategy and enhance our core business. Management is committed to building on the strategy implemented in 2018. We will continue to focus on strong brand development, reasonable levels of diversification, a robust capital shield and a managed risk appetite. To achieve our strategic goals, we must ensure that we have the right team and tools in place. With this in mind, we will maintain our focus on innovation, managing the talents of our staff complement and leveraging our group’s diversity. General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •25 Particulars2018$ billion2017$ billionTotal RevenueUnderwriting Profit (Loss)Investment IncomeProfit Before TaxReturn on Equity8.7350.1750.1750.3537.100(0.355)0.3280.23611%14%2018$ billion2017$ billionNet Premiums EarnedClaims CostNet CommissionOperating ExpensesUnderwriting Result1.630(1.023)0.3610.7941.330(1.09)0.2940.572(0.035)0.17520182017Investment IncomeRealized Gain on Disposal of InvestmentFair value gainsOther Investment gains/(losses)million164.9-9.8million173.5151.9 3.0(25.8)47.0302.6221.7ActualRequiredMCT/%211.6Liquidity/%9995200.8SHAREHOLDERSBOARDCHIEF EXECUTIVEOFFICERSENIOR EXECUTIVE & LEADERSHIP TEAMCONDUCT REVIEWCOMMITTEEAUDIT COMMITTEEINVESTMENT & LOANCOMMITTEECOMPENSATIONCOMMITTEEGRAND TOTAL8,735,7977,106,25423%Engineering307,9065,366,253930,7772,130,860434,5394,213,143922,2651,536,304(29%)27%1%39%PropertyMisc. ClassesMotorGROWTHDEPT CLASSGROSS PREMIUMDEC 2018 $’000GROSS PREMIUMDEC 2017 $’000TotalParticulars2018$ billion2017$ billionTotal RevenueUnderwriting Profit (Loss)Investment IncomeProfit Before TaxReturn on Equity8.7350.1750.1750.3537.100(0.355)0.3280.23611%14%2018$ billion2017$ billionNet Premiums EarnedClaims CostNet CommissionOperating ExpensesUnderwriting Result1.630(1.023)0.3610.7941.330(1.09)0.2940.572(0.035)0.17520182017Investment IncomeRealized Gain on Disposal of InvestmentFair value gainsOther Investment gains/(losses)million164.9-9.8million173.5151.9 3.0(25.8)47.0302.6221.7ActualRequiredMCT/%211.6Liquidity/%9995200.8SHAREHOLDERSBOARDCHIEF EXECUTIVEOFFICERSENIOR EXECUTIVE & LEADERSHIP TEAMCONDUCT REVIEWCOMMITTEEAUDIT COMMITTEEINVESTMENT & LOANCOMMITTEECOMPENSATIONCOMMITTEEGRAND TOTAL8,735,7977,106,25423%Engineering307,9065,366,253930,7772,130,860434,5394,213,143922,2651,536,304(29%)27%1%39%PropertyMisc. ClassesMotorGROWTHDEPT CLASSGROSS PREMIUMDEC 2018 $’000GROSS PREMIUMDEC 2017 $’000Total CORPORATE SOCIAL RESPONSIBILITY I am confident of our team’s capabilities and their commitment to the future of our company. In 2018 we launched the “Bee the Difference” campaign to promote growth and career development of our staff. With strong human resources leadership, we believe we are able to guide and encourage the progress of our staff. Although the economic environment is challenging, and interest rates are expected to remain low, we are convinced that the strategy set in 2018 is the right one and we are committed to delivering on our promises to all our stakeholders. I would like to thank the General Accident team for their stellar performance and the Board for their guidance and support. Sharon Donaldson MANAGING DIRECTOR 26• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 CORPORATE SOCIAL RESPONSIBILITY learning, we support employees who wish to pursue a degree or certificate from an accredited university, college or professional association, by providing financial support for tuition and textbooks, as well as time off to study for exams. For employees who require a professional license as part of their job responsibilities, General Accident covers the training and license costs. General Accident Insurance Co. Ja. Ltd. conducts its business with a strong dedication to ethical and responsible practices. Throughout our organization we are cognizant of the positive and negative impact we can have on the natural environment and our communities. Each day we endeavour to minimise waste and reduce resource consumption, while we enhance positive impacts in terms of employee benefits, social welfare and community engagement. We believe there can be no sustainable profitability if we do not take care of the social and environmental footprint left by our business. We are committed to care for people’s well-being and we are proud of the work being done by our employees to give back to our communities. We strive to provide them with the encouragement and resources needed to support a diverse range of initiatives. Community Support We support organizations working to build strong and resilient communities. We believe we have the responsibility to make a positive difference in the communities in which we live and work, recognizing that when communities thrive, individuals and businesses benefit. A key priority for us in this area is investing in health, well-being and education as a future pathway to community prosperity. In 2018 General Accident contributed to and participated in several charitable initiatives including the Jamaica Cancer Society Relay for Life, Sigma Run, Colour Me Happy Run and Mobay City Run. As a leading Jamaican insurer we take our role in creating economic, social and environmental value seriously. Through our commitments to customers, employees, communities and the environment, we aim to create a better future for our employees, customers and Jamaica. Employee Engagement We strive to create a work environment where employees feel committed and inspired to give their best every day, ensuring their own success along with that of the company. We believe one of the best investments we can make is in our people. We provide employees with the tools, training and opportunities they need to reach their full potential, preparing them for future experiences and career opportunities. As part of our commitment to employment development and lifelong General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •27 THE AUDIT COMMITTEE The Audit Committee is comprised of three non-executive directors and one executive director. This committee has responsibility for the oversight of all matters relating to financial reporting, internal controls and approval of financial reports to be circulated to all regulatory bodies. The Audit Committee meets at least five times a year. Members of the Audit Committee are: Mr. Geoffrey Messado – Chairman, Mr. Christopher Nakash, Mr. Duncan Stewart, Mr. Brian Jardim, Mr. Gregory Foster and Mr. Matthew Lyn. INVESTMENT AND LOAN COMMITTEE The Investment and Loan Committee is comprised of three non-executive directors and one executive director. The committee has the responsibility to oversee and drive the company’s investment strategy, ensuring that all due diligence requirements are met, inter alia, liquidity, risk levels and term of investments. The committee meets at least four times a year. Members of the Committee are: Mrs. Melanie Subratie – Chairman, Ms. Sharon Donaldson – Managing Director, Mr. Christopher Nakash, Mr. Duncan Stewart, Mr. Matthew Lyn and Mr. Brian Jardim CORPORATE GOVERNANCE General Accident is particularly attentive to cutting- edge corporate governance principles. We review our governance policies annually to ensure relevance and utility. Our Board of Directors and executive committees are diverse, with regards to tenure, gender, professional background and experience. We select Board members based on desirable skill and experience that will contribute to the overall success of the company. Good corporate governance enables General Accident to create sustainable value for the benefit of its shareholders, customers, employees and other stakeholders. The Board of Directors has overall responsibility for the strategic direction and management of the company. The Board is comprised of eleven members: a non-executive Chairman, seven non-executive directors and three executive directors. The Board of Directors is supported by the work of four high-level executive committees, which examine and deliberate a range on proposals to attain strategic outcomes. The Board generally meets five times a year. THE COMPENSATION COMMITTEE The Compensation Committee is responsible for overseeing decisions on remuneration for Board members and senior managers, in order to promote a high-performance culture aligned with risk management principles. The Compensation Committee meets once per year. Members of the Remuneration Committee are: Mr. Paul Scott – Chairman, Ms. Sharon Donaldson and Mr. Gregory Foster. THE CONDUCT REVIEW COMMITTEE The Conduct Review Committee is comprised of four directors. This committee has responsibility for review and oversight of our policies and procedures to ensure that General Accident conducts its affairs in keeping with our values and regulatory requirements. The committee meets at least three times a year. Members of the Conduct Review Committee are: Mr. Christopher Nakash – Chairman, Mr. Duncan Stewart, Mr. Brian Jardim, Mr. Gregory Foster and Mr. Matthew Lyn. 28• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Corporate Governance Structure SHAREHOLDERS BOARD CHIEF EXECUTIVE OFFICER SENIOR EXECUTIVE & LEADERSHIP TEAM AUDIT COMMITTEE CONDUCT REVIEW COMMITTEE COMPENSATION COMMITTEE INVESTMENT & LOAN COMMITTEE Corporate Governance Structure SHAREHOLDERS BOARD AUDIT COMMITTEE CONDUCT REVIEW COMMITTEE COMPENSATION COMMITTEE INVESTMENT & LOAN COMMITTEE CHIEF EXECUTIVE OFFICER SENIOR EXECUTIVE & LEADERSHIP TEAM General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •29 RISK MANAGEMENT General Accident is regulated by the Financial Services Commission (FSC) and the FSC operates a risk-based approach to supervision. The Company has a Board-approved risk management framework, which identifies risk appetite and the major risk outcomes that pose a threat to the achievement of the company’s strategic objectives. The entire management team has been engaged in a risk management exercise to identify and rank risks associated with main operational processes. Risks are monitored monthly and reported under a number of headings which, together with our mitigation approach, are set out below: Type of Risk Risk Detail Approach Underwriting Risk Adverse claims development Inadequate premiums • • • • Prudent reserving practice/policy for individual claims Broker IBNR practice Rigorous selection criteria for each risk Clear and disciplined underwriting philosophy Effective diversification of risks • • Well-structured reinsurance Liquidity Risk The risk of insufficient cash flows to meet settlement obligations as they fall due. Operational Risk The risk of failure of internal processes and systems and loss of or inadequate human resources. Regulatory Capital The risk of not meeting regulatory benchmarks Market Risk The risk of losses on our investment portfolio arising from fluctuations in the market value of underlying investments • • • • • • • programme. The use of cash flow forecasting to manage future cash requirements Sufficient liquid assets are maintained to ensure that there are adequate funds to meet all obligations even at short notice Internal processes are frequently reviewed and tested to determine vulnerability and corrected as required. Staff training and building of organizational capacity is an ongoing process. Frequent modeling of the company’s capital components to ensure transaction decisions are made in such a way to avoid a drag on capital ratio The company has a well-defined investment strategy that is clearly communicated to all members of the investment committee. This is regularly reviewed and is consistent with the prudent person principle. A diversified portfolio lies at the heart of our investment strategy and investments’ duration and currency are so determined to avoid any mismatch of assets and liabilities whilst earning the maximum return at an acceptable level of risk. Credit Risk The risk arising from the likely default by counterparties. • Review of solvency requirements of each major counterparty. 30• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 THE RISK COMMITTEE The Risk Committee is responsible for examining major risks faced by the company for both assets and liabilities and reviewing tools for monitoring and controlling such risks, using outside risk experts when necessary. The committee examines the main technical and financial underwriting commitments, claims reserving, risk concentration, counterparty, liquidity and operational risks, as well as relevant charges in the regulatory environment. The Risk Committee is comprised of seven members and is chaired by a member of the Senior Management team. It meets at least four times a year. General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •31 HEADING THE BOARD OF DIRECTORS THE BOARD OF DIRECTORS Paul B. Scott (appointed November 1998) Chairman PB Scott is the Chairman, CEO and principal shareholder of the Musson Group. He joined the group in 1994 and became CEO in 2004. In 2009 he was appointed chairman of the board. He is responsible for the strategic direction, performance and overall operations of the Musson Group and all of its subsidiaries including the Facey Group, PBS Group, Seprod, T. Geddes Grant Distributors ltd. and General Accident Insurance Company ltd. among others. In addition to his responsibilities at Musson he serves on many public boards and commissions. He is a trustee of the American International School of Jamaica and currently is Chairman of the Development Bank of Jamaica (DBJ). He is a past President of the Private Sector Organization of Jamaica. Melanie Subratie (appointed March 2002) Deputy Chairman Melanie Subratie is Chairman and CEO of Stanley Motta Ltd, a company Listed on the Jamaica Stock Exchange, responsible for developing over 230k sq. ft. Of real estate from concept to completed construction, to a fully tenanted technology park. She is Vice Chairman of Musson (Ja.) Ltd and a director on all its subsidiaries, in addition to being Vice Chairman of Eppley Ltd. And sits on the executive of Seprod Group of Companies and all of its subsidiary boards. Melanie chairs the Audit Committee for both Productive Business Solutions Ltd and Seprod Ltd. She is Chairman of Seprod Foundation, Musson Foundation, a founder and Chairperson of Jamaica Girls Coding and Chairman to RISE Life Management. A number of her foundation projects have included a major focus on developing technology and coding skills for Jamaican youth. Melanie is a keen Angel investor and sits on the Boards of LoanCirrus, Bookfusion, and is a board member of First Angels itself. She sits on the Boards of Bustamante Children’s Hospital and the National Museum of Jamaica. She is currently working to set up Jamaica’s first large scale skatepark. Melanie is fourth Vice President of the Jamaica chamber of Commerce, and is the current Chair of the Legislation, Regulation and Process Improvement Committee. Melanie is an honors graduate of the London School of Economics and worked for a political newswire start up and as a Consultant in the Financial Services Division of Deloitte and Touch in London before returning to Jamaica. Melanie is mother to three (3) girls. 34• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Sharon Donaldson (appointed March 2008) Managing Director Sharon Donaldson is the Managing Director of the Company. She has been responsible for driving its recent growth and for overseeing its prudent underwriting and risk management strategy. Ms. Donaldson has been with the Company for over 20 years, first joining as the Financial Controller in 1989 before becoming Managing Director in 2001. In addition to her responsibilities at the Company, Ms. Donaldson is a Director of Musson (Jamaica) Limited. Ms. Donaldson holds an LLB from the University of London, England, and M.B.A from University of Wales. She is a Chartered Accountant, a member of the Institute of Chartered Accounts of Jamaica and an attorney at law. Geoffrey Messado (appointed May 2001) Non Executive Director Geoffrey Messado is a non-executive Director of the Company and is Chairman of the Audit Committee of the Board. Mr. Messado is also the Company Secretary of the Musson Group, and he serves as a director of certain subsidiaries and affiliated companies. He also serves as Chairman of Mapco Printers Limited and Devon House Development and as a director of Edgechem(Jamaica) Limited, Spirits Pool Association, KRB Lea Jamaica Rums Limited , Ciboney Group Limited and the Jamaica Agricultural Development Foundation. Mr. Messado is a Chartered Accountant, FCA, FCAA, ATII and a Justice of the Peace for St. Andrew. General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •35 Nicholas A. Scott (appointed July 2011) Non Executive Director Nicholas Scott is a non-executive Director of the company and the Chief Investment Officer for the Musson Group. He also serves as the Managing Director of Eppley Limited and as a director of many of the Musson subsidiaries and affiliates including Seprod. He returned to Jamaica in 2009 after working as a private equity investor and investment banker at the Blackstone Group in New York and Brazil. Mr. Scott Holds a BSc. In Economics (Magna Cum Laude) from the Wharton School at the University of Pennsylvania, an M.B.A. (Beta Gamma Sigma) from Columbia Business School and a M.P.A. from the Harvard Kennedy School of Government. Jennifer Scott (appointed December 2009) Non Executive Director Jennifer Scott is a non-executive Director of the Board of the Company. Mrs. Scott holds a B.Sc.(Hons) in Psychology from Newcastle University, United Kingdom, a Graduate Diploma in Legal Studies from Keele University, UK, and Certificate of Legal Practice from the College of Law, London. She was admitted as a Solicitor of Supreme Court of England and Wales. She attended Norman Manley Law School, and was admitted as an Attorney-at-Law of the Supreme Court of Jamaica in 2014. She is a consultant at Clinton Hart & Co., Attorneys-at-Law specialising in the areas of financial securities and corporate law. 36• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Nicholas Scott is a non-executive Director of the company and the Chief Investment Officer for the Musson Group. He also serves as the Managing Director of Eppley Limited and as a director of many of the Musson subsidiaries and affiliates including Seprod. He returned to Jamaica in 2009 after working as a private equity investor and investment banker at the Blackstone Group in New York and Brazil. Mr. Scott Holds a BSc. In Economics (Magna Cum Laude) from the Wharton School at the University of Pennsylvania, an M.B.A. (Beta Gamma Sigma) from Columbia Business School and a M.P.A. from the Harvard Kennedy School of Government. Jennifer Scott is a non-executive Director of the Board of the Company. Mrs. Scott holds a B.Sc.(Hons) in Psychology from Newcastle University, United Kingdom, a Graduate Diploma in Legal Studies from Keele University, UK, and Certificate of Legal Practice from the College of Law, London. She was admitted as a Solicitor of Supreme Court of England and Wales. She attended Norman Manley Law School, and was admitted as an Attorney-at-Law of the Supreme Court of Jamaica in 2014. She is a consultant at Clinton Hart & Co., Attorneys-at-Law specialising in the areas of financial securities and corporate law. Duncan Stewart (appointed August 2011) Independent Non Executive Director Duncan Stewart is one of the family leaders of Stewart’s Auto Sales Ltd. and its affiliated companies, Stewart’s Auto Paints Ltd., Tropic Island Trading Co. Ltd. and Silver Star Motors Ltd. He joined his family’s business as a 3rd generation member in 1985 after graduating with a B. Eng (Mech) degree from McGill University. He learned the business by working his way through the ranks, learning and following the family’s culture of service. Christopher Nakash (appointed December 2006) Independent Non Executive Director Christopher Nakash is an independent non-executive Director of the Board of the Company. Mr. Nakash brings to the Board his management experience, gained as Chief Executive Officer of Nakash Construction & Equipment Limited. In the past, Mr. Nakash also served as General Manager of Netstream Global (2003 to 2008), and he was also a founding member and Director of the Riverton Improvement Association and Intelligent Multimedia Limited. Mr. Nakash holds a BBA from University of New Brunswick, Canada. General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •37 Matthew Lyn (appointed July 2015) Independent Non Executive Director Matthew Lyn is an independent non-executive Director of the Board of the company. Mr Lyn is the Chief Operating Officer of the CB Group and its related companies, including CB Foods Ltd., Newport Mills Ltd. and Imagination Farms Ltd. He holds a B.B.A from the Goizuetta Business School at Emory University. Brian Jardim (appointed August 2017) Independent Non Executive Director Brain Jardim is the founder and CEO of Rainforest Seafoods Ltd. The leading seafood harvester, processor and distributor in the Caribbean. He joined the board of General Accident Insurance Company in 2017 as an independent director. Mr. Jardim currently serve as a director on the Board of the Jamaica Observer, We Care for Cornwall Regional Hospital, Industrial Chemical Company among others. He is a Certified Public Accountant (CPA), a graduate of the University of Florida where he obtained a MSc. in Financial Accounting and a BSc. in Business Administration as well as a Diploma in Business Administration from Ryerson University. 38• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Gregory St. Hugh Foster (appointed April 2018) Executive Director Gregory Foster is the Chief Operations Officer with responsibility for the Motor division and oversight of the finance, accounting and treasury function. Mr. Foster joined the Company in August 2014 after 8 years at PricewaterhouseCoopers where he held the position of an Assistant Manager in their Audit and Assurance Department. He has accumulated over seven years of experience in providing audit services to a wide spectrum of clients, including government/public sector, financial services, and manufacturing and distribution. Mr. Foster is also part-time lecturer at Richmond Academy an ACCA gold approved learning center. Mr. Foster obtained his ACCA professional qualification in 2006 and is also a member of Institute of Chartered Accountants of Jamaica (ICAJ). Matthew Lyn is an independent non-executive Director of the Board of the company. Mr Lyn is the Chief Operating Officer of the CB Group and its related companies, including CB Foods Ltd., Newport Mills Ltd. and Imagination Farms Ltd. He holds a B.B.A from the Goizuetta Business School at Emory University. Brain Jardim is the founder and CEO of Rainforest Seafoods Ltd. The leading seafood harvester, processor and distributor in the Caribbean. He joined the board of General Accident Insurance Company in 2017 as an independent director. Mr. Jardim currently serve as a director on the Board of the Jamaica Observer, We Care for Cornwall Regional Hospital, Industrial Chemical Company among others. He is a Certified Public Accountant (CPA), a graduate of the University of Florida where he obtained a MSc. in Financial Accounting and a BSc. in Business Administration as well as a Diploma in Business Administration from Ryerson University. MANAGEMENT TEAM General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •40 Careen Nolan Senior Underwriting Manager Careen began her insurance career with General Accident in January 1992, where she worked in the Underwriting department and held various post, the last being Underwriting Supervisor when she resigned in June 1996. She returned in 2007, as the Underwriting Manager and worked briefly with the company for two years, until she decided to follow other career aspirations. In January 2017, Miss Nolan rejoined the company and she was appointed Broker Services Manager. She brings to her new position a wealth of knowledge in Risk Management. Careen has a Bachelor of Science Degree in Computing with Management Studies from the University of Technology and an MBA in General Management. Andrea Muir Gibbs Broker Services Manager Andrea joined the company in 2013. She is responsible for managing the relationship with our Broking partners and corporate clients. Mrs. Muir-Gibbs has over 15 years of experience in the insurance industry. She is a Chartered Insurer and a member of the Chartered Insurance Institute (UK). General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •41 Jamalda Stanford-Brown Business Development Officer Jamalda joined General Accident in January 2018 as the Business Development Officer. She brings to the position a wealth of knowledge in the areas of auditing, risk and reinsurance having worked in finance and insurance in the international reinsurance market. Jamalda has a Bachelor of Science Degree in Economics and Accounting from the University of the West Indies, she is a Certified Public Accountant, a Chartered Property and Casualty Underwriter and holds an Associate Degree in Reinsurance. Lesley Miller Chief Information Officer Lesley joined General Accident in 2006 and held various positions in the Technology department. She held the position Senior I.T. Analyst with responsibility for the I.T. department until her resignation to join Digicel in November 2011. Lesley spent six years at Digicel in various senior roles where she continued to develop her skills in management and strategy development while innovating and developing new market opportunities. Lesley rejoined General Accident in January 2018 as Chief Information Officer. She brings to the role a wealth of knowledge in IT Service Management, product and process innovation. As CIO, Lesley’s focus is on a complete customer experience digital transformation by leveraging cutting-edge analytics and technologies. She holds a B.Sc. in Computing & Information Technology from the University of Technology Jamaica and an MBA in Banking & Finance from the University of the West Indies. Lesley is a certified Project Management Professional (PMP). 42• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Jamalda joined General Accident in January 2018 as the Business Development Officer. She brings to the position a wealth of knowledge in the areas of auditing, risk and reinsurance having worked in finance and insurance in the international reinsurance market. Jamalda has a Bachelor of Science Degree in Economics and Accounting from the University of the West Indies, she is a Certified Public Accountant, a Chartered Property and Casualty Underwriter and holds an Associate Degree in Reinsurance. Tracey-Ann Thompson Underwriting Manager Tracey-Ann joined the company in 2008. She is the Operations Manager for the Underwriting Department of the Company. Miss Thompson has over 7 years of experience in the insurance industry. She is the holder of a Bachelor of Science Degree in Banking and Finance and is currently pursuing a Master of Science Degree in Enterprise Risk Managemen. She is a Certified Insurance Technician from the College of Insurance Professional Studies. Janille Jarrett Motor Manager Janille joined General Accident in May 16, 2005, and has worked in the Customer Service, Underwriting and Broker Services departments. She advanced through the ranks and held the position of Underwriting Supervisor up to August 2015, when she migrated. She rejoined us in July 2016 and was appointed Underwriting Manager - AutoSMART, which is a specialized insurance business unit within General Accident. General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •43 Janette Cole Smith Finance & Compliance Manager Janette is the Compliance and Operations Officer of the Company. She rejoined the Company in January 2014. She has over 20 years of experience as a senior manager in the finance and insurance industry. Her last post was as the AVP of Operations at Proven Wealth Ltd. Mrs. Cole Smith is a Chartered Accountant and a member of the Institute of Chartered Accountants of Jamaica. Cheryll Henry Operations & Facilities Manager Cheryll is the Human Resources and Facilities Manager of the Company. Ms. Henry has been with the Company for over 15 years. She joined the Company in 1996 as an Administrative Supervisor and, notably, within a 10 year period she rotated through every division, and was also appointed Operations Manager of Orrett & Musson Investment Company Limited, a former subsidiary of the Company. Ms. Henry holds a Bachelors degree in Management Studies from the University of the West Indies and a Diploma in Human Resource Management from the Institute of Management & Production. 44• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Janette is the Compliance and Operations Officer of the Company. She rejoined the Company in January 2014. She has over 20 years of experience as a senior manager in the finance and insurance industry. Her last post was as the AVP of Operations at Proven Wealth Ltd. Mrs. Cole Smith is a Chartered Accountant and a member of the Institute of Chartered Accountants of Jamaica. Cheryll is the Human Resources and Facilities Manager of the Company. Ms. Henry has been with the Company for over 15 years. She joined the Company in 1996 as an Administrative Supervisor and, notably, within a 10 year period she rotated through every division, and was also appointed Operations Manager of Orrett & Musson Investment Company Limited, a former subsidiary of the Company. Ms. Henry holds a Bachelors degree in Management Studies from the University of the West Indies and a Diploma in Human Resource Management from the Institute of Management & Production. Douglas Hayden Information Technology Manager Douglas joined the company in December 2014. He came to us with over twenty years of experience in the Information Technology field, twelve of those years being at the management level. He holds a Bachelor’s degree in Computer Science from Florida International University, a diploma in Information Technology from the University of Technology and several professional certifications including Information Technology Infrastructure Library (ITIL v3). Tanya Thomas Business Intelligence Manager Tanya joined the Company in July 30, 2012 as a Data Analyst and in April 2015 she was promoted to Senior Data Analyst. She has prior experience in the field of management, having been employed for four years as an Administrative Manager with Quick Signs Ltd. She is the holder of a Bachelor of Science Degree in Computing with Management Studies. General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •45 COMPANY PROFILE DISCLOSURE OF SHAREHOLDINGS Chairman Deputy Chairman Managing Director REGISTERED OFFICE: • 58 Half Way Tree Road, Kingston Telephone No: (876) 929-2451 Fax No: (876) 929-1074 Email: info@genac.com Website: www.genac.com REGISTRAR: • Jamaica Central Securities Depository DIRECTORS: • P.B. Scott • Melanie Subratie • Sharon Donaldson • Geoffrey Messado • Jennifer Scott • Nicholas Scott • Duncan Stewart • Christopher Nakash • Matthew Lyn • Brian Jardim • Gregory Foster CORPORATE SECRETARY: • Geoffrey Messado APPOINTED ACTUARY: • Josh Worsham, FRAS, MAAA AUDITORS: • PricewaterhouseCoopers BANKERS: • CIBC First Caribbean International Bank • First Global Bank • Bank of Nova Scotia Jamaica Limited • National Commercial Bank ATTORNEYS: • Nunes Scholefield & DeLeon & Co: 6A Holborn Road Kingston • DunnCox 48 Duke Street, Kingston 46• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Shareholdings of Top 10 Shareholders Shareholders Shares Percentage Musson Jamaica Ltd. 824,999,989 80.00 Mayberry Jamaican Equities Ltd. Mayberry Managed Clients Account Apex Pharmacy JCSD Trustee Services Ltd. Sigma Venture Lancedale Farquharson P.A.M. Ltd. - Pooled Pension Equity Fund Lloyd Badal FirstCaribbean Int’l Sec. Ltd. A/C B.U.T. Sagicor Pooled Equity Fund 36,302,484 13,705,913 10,000,000 9,121,759 7,305,000 6,299,832 4,672,062 4,406,666 4,251,700 Shareholdings of Directors 1. P.B. Scott 2. Melanie Subratie 3. Sharon Donaldson 4. Duncan Stewart 5. Nicholas Scott 6. Christopher Nakash 7. Geoffrey Messado 8. Jennifer Scott 9. Matthew Lyn 10. Brian Jardim 11. Gregory Foster Nil Nil 3,677,956 2,475,190 1,980,198 1,698,020 1,000,000 Nil Nil Nil 350,000 3.52 1.33 0.97 0.88 0.71 0.61 0.45 0.43 0.41 Nil Nil Nil Nil Nil Nil Nil Nil 824,999,999 824,999,999 10,604 Shareholders Direct Connected DISCLOSURE OF SHAREHOLDINGS Shareholdings of Top 10 Shareholders Shareholders Shares Percentage Musson Jamaica Ltd. 824,999,989 80.00 Mayberry Jamaican Equities Ltd. Mayberry Managed Clients Account Apex Pharmacy JCSD Trustee Services Ltd. Sigma Venture Lancedale Farquharson P.A.M. Ltd. - Pooled Pension Equity Fund Lloyd Badal FirstCaribbean Int’l Sec. Ltd. A/C B.U.T. Sagicor Pooled Equity Fund 36,302,484 13,705,913 10,000,000 9,121,759 7,305,000 6,299,832 4,672,062 4,406,666 4,251,700 3.52 1.33 0.97 0.88 0.71 0.61 0.45 0.43 0.41 Shareholdings of Directors Shareholders Direct Connected 1. P.B. Scott 2. Melanie Subratie 3. Sharon Donaldson 4. Duncan Stewart 5. Nicholas Scott 6. Christopher Nakash 7. Geoffrey Messado 8. Jennifer Scott 9. Matthew Lyn 10. Brian Jardim 11. Gregory Foster Nil Nil 3,677,956 2,475,190 1,980,198 1,698,020 1,000,000 Nil Nil Nil 350,000 824,999,999 824,999,999 10,604 Nil Nil Nil Nil Nil Nil Nil Nil General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •47 Shareholdings of Management Team Manager Direct Connected 1. Janette Cole Smith 2. Douglas Hayden 3. Cheryll Henry 4. Janille Jarrett 5. Lesley Miller 6. Andrea Muir-Gibbs 7. Careen Nolan 8. Jamalda Stanford-Brown 9. Tanya Thomas Nil Nil 1,169,455 25,000 250,000 Nil Nil Nil Nil 10. Tracey-Ann Thompson 50,000 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Stock Trading General Accident’s ordinary shares traded on the Jamaica Stock Exchange (JSE) under the symbol GENAC. Quarterly high and low closing market of the stock in 2018 were as follows: Quarters Q1 2018 Q2 2018 Q3 2018 Q4 2018 High 3.19 2.98 3.80 3.60 Low 3.10 2.85 3.80 3.50 48• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 Shareholdings of Management Team Manager Direct Connected 1,169,455 25,000 250,000 Nil Nil Nil Nil Nil Nil 1. Janette Cole Smith 2. Douglas Hayden 3. Cheryll Henry 4. Janille Jarrett 5. Lesley Miller 6. Andrea Muir-Gibbs 7. Careen Nolan 8. Jamalda Stanford-Brown 9. Tanya Thomas Stock Trading General Accident’s ordinary shares traded on the Jamaica Stock Exchange (JSE) under the symbol GENAC. Quarterly high and low closing market of the stock in 2018 were as follows: Quarters Q1 2018 Q2 2018 Q3 2018 Q4 2018 High 3.19 2.98 3.80 3.60 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Low 3.10 2.85 3.80 3.50 10. Tracey-Ann Thompson 50,000 GENERAL ACCIDENT INSURANCE COMPANY JAMAICA LIMITED 31 December 2018 FINANCIAL STATEMENTS Actuary’s Report Independent Auditor’s Report to the Members Financial Statements Statement of comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Notes to the financial statements 1 2 3 4-5 6-64 50• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •51 52• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •53 54• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •55 56• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •57 58• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •59 60• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •61 62• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •63 64• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •65 66• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •67 68• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •69 70• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •71 72• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •73 74• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •75 76• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •77 78• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •79 80• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •81 82• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •83 84• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •85 86• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •87 88• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •89 90• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •91 92• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •93 94• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •95 96• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •97 98• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •99 100• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •101 102• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •103 104• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •105 106• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •107 108• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •109 110• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •111 112• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •113 114• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •115 116• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •117 118• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •119 120• General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 General Accident Insurance Company Jamaica Limited. ANNUAL REPORT 2018 •121 FORM OF PROXY “ I/We ________________________________________________(insert name)of _________________________________ ________________________________(address) being a shareholder(s) of the above-named Company, hereby appoint: ___________________________________________________(proxy name) of ___________________________ ____________________________(address) or failing him, ___________________________________________________.. __________________________(alternate proxy) of __________________________________________________________ _______________________________________________________________(address) as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held at 9:00am on September 11, 2019, at 58 Half Way Tree Road and at any adjournment thereof. I desire this form to be used for/against the resolutions as follows (unless directed the proxy will vote as he sees fit): No. Resolution details (tick as appropriate) ORDINARY RESOLUTIONS Vote for or against 1. To receive the report of the Board of Directors and the audited accounts For Against of the Company for the year ended December 31, 2018. 2. To authorize the Board of Directors to re-appoint PwC as the Auditors of For Against the Company and to fix their remuneration. To re-appoint the following Directors of the Board, who have resigned by rotation in accordance with the Articles of Incorporation of the Company and, being eligible, have consented to act on re- appointment. 3. (a) To re-appoint P.B. Scott a Director of the Board of the Company. 3. (b) To re-appoint Melanie Subratie as a Director of the Board of the For Against Company. 3. (c) To re-appoint Christopher Nakash as a Director of the Board of the For Against company. 4.(a) To Authorise the Board of Directors to fix the remuneration of the For Against Directors. 5. To approve the aggregated amount of interim dividends declared by the For Against Board during the financial year ended 31st December 2018, being $150,046,875 or 14.55 cent per ordinary share, as the final dividend for the year. Signed this day of 2019: Signed: _____________________________________ (signature of primary shareholder) Signed: _____________________________________ (signature of joint shareholder, if any) Name: _____________________________________ (print name of primary shareholder) Name: _____________________________________ (print name of joint shareholder, if any) FORM OF PROXY “ I/We ________________________________________________(insert name)of _________________________________ ________________________________(address) being a shareholder(s) of the above-named Company, hereby appoint: ___________________________________________________(proxy name) of ___________________________ ____________________________(address) or failing him, ___________________________________________________.. __________________________(alternate proxy) of __________________________________________________________ _______________________________________________________________(address) as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held at 9:00am on September 11, 2019, at 58 Half Way Tree Road and at any adjournment thereof. I desire this form to be used for/against the resolutions as follows (unless directed the proxy will vote as he sees fit): No. Resolution details (tick as appropriate) ORDINARY RESOLUTIONS Vote for or against 1. To receive the report of the Board of Directors and the audited accounts For Against of the Company for the year ended December 31, 2018. 2. To authorize the Board of Directors to re-appoint PwC as the Auditors of For Against the Company and to fix their remuneration. To re-appoint the following Directors of the Board, who have resigned by rotation in accordance with the Articles of Incorporation of the Company and, being eligible, have consented to act on re- appointment. 3. (a) To re-appoint P.B. Scott a Director of the Board of the Company. 3. (b) To re-appoint Melanie Subratie as a Director of the Board of the For Against 3. (c) To re-appoint Christopher Nakash as a Director of the Board of the For Against 4.(a) To Authorise the Board of Directors to fix the remuneration of the For Against 5. To approve the aggregated amount of interim dividends declared by the For Against Board during the financial year ended 31st December 2018, being $150,046,875 or 14.55 cent per ordinary share, as the final dividend for the Company. company. Directors. year. Signed this day of 2019: Signed: _____________________________________ (signature of primary shareholder) Signed: _____________________________________ (signature of joint shareholder, if any) Name: _____________________________________ (print name of primary shareholder) Name: _____________________________________ (print name of joint shareholder, if any)
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