More annual reports from Generac Holdings Inc:
2023 ReportGENERAL ACCIDENT ANNUAL REPORT | 2019 | 1 TABLE OF CONTENTS GENERAL ACCIDENT AT A GLANCE CORPORATE SOCIAL RESPONSIBILITY 6 7 8 10 11 12 15 16 Our Purpose Our Vision Corporate Structure Key Financial Highlights • Earnings per share • Consistent Shareholder Dividend • Stock Prices Who Are We We are Strong 10 - Year Statistical Review Our Strategic Focus Our Brand Promise NOTICE OF ANNUAL GENERAL MEETING 18 Notice of Annual General Meeting GOVERNANCE 23 25 26 30 Chairman’s Report Directors’ Report Directors’ Profiles Corporate Governance Report LEADERSHIP AND OPERATIONS 32 34 36 38 43 44 Senior Leadership Team Management Team Agent Network Management Discussion and Analysis Risk Management Risk Committee 45 49 Corporate Social Responsibility Employee Engagement DISCLOSURE OF SHAREHOLDINGS 51 53 54 Top 10 Shareholders Directors’ Shareholdings Senior Leadership and Management Shareholdings CORPORATE DATA 57 58 Company Profile Contact Information • Jamaica - Kingston - Montego Bay • Trinidad • Barbados FINANCIAL STATEMENTS 68 69 70 71 73 74 75 76 78 Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Company Statement of Comprehensive Income Company Statement of Financial Position Company Statement of Changes in Equity Company Statement of Cash Flows Notes of the Financial Statements PROXY FORM GENERAL ACCIDENT AT A GLANCE OUR PURPOSE General Accident offers a wide range of innovative, affordable general insurance products to deliver financial protection and peace of mind to individuals, families and businesses, while building a trained and well-compensated staff complement and delivering a fair return on investment to our shareholders. OUR VISION General Accident Insurance Company (GenAc) is a regional market leader in the general insurance sector contributing to Caribbean development through sound risk transfer mechanisms and excellent customer service. We build robust and long-term financial through profitable, sustainable health growth, supported by state-of-the-art digital technology and innovative corporate social responsibility programmes. 6 | GENERAL ACCIDENT ANNUAL REPORT | 2020 CORPORATE STRUCTURE General Accident Insurance Group Jamaica Revenue J$ 11.592B Barbados Revenue J$ 59.59M Trinidad Revenue J$ 393.09M 149 Employees 3 Employees 53 Employees Net Assets J$ 2.573B Net Assets J$ 180.22M Net Assets J$ 783.52M GENERAL ACCIDENT ANNUAL REPORT | 2020 | 7 KEY FINANCIAL HIGHLIGHTS EARNINGS PER SHARE EARNINGS PER SHARE .60 .50 .40 .30 .20 .10 0 0.38 0.21 0.28 0.24 0.54 27% 11% -1% 6% 1% 30 25 20 15 10 5 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 CONSISTENT SHAREHOLDER DIVIDEND $0.25 62% 54% 57% 52% 68% 80% $0.22 70% $0.20 48% $0.20 $0.19 50% $0.17 $0.17 $0.15 $0.14 34% $0.14 $0.15 $0.10 $0.05 $0.00 60% 50% 40% 30% 20% 10% 0% 2013 2014 2015 2016 2017 2018 2019 2020 8 | GENERAL ACCIDENT ANNUAL REPORT | 2020 Divdend per Share Dividend as percentage of profit 8 7 6 5 4 3 2 1 0 KEY FINANCIAL HIGHLIGHTS STOCK PRICE AT YEAR END $7.10 $6.19 $2.50 $1.76 $1.63 $1.75 $2.05 $3.54 $2.99 $2.80 DEC 2011 DEC 2012 DEC 2013 DEC 2014 DEC 2015 DEC 2016 DEC 2017 DEC 2018 DEC 2019 DEC 2020 STOCK PRICES – 2020 $6.07 $6.36 $6.19 $5.01 MAR 2020 JUN 2020 SEP 2020 DEC 2020 8 7 6 5 4 3 2 1 0 8 | GENERAL ACCIDENT ANNUAL REPORT | 2020 9 | GENERAL ACCIDENT ANNUAL REPORT | 2020 WHO WE ARE 19 MARKET SHARE 60,812 POLICIES IN FORCE 205 EMPLOYED COUNTRIES3 54,000 POLICYHOLDERS 1,390 SHAREHOLDERS 10 | GENERAL ACCIDENT ANNUAL REPORT | 2020 WE ARE STRONG 11.1 Billion in TOTAL ASSETS 12.0 Billion in GROSS WRITTEN PREMIUM 260 Million in PROFIT BEFORE TAX 194 Million in NET PROFIT 1.445 Million in UNDERWRITING PROFIT 294 in INVESTMENT INCOME Million GENERAL ACCIDENT ANNUAL REPORT | 2020 | 11 10 - YEAR STATISTICAL REVIEW Employees 2020 $'000 205 2019 $'000 132 Gross Written Premiums 12,044,990 10,727,828 1,816,926 1,205,328 1,445 259,536 193,812 222,668 442,136 770,154 651,558 142,684 2018 $'000 131 8,735,797 1,023,022 174,768 352,569 285,370 150,047 2017 $'000 111 7,106,254 1,087,590 -35,532 236,077 221,236 200,001 5,649,097 6,112,355 5,072,375 4,479,755 3,788,969 3,626,395 2,203,074 2016 $'000 91 746,073 45,609 404,243 386,879 175,003 66% 11% 22% 9% 11% 54% 8 2.99 57% 2015 $'000 90 696,480 114,656 303,448 304,418 172,219 62% 8% 19% 10% 12% 27% 6.8 2.05 54% 2014 $'000 78 678,558 101,941 319,965 320,078 203,878 63% 10% 22% 13% 8% 8% 5.6 1.75 62% 2013 $'000 83 646,791 58,503 323,702 327,914 140,025 65% 14% 25% 10% 13% 10% 5.6 1.8 48% 2012 $'000 77 540,775 117,362 285,269 290,537 100,031 58% 11% 25% 8% 13% -26% 6.3 1.76 35% 2011 $'000 44 420,142 161,589 1,341,478 1,284,816 90,925 51% 61% 101% 8% -10% 1.7 2.5 0% 2010 $'000 69 426,624 68,862 244,775 213,944 95,000 62% 13% 21% 8% 23% - - - - 2,974,866 3,003,565 2,056,612 1,937,771 1,964,420 1,775,297 1,579,382 1,456,944 1,288,850 1,140,743 1,270,502 66% 6% 6% 7% -1% -10% 25.8 6.19 34% 54% 6% 32% 6% 27% 104% 13.1 7.1 50% 63% 5% 15% 8% 6% 32% 12.6 3.54 68% 82% 11% 11% 10% -1% 0% 13.3 2.8 52% 6,383,438 7,321,875 3,650,625 2,887,500 3,083,438 2,114,063 1,804,688 1,856,250 1,815,000 2,578,125 Claims Incurred Underwriting Profit/(Loss) Profit Before Tax Profit After Tax Cash Dividends Shareholder’s Equity Loss Ratio Investment Return Return On Equity Dividend Yield On Average Equity Net Worth Movement Total Return To Shareholders P/E Ratio Closing Stock Price Dividend Payout Ratio Market Capitalization 12 | GENERAL ACCIDENT ANNUAL REPORT | 2020 Employees Claims Incurred Underwriting Profit/(Loss) Profit Before Tax Profit After Tax Cash Dividends Shareholder’s Equity Loss Ratio Investment Return Return On Equity Dividend Yield On Average Equity Net Worth Movement Total Return To Shareholders P/E Ratio Closing Stock Price Dividend Payout Ratio Market Capitalization 1,816,926 1,205,328 2020 $'000 205 1,445 259,536 193,812 222,668 66% 6% 6% 7% -1% -10% 25.8 6.19 34% 2019 $'000 132 442,136 770,154 651,558 142,684 54% 6% 32% 6% 27% 104% 13.1 7.1 50% 2018 $'000 131 8,735,797 1,023,022 174,768 352,569 285,370 150,047 2017 $'000 111 7,106,254 1,087,590 -35,532 236,077 221,236 200,001 63% 5% 15% 8% 6% 32% 12.6 3.54 68% 82% 11% 11% 10% -1% 0% 13.3 2.8 52% Gross Written Premiums 12,044,990 10,727,828 5,649,097 6,112,355 5,072,375 4,479,755 3,788,969 3,626,395 2,203,074 2016 $'000 91 2015 $'000 90 2014 $'000 78 2013 $'000 83 2012 $'000 77 2011 $'000 44 2010 $'000 69 2,974,866 3,003,565 2,056,612 1,937,771 1,964,420 1,775,297 1,579,382 1,456,944 1,288,850 1,140,743 1,270,502 746,073 45,609 404,243 386,879 175,003 696,480 114,656 303,448 304,418 172,219 678,558 101,941 319,965 320,078 203,878 646,791 58,503 323,702 327,914 140,025 540,775 117,362 285,269 290,537 100,031 420,142 161,589 1,341,478 1,284,816 90,925 426,624 68,862 244,775 213,944 95,000 66% 11% 22% 9% 11% 54% 8 2.99 57% 62% 8% 19% 10% 12% 27% 6.8 2.05 54% 63% 10% 22% 13% 8% 8% 5.6 1.75 62% 65% 14% 25% 10% 13% 10% 5.6 1.8 48% 58% 11% 25% 8% 13% -26% 6.3 1.76 35% 51% 61% 101% 8% -10% 1.7 2.5 0% 6,383,438 7,321,875 3,650,625 2,887,500 3,083,438 2,114,063 1,804,688 1,856,250 1,815,000 2,578,125 62% 13% 21% 8% 23% - - - - GENERAL ACCIDENT ANNUAL REPORT | 2020 | 13 14 | GENERAL ACCIDENT ANNUAL REPORT | 2020 OUR STRATEGIC FOCUS VALUE CREATION AND LONG-TERM SUSTAINABILITY GenAc provides risk transfer mechanisms to our customers, guided by 39 years of expertise and experience. We facilitate and support commerce by protecting the assets of people and businesses. Using sound investment decisions and a strategy of managed growth, we have built a strong balance sheet to ensure financial stability and strength. We create value for our shareholders, policyholders and employees while meeting all regulatory requirements. DISTRIBUTION CHANNELS Our head office is located in Kingston, Jamaica, and we write business through a network of valued insurance professionals islandwide. We have also embarked on a regional expansion programme and now offer our insurance products in Trinidad & Tobago and Barbados. We continue to look at other expansion opportunities within the Caribbean. FAST, FAIR CLAIMS SETTLEMENT We are committed to fast, fair claims settlement as a key element of efficient insurance services. We believe that the importance of insurance cover is tested at the time of a claim, and we seek to demonstrate to our clients that we are worthy of their trust and confidence. ROBUST RISK MANAGEMENT We have developed a comprehensive risk management framework to ensure risk tolerance limits are assessed and adhered to, particularly with regard to the acquisition of critical reinsurance support. UTILIZING INFORMATION TECHNOLOGY We have invested in continuous improvement of information technology to deliver simple, accessible online processes to our customers. We understand that ease of doing business brings a competitive advantage and we seek to ensure our customers receive the same superior level of service whether they contact us in person, by telephone or online. We place high priority on secure systems to handle payments, claims, new business and renewals. We believe our growing facility with data analytics allows us to respond quickly to changing markets for the benefit of our customers. DEVELOPING THE GENAC TEAM Insurance is a technical discipline and GenAc has a long history of recruiting, training and retaining expertise, providing all our employees with a culture of excellence and opportunity. We invest in the development of our staff members at every level by providing frequent training and mentorship programmes. MAXIMIZING OPERATIONAL EARNINGS Our growth and profitability 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. • Constant improvements in operational efficiencies to deliver excellent service to our policyholders. EMBRACING CORPORATE SOCIAL RESPONSIBILITY GenAc ensures its business model complies with the principles of good corporate citizenship. We are conscious of our impact on all aspects of society and we self-regulate our operations to make certain they benefit the economy, society and the environment. With the consistent guidance and expertise of our Board of Directors, we seek to: • Provide a productive, well-compensated and incentive- driven work environment for our employees. • Involve 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 ANNUAL REPORT | 2020 | 15 BRAND PROMISE Our values are at the heart of how we do business. They guide us in everything we do - from performing our regular daily responsibilities to making important decisions. PERFORMANCE We strive for service that exceeds customer expectations. INTEGRITY We are honest and fair in all our actions. RESPONSIBILITY We have a strong sense of responsibility towards our customers, society, the environment and each other. SOLID FOUNDATION We maintain financial strength to ensure consistent profitable growth. INNOVATION We are creative, willing to make bold decisions and challenge the status quo. 16 | GENERAL ACCIDENT ANNUAL REPORT | 2020 NOTICE OF ANNUAL GENERAL MEETING 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 15, 2021 at Liguanea Club, 5 Knutsford Blvd, Kingston 5, 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 Financial Statements for the financial year ended December 31, 2020. 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 Article of Incorporation of the Company and, being eligible, have consented to act on reappointment: (a) To reappoint Gregory Foster Director of the Board of the Company. (b) To reappoint Matthew Lyn Director of the Board of the Company. (c) To reappoint Duncan Stewart 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 year ended December 31, 2020 being $222,670,500.03 or 21.592 cents per ordinary share, as the final dividend for that year. Dated this the 16th day of June, 2021 by Order of the Board Geoffrey Messado DIRECTOR 18 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GOVERNANCE Paul B. Scott CHAIRMAN 22 | GENERAL ACCIDENT ANNUAL REPORT | 2020 General Accident navigated the impact of the Covid 19 pandemic in 2020 while continuing to execute our strategy of building a leading regional general insurance company. Our brand, our people and our relationships allowed General Accident to deliver outstanding, uninterrupted service to our broker partners, reinsurers and policyholders despite one of the most uncertain operating environments on record. In fact, General Accident grew gross written premiums by 12%, produced a 15% return on equity and distributed over $220 million of dividends to our shareholders. More importantly, we cemented our position as the largest underwriter of general insurance risks in Jamaica while building our emerging operations in Trinidad and Barbados. In 2020 our Jamaican property and motor insurance operations had another year of strong premium growth and profitability. The decline in General Accident’s consolidated profits reflects our decision to invest in the organic growth of our newer regional subsidiaries. While these investments may have a short-term impact on our financial results, they create considerable value and are in the long-term best interest of General Accident. Moreover, they involve considerably less risk than growing our General Accident through large acquisitions. The accelerated adoption of technology in our region triggered by the pandemic has validated our commitment to a regional strategy. Our presence in all three of the Caribbean’s largest insurance markets diversifies our underwriting risk and creates economies of scale. However, it also better enables General Accident to invest, develop and deploy digital insurance solutions. As we look forward our focus is on solidifying our market leadership in Jamaica, expanding our operations in Trinidad and Barbados and placing technology at the center of our operations. Sincerely, Paul B. Scott CHAIRMAN GENERAL ACCIDENT ANNUAL REPORT | 2020 | 23 CHAIRMAN’S REPORT 24 | GENERAL ACCIDENT ANNUAL REPORT | 2020 DIRECTORS’ REPORT The Directors are pleased to present their report for General Accident Insurance Company (Jamaica) Limited for the financial year ended December 31, 2020. The Directors to retire by rotation in accordance with the Articles of Incorporation are: Gregory Foster, Matthew Lyn and Duncan Stewart but being eligible, will offer themselves for re-election. FINANCIAL RESULTS The Statement of Comprehensive Income for the Group shows pre-tax profits for the year of $259.5 million, taxation of $65.7 million and a net profit after tax of $193.8 million. Details of these results, along with a comparison with the previous year’s performance and the state of affairs of the Group 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, 2020 are: P.B. Scott, Melanie Subratie, Sharon Donaldson, Gregory Foster, Geoffrey Messado, Christopher Nakash, Jennifer Scott, Nicholas Scott, Duncan Stewart, Matthew Lyn and Brian Jardim. 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 re-appointment. DIVIDEND A dividend of 21.592 cents per share paid on December 14, 2020, is proposed to be the final dividend in respect of the financial year ended December 31, 2020. GENERAL ACCIDENT ANNUAL REPORT | 2020 | 25 DIRECTORS’ PROFILES PAUL B. SCOTT (appointed November 1998) PB Scott is the Chairman, CEO and principal shareholder of the Musson Group. He joined the group in 1994, became CEO in 2004, and in 2009 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. He is a past President of the Private Sector Organization of Jamaica. SHARON DONALDSON (appointed March 2008) Sharon Donaldson has been the Managing Director of the Company since 2008. She holds a Bachelor of Laws (LL.B.) from the University of London and an MBA from the University of Wales. She is a Chartered Accountant; a fellow member of the Institute of Chartered Accountants of Jamaica and an Attorney-at-Law. Ms. Donaldson represents the local general insurance industry in discussions with the Financial Services Commission, is treasurer for the Council of the Institute of Chartered Accountants of Jamaica and heads the committee of Professional Accountants in Business. Ms. Donaldson is also a Director of Musson (Jamaica) Limited, the parent company to General Accident and Eppley Limited. She serves as a Director and mentor of 138 Student Living Limited and Paramount Trading Jamaica Limited. She is also a member of the Jamaica Anti-Doping Commission. CHA IR MAN MANAGING DIRECTOR 26 | GENERAL ACCIDENT ANNUAL REPORT | 2020 DIRECTORS’ PROFILES MELANIE SUBRATIE (appointed March 2002) Melanie Subratie is a non-executive Director of the Company and holds a B.Sc. (Hons)from the London School of Economics. She is Chairperson of the Investment Committee of the Board. Mrs. Subratie is Chairperson and CEO of Stanley Motta Ltd. and Vice Chairman of Musson (Ja.) Ltd. She is also the Vice Chair of Eppley Ltd. and sits on the Executive Board of the Seprod Group of Companies and all its subsidiary boards. She chairs the Audit Committee for both Productive Business Solutions Ltd and Seprod Ltd. She is Chairperson of Seprod Foundation, Musson Foundation, Jamaica Girls Coding and RISE Life Management. Mrs. Subratie is an Angel investor and sits on the Boards of LoanCirrus, Bookfusion, and First Angels. She is fourth Vice President of the Jamaica Chamber of Commerce. GEOFFREY MESSADO (appointed May 2001) 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. DEPUTY CHAIRMAN Mr. Messado is a Chartered Accountant, FCA, FCAA, ATII and a Justice of the Peace for St. Andrew. NON EXECUTIVE DIRECTOR JENNIFER SCOTT (appointed December 2009) Jennifer Scott is a non-executive Director 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 financial securities and corporate law. NON EXECUTIVE DIRECTOR GENERAL ACCIDENT ANNUAL REPORT | 2020 | 27 DIRECTORS’ PROFILES NON EXECUTIVE DIRECTOR INDEPENDENT NON EXECUTIVE DIRECTOR NICHOLAS A. SCOTT (appointed July 2011) 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 Ltd. 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 MBA (Beta Gamma Sigma) from Columbia Business School and a MPA from the Harvard Kennedy School of Government. DUNCAN STEWART (appointed August 2011) Duncan Stewart is an independent, non-executive Director of the Company. He 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) Christopher Nakash is an independent non-executive Director 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. INDEPENDENT NON EXECUTIVE DIRECTOR 28 | GENERAL ACCIDENT ANNUAL REPORT | 2020 DIRECTORS’ PROFILES GREGORY ST. HUGH FOSTER (appointed April 2018) Gregory Foster is an executive Director of the Company and a member of the Audit Committee of the Board. He serves as the Group’s Chief Operating Officer. He obtained his Association of Chartered Certified Accountant (Glasgow, UK) professional qualification in 2006, and is also a member of Institute of Chartered Accountants of Jamaica. BRIAN JARDIM (appointed August 2017) Brian Jardim is an independent non-executive Director of the Company. He is the founder and CEO of Rainforest Seafoods Ltd., the leading seafood harvester, processor and distributor in the Caribbean. Mr. Jardim currently serves as a director on the Board of the Jamaica Observer, We Care for Cornwall Regional Hospital, and 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. He also holds a Diploma in Business Administration from Ryerson University. MATTHEW LYN (appointed July 2015) Matthew Lyn is an independent non-executive Director 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. EXECUTIVE DIRECTOR INDEPENDENT NON EXECUTIVE DIRECTOR INDEPENDENT NON EXECUTIVE DIRECTOR GENERAL ACCIDENT ANNUAL REPORT | 2020 | 29 CORPORATE GOVERNANCE REPORT CORPORATE GOVERNANCE The Group’s Corporate Governance structure is designed to support the transparency and accountability of the people and processes in the Group as it expands its reach in the region. We believe that Corporate Governance in the Group is purpose focused and executed at a high stan- dard, considering both local corporate governance prac- tices and key aspects of global best practices. The Group’s corporate governance standards reflect the key tenets of responsibility, integrity, prudence, transparency and fair and equitable decision making. The members of the Board of Directors and those entrusted with administering our Corporate Governance embody diversity, experience, and proven excellence in their fields. Our Directors and Committees are aligned behind the strategic and corporate objectives set by management and are tasked with monitoring and ensuring that the efforts of all stakeholders support those objectives. The Board is composed to promote independence. The Board is comprised of eleven (11) members, a non-executive Chairman, eight (8) non-executive directors and two (2) executive directors. that the company conducts its affairs responsibly and in keeping with our values and the broad requirements of the Regulators. The Conduct Review Committee compris- es of three (3) directors. The committee meets at least three (3) times a year. THE AUDIT COMMITTEE The committee is responsible for providing oversight and advice to the Board on all matters relating to financial reporting, internal controls, and approval of financial reports to be circulated to all regulatory bodies. The Audit Committee Comprises of three (3) non- executive directors and one (1) executive director. The Audit Committee meets at least five (5) times for the year. INVESTMENT AND LOAN COMMITTEE The Committee is responsible for driving the Group’s investment strategy and ensuring that the strategy meets all compliance requirements, inter alia, liquidity, quality, and term of investments. The committee also ensures that any material financial arrangement meets regulatory standards and fits the credit risk appetite of the Company. In 2020 Board meetings were held both virtually and in person throughout the year. The Investment and Loan Committee comprises of (3) non-executive directors and one (1) executive director. THE COMPENSATION COMMITTEE The Compensation Committee is responsible for oversight of executive remuneration packages. These packages are designed to reward performance and incentivize growth and are driven by the core organization objectives and in alignment with necessary risk considerations. The committee meets at least four (4) times for the year. BOARD AND COMMITTEE MEETINGS In 2020 Board and Committee meetings were held virtually as much as possible. The committees and members continued to fulfill their mandate to the Group. THE CONDUCT REVIEW COMMITTEE The committee has responsibility for oversight of, and ad- vice to the Board on, policies and procedures to ensure Committee meetings are held at least four (4) times each year and more often if warranted. 30 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2019 | 31 LEADERSHIP AND OPERATIONS SENIOR LEADERSHIP TEAM CEO & MANAGING DIRECTOR SHARON DONALDSON Sharon Donaldson has been with the company for over 30 years, first joining as the Financial Controller in 1989 before becoming the Managing Director and CEO in 2008. Sharon’s primary responsibilities include making major corporate decisions, managing the overall operations and resources of the Group and acting as the main point of communication between the Board of Directors and corporate operations. CHIEF OPERATING OFFICER GREGORY FOSTER Gregory Foster is GenAc’s Chief Operating Officer with responsibility for the underwriting, claims and AutoSmart divisions. Mr. Foster joined GenAc in 2014 with a strong background as an audit manager and has held his current position since January 2019. 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. CEO - TRINIDAD & TOBAGO NATASHA PETTIER Natasha Pettier is the Chief Executive Officer of General Accident Insurance Company Trinidad and Tobago Limited. She joined the Company in October 2019 as head of underwriting and insurance operations. She holds a Bachelor of Laws (LL.B.), an MBA from the Heriot-Watt University, UK, is a Fellow of the Chartered Insurance Institute of London, a qualified Member of the Institute of Risk Management and a Health Insurance Associate. She has over 20 years’ experience in the insurance industry and is involved with various committees of both the Association of the Trinidad and Tobago Insurance Companies and the Trinidad and Tobago Insurance Institute. 32 | GENERAL ACCIDENT ANNUAL REPORT | 2020 WANDA MAYERS GENERAL MANAGER - BARBADOS Wanda Mayers is the General Manager of General Accident Insurance Company (Barbados) Limited. Her experience in general insurance includes customer service, marketing, reinsurance underwriting and claims. After becoming the Associate of the Chartered Insurance Institute (ACII) in the United Kingdom, she rose in the ranks at the Insurance Corporation of Barbados Limited, from Supervisor of the Reinsurance Department in 1993 to Assistant Vice President of Direct Underwriting and Customer Experience in 2015. Her managerial experience was strengthened at Sagicor General Insurance Inc., as Vice-President for Underwriting in Barbados, ending in 2018. Myers has tutored various subjects at the Insurance Institute of Barbados and has served as Director of several companies in the public and private sector. LESLEY MILLER CHIEF INFORMATION OFFICER Lesley Miller joined GenAc as Chief Information Officer in January 2018 with responsibility for technology, business intelligence and digital marketing, bringing over 15 years’ experience in the insurance and telecommunications industries to the Company. Mrs. Miller holds a Bachelor of Science degree in Computing & Information Technology from the University of Technology (Jamaica) and an MBA in Banking and Finance from the University of the West Indies. She is a certified Project Management Professional and is a member of the Doctor Bird Chapter of the Project Management Institute. LINDSAY GONSALVES CHIEF FINANCIAL OFFICER - TRINIDAD & TOBAGO Lindsay Gonsalves has long experience in the fields of auditing, insurance and management consulting. He joined the Company in September 2018 as Chief Financial Officer and a Director of the GenacTT Insurance Board. Mr. Gonsalves holds an ACCA degree and is a fellow member of the ACCA of England and Wales. He is a member in practice of the Institute of Chartered Accountants of Trinidad & Tobago, holds a Practicing Certificate and became a Fellow of the Association in 1992. JAMALDA STANFORD-BROWN BUSINESS DEVELOPMENT OFFICER Jamalda Stanford-Brown joined GenAc as Business Development Officer in January 2018. She has a wealth of experience in auditing, risk assessment and reinsurance. Mrs. Stanford-Brown holds 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. GENERAL ACCIDENT ANNUAL REPORT | 2020 | 33 MANAGEMENT TEAM CAREEN NOLAN Head of Property & Casualty Division ANGELLA REYNOLDS Underwriting Consultant TRACEY-ANN THOMPSON Underwriting Manager (Property & Casualty Division) PETAGAYE MCCOOK Legal Services Manager CAROL BARNETT Claims Manager JANILLE JARRETT Underwriting Manager (Motor Division) 34 | GENERAL ACCIDENT ANNUAL REPORT | 2020 MANAGEMENT TEAM JOAN MCLEGGON Chief Human Resource Officer CHERYLL HENRY Operations & Facilities Manager DOUGLAS HAYDEN Information Technology Manager TANYA OAKLEY Business Intelligence Manager JANETTE COLE-SMITH Finance & Compliance Manager GENERAL ACCIDENT ANNUAL REPORT | 2020 | 35 AGENT NETWORK BARBARA SAMUELS Kingston CADDINE WILLIAMSON Mandeville , Manchester MARLENE DUFFUS Kingston DEBRA REID-GIBBS Portmore, St. Catherine ORAL MYLES Sav-la-mar, Westmoreland CHERRICE BROWN Ocho Rios, St. Ann ROCHELLE CLARKE Sav-la-mar, Westmoreland MARLON CREARY Kingston 36 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 37 MANAGEMENT DISCUSSION AND ANALYSIS 38 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 38 PROFITABILITY The COVID-19 pandemic had a devastating economic and social impact on the entire Caribbean region, beginning in first quarter 2020 and continuing for the entire year. The insurance industry was not immune to this unprecedented threat and saw significant deterioration in market vibrancy, especially in those islands heavily dependent on tourism. The region was also affected by low vaccine availability and relatively high levels of vaccine hesitancy. All three islands have had to grapple with business lockdowns, layoffs, curfews, work from home orders leading to a significant economic contraction. This in turn required unplanned expenditure in extending digital networks, renovating new office space to accommodate distancing requirements and facilities for remote working. GENERAL ACCIDENT ANNUAL REPORT | 2020 | 39 MANAGEMENT DISCUSSION AND ANALYSIS CON’T by the uptick in new business revenue. During the year we successfully navigated, the installation of a new CEO, a name change, a rebranding exercise, and the major milestone of expanding our range of insurance products beyond the traditional motor class of business. We received approval from the Central Bank of Trinidad and Tobago to write seventeen (17) new lines of business and with support from our panel of reinsurers, we welcome the opportunity to become a major general insurance provider in the region. Genac Barbados was granted an operating licence in April 2020 and commenced operations in May 2020. The formal launch and marketing plans for the company’s first year had to be postponed due to the pandemic, and the focus shifted to building a stable and balanced portfolio through broker relationships. Initial results were buoyed by group businesses along with a growing portfolio of direct personal lines business, but the sluggishness of the economy and COVID-19 operating restrictions made brand penetration difficult. The financial year closed with revenue of $60.0 million for the eight (8) months of operation. This was well below budgeted expectations and significant start-up costs led to a loss of $34.0 million for 2020. As a new entrant in two islands, part of our competitive advantage is the streamlined business processes resulting from the investment in digitization made in 2020. This positions us comfortably for a more efficient and cost effective 2021. We will leverage our market reach, digital capabilities, and financial strength to capitalize on opportunities to provide a full suite of insurance products to the Caribbean. The year under review was the first year the consolidated results for the entire group included the 12-month operations of GenAcTT and the 9-month operations of GenAc Barbados. The pandemic retarded the projected progress of both companies, including the curtailment of marketing initiatives and the physical upgrade of several of our primary location which had been planned for early 2020. Despite adherence to disciplined underwriting and robust claims processing, the failure to make premium budgets, increased motor losses in Jamaica and pandemic- related expenses in all territories produced a below budget performance for the group in 2020. The General Accident Group produced a consolidated profit before tax of $259.5 million, 34% lower than 2019. Despite the extremely challenging economic environment, the group did produce an underwriting profit of $1.4 million, compared to $442.1 million in 2019 and a net profit of $194.0 million compared to $652.0 million in the prior year, a significant reduction in profitability. It is worth noting, however, that 2019’s results included one off gains on acquisition amounting to $130.0 million. Notwithstanding COVID-19’s devasting impact on regional economies, we maintained a high level of flexible customer service, expanded digital competence and avenues, and provided effective communication for customers and stakeholders. General Accident Jamaica produced revenue of $11.6 billion, up on prior year of $10.6 billion; underwriting profit of $175.6 million down on prior year of $377.0 million; net profit of $393.4 million also fell below prior year of $445.0 million. GenacTT produced revenue of $393.0 million and a net loss of $125.7 million in its first full year of operation. Although performance fell below budget, we are encouraged 40 | GENERAL ACCIDENT ANNUAL REPORT | 2020 NET PROFIT OVER FIVE YEARS $’000 651,558 387,879 221,236 285,370 193,812 2016 2017 2018 2019 2020 UNDERWRITTEN PROFIT/(LOSS) OVER FIVE YEARS $’000 442,136 174,768 45,609 2016 2017 2018 2019 2020 1,445 FINANCIAL PERFORMANCE HIGHLIGHTS Genac Group • Nineteen years of consistent premium growth • Profit for the year of $194.0 million • Earnings per share of $0.24 • Book value of $2.97 billion • Annualized return on equity of 6.5% Genac Jamaica • 19 years of premium growth • Profit for the year of $393.4 million • Earnings per share of $0.38 • Book value of $2.57 billion • Annualized return of 8.0% Profit attributable to shareholders was $193.8 million in 2020. We paid dividends amounting to $222.7 million in the year under review. (35,532) INVESTMENT INCOME In contrast to the technical income, investment income increased by 28% to $294.0 million, up from $230.0 million. We are pleased that we were able to produce a return on investment (ROI) of 5.0%. During the year, the investment portfolio generated total recognized gains of $266,737 million with a loss of $27.5 million reported in Other Comprehensive Income. FINANCIAL STRENGTH We continue to enjoy investor confidence as although the company’s market capitalization dipped below prior year market cap of $7.3 billion, nevertheless remains fairly strong at $6.46 billion. The General Accident Group is well capitalized with an equity book value of $3.0 billion, which remains reasonably stable despite the negative headwinds of 2020. Total assets of $11.2 billion saw a marginal increase of 2%, up from $11.0 billion and Cash and Cash Equivalent were $756.5 million compared to $642.3 million in 2019. NET PROFIT OVER FIVE YEARS $’000 651,558 387,879 221,236 285,370 193,812 2016 2017 2018 2019 2020 UNDERWRITTEN PROFIT/(LOSS) OVER FIVE YEARS $’000 442,136 174,768 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 41 45,609 1,445 2016 2017 2018 2019 2020 (35,532) MANAGEMENT DISCUSSION AND ANALYSIS CON’T CAPITAL MANAGEMENT The company manages its capital to maximize long term shareholder value while maintaining financial strength. We aim to meet regulatory and solvency ratios consistently. Our policy is to allocate capital to investment opportunities earning the highest risk adjusted returns, as we seek to maintain a balance between higher returns and the security of a sound capital position. We are pleased to report that we met the regulatory capital and liquidity requirements for all entities for 2020. Description Benchmark Actual Jamaica MCT 200.80% 240.40% Trinidad & Tobago Solvency Margin Barbados Solvency Margin 250,000 TTD 34.1M TTD 500,000 BBD 2.03M BBD LOOKING AHEAD For the entire year and throughout the region, coun- try-specific COVID-19 containment measures resulted in reduced operating hours for most companies, closure of schools, which in turn caused childcare difficulties for employees, internet access limitations and other chal- lenges that negatively impacted our performance. Inter- national travel restrictions adversely affected tourism and other businesses, which led to reduced demand for insurance products. At the start of 2021, we have seen a gradual recovery of Caribbean economies and we anticipate that this will lead to increased demand of our products. We remain committed to delivering our strategic objectives. We look ahead with confidence and enthusiasm as we believe we have the right approach, culture, and products to compete in a new digitized, customer-focused marketplace. We believe we will be able to achieve robust financial performance and satisfied policyholders by completing the digital transformation that is already well underway. I would personally like to extend sincere thanks to the Board of Directors for providing insight, guidance and support to the management and staff. To the hardworking staff members in all three islands, my heartfelt gratitude and appreciation to you for your commitment to the success of the company. To our brokers and insureds, thank you for the confidence you have placed in us. We take our brand promise of excellence seriously and will continue to deliver value to our customers, employees, business partners and shareholders. Sharon Donaldson MANAGING DIRECTOR 42 | GENERAL ACCIDENT ANNUAL REPORT | 2020 RISK MANAGEMENT We are subject to extensive and increasing regulation under the Insurance Act that imposes limits on the types of investment that we can hold, prescribes solvency and The Company has a Board approved Risk Management Framework, which identifies risk appetite and the major accounting and internal controls standards, and requires risk outcomes that pose a threat to the achievement of us to hold adequate reserves. GenAc’s strategic objectives. Risk governance is supported General Accident has, a governance system designed to satisfy all insurance regulation. The significant elements Risks are monitored monthly and reported under a number include risk management, compliance, audit and actuarial of headings along with our mitigation approach. functions. At the group level risk management is a part of our integrated Risk Management Policy. These are set out below: by an internal Risk Committee. TYPE OF RISK RISK DETAIL APPROACH UNDERWRITING RISK Adverse claims development. • The Company adopts prudent reserve practices as we maintain reserves equal to our estimated ultimate liability losses and loss adjustment expenses. Inadequate premiums. • We ensure risks are priced appropriately by regular review of underwriting results. • We practice effective diversification of risks. LIQUIDITY RISK The risk of insufficient cash flows to meet settlement obligations as they fall due. • We use cash flow forecasting. • We maintain sufficient liquid assets at required levels to meet our obligations at all times. OPERATIONAL RISK The risk of failure of internal processes and systems and loss of or inadequate human resources. • We carry out frequent review of internal processes to identify vulnerabilities. • We have in place a structured programme for building our staff members capacity. REGULATORY CAPITAL The risk of not meeting regulatory benchmarks. • We carry out frequent modelling of the company’s capital components to ensure transaction decisions are made in such a way to avoid a drag on capital ratio. MARKET RISK The risk of economic losses on our investment portfolio resulting from price changes in capital markets. • A diversified portfolio lies at the heart of our strategy. Investment duration and currency are managed to avoid any mismatch of assets and liabilities, whilst earning the maximum return at an acceptable level of risk. • We use appropriate limits and early warning ratios in our asset liability management to manage market risk. CREDIT RISK The risk arising from the likely default as a result of changes in the financial position of a counterparty. • We manage credit risk by reviewing the balance sheet of counter parties in addition to using available market data to determine default probabilities. GENERAL ACCIDENT ANNUAL REPORT | 2020 | 43 THE RISK COMMITTEE The Risk Committee is responsible for examining major risks faced by the Company for both assets and liabilities, reviewing tools for monitoring and controlling such risks by using outside risk experts when necessary. The Committee examines the main technical and financial underwriting commitments, claims reserving, risk concentration, counterparty limits, liquidity and operational risks, as well as relevant changes 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. CORPORATE SOCIAL RESPONSIBILITY GENERAL ACCIDENT ANNUAL REPORT | 2020 | 45 CORPORATE SOCIAL RESPONSIBILITY The COVID-19 pandemic reached Jamaica’s shores in March 2020, and in GenAc’s 10th year as a publicly-traded company, ushering in a year of unprecedented hardship for everyone. Despite the business challenges, GenAc looked for opportunities to continue our commitment to national development through sports, education and protection of the environment, with the full support of our staff, management and Board of Directors. Here are the highlights: PSOJ COVID RELIEF As part of the Musson Group of Companies, GenAc contributed to the Private Sector Organisation of Jamaica’s (PSOJ) COVID-19 Relief Effort. GenAc, through the Musson Group Foundation donated $1,250,000 towards the purchase of vitally needed ventilators deployed throughout the public health system. JAMAICA CANCER SOCIETY DONATION The GenAc staff made a sizable contribution to Jamaica Cancer Society in October 2020 from the sale of masks and other donations. The handover of $95,000 was in support of prostate and breast cancers awareness programmes, promoting health and wellness for Jamaicans. Jamaica Cancer Society’s (JCS) Acting Executive Director Michael Leslie receives the donation from Colesha Mahoney. 46 | GENERAL ACCIDENT ANNUAL REPORT | 2020 Colesha Mahoney presents a donation to the Jamaica Cancer Society’s (JCS) Fundraising and Public Relations Officer Shullian Brown. MAISIE GREEN LEARNING CENTRE DONATION GenAc continued its support of the Maisie Green Learning Centre on Grants Pen Road during the year under review. GenAc provided the early childhood development centre with a desktop computer, hand sanitiser and a refillable dispenser, thermometers, masks, reusable cups and cutlery among other items. The GenAc team toured the facilities and inspected previous renovations including the painted classrooms, the kitchen facilities, and the newly introduced isolation room as the school seeks to comply with Ministry of Education, Youth and Information COVID-19 Safety protocols. GenAc donated supplies of hand sanitiser, a refillable dispenser, thermometer, masks, reusable cups, and flatware to the Maisie Green Learning Centre on Grants Pen Road on October 1, 2020. GenAc’s Colesha Mahoney (left) and Kerry-Ann Turnbull (centre) present Maisie Green Learning Centre Principal Charmaine Ben- nett with the computer and other items donated to the school on October 1, 2020. READ ACROSS JAMAICA DAY TIn observance of the National Read Across Jamaica Day 2020, GenAc staff participated in virtual reading sessions with children. During Education Week, held under the theme “Promoting Digital Transformation and Positive Values & Attitudes — Imperatives for Redefining 21st Century Education”, there were virtually readings of various Jamaican authored children’s books by GenAc staff members and shared with students of the Drews Avenue Primary school. GENERAL ACCIDENT ANNUAL REPORT | 2020 | 47 Maisie Green Learning Centre Principal Charmaine Bennett gratefully holds the advanced desktop computer donated by GenAc on October 1, 2020. The readings were also streamed live on GenAc’s Instagram and Facebook pages. This collection of carefully selected Caribbean stories and beautiful work highlighted local artists and illustrators for their appeal to young boys and girls. GenAC also partnered with the Early Childhood Commission on two major reading initiatives: ‘Read Across the Parish’ and ‘Read Pon Di Cawna’. It is important that communities we support not only benefit from the financial support of General Accident but also from the skills, teamwork and dedication of our staff. Human resources officer Kerry-Ann Turnbull shows off Boonoonoonous Hair written by Olive Senior and illustrated by Laura James. 48 | GENERAL ACCIDENT ANNUAL REPORT | 2020 Broker Services Representative, Chris-Ann Nunes reads Bolo the Moneky written by Jonathan Burke and illustrated by Nicholas Martin. JAMAICA ENVIRONMENT TRUST DONATION GenAc donated $500,000 towards the operations of the Jamaica Environment Trust (JET) on Earth Day in April 2020. In recent years, the company has challenged its staff members to reduce their environmental impact by utilising reusable water bottles and washable lunch boxes instead of single-use plastics and Styrofoam containers, minimising office waste, and limiting the use of printers. These strategies continued in 2020 and were not only environmentally friendly but also resulted in the company reaping savings. HONOURABLE MENTIONS GenAc also supports the following organisations and activities: • • • • • University of Technology Jamaica Jamaica Stock Exchange Institute of Chartered Accountants (ICAJ) Rotary Club of Liguanea Plains Insurance Association of Jamaica EMPLOYEE ENGAGEMENT INTERNATIONAL WOMEN’S DAY International Women’s Day (IWD) provides GenAc with an opportunity to empower one another and recognise the hard work and accomplishments of women in the workplace. In honour of IWD female team members were serenaded and treated by our male team members. The effects of the 2020 global pandemic did not dampen the enthusiasm and morale of our dedicated staff. In the absence of physical awards and team building, the company transitioned to online lymes, virtual rewards and recognition fora, and online team challenges to ensure that this critical component of staff engagement was not lost. Team building activities were scheduled virtually to maintain social cohesion across the organization. GenAc firmly believes that employee recognition helps to create a positive workforce culture and employee experience. SIGMA CORPORATE RUN Our staff were able to contribute to the Sigma Corporate Run in February 2020 through their participation. This is our sixth year supporting the Run which raised $52 million for the Savanna-La-Mar Public General Hospital, Bustamante Hospital for Children and the Clifton Boys’ Home. GENERAL ACCIDENT ANNUAL REPORT | 2020 | 49 MOTHER’S DAY We highlighted our team members’ recollections of the life-changing role as ‘mother’. The enduring, and critical role of motherhood (biological and adoptive) was shared to the GenAc team for Mother’s Day. PINKTOBER During Breast Cancer Awareness month, GenAc’s social media pages highlighted the importance of self-checks as part of early detection of breast cancer. GRAND MARKET Our multi-talented employees were able to showcase their goods at a Grand Market held during the Christmas season. The display at our Kingston location featured their goods of farm produce, soaps, juices, baked goods, accessories, make-up and designer bags for sale. The company continues to encourage work life balance. To close the curtains on the Christmas season, the staff celebrated with a day of giving by donating non-perishable items, to be given to the Mustard Seed Communities. REMOTE WORKING AND TRAINING The COVID-19 pandemic encouraged the implementation of flexible work arrangements for all staff members including a shift system to ensure that social distancing was maintained. To facilitate the transition to remote working, GenAc provided customised training on maintaining work life balance, health and wellness. With the implementation of flexible work arrangements GenAC also contributed to our sustainability efforts by reducing carbon emissions. 50 | GENERAL ACCIDENT ANNUAL REPORT | 2020 DISCLOSURE OF SHAREHOLDINGS TOP 10 SHAREHOLDERS AS AT DECEMBER 31, 2020 NAME NO. OF UNITS PERCENTAGE Musson Jamaica Ltd. 824,999,989 80.00 Mayberry Jamaican Equities Ltd. 19,642,677 Mayberry Managed Clients Account 15,032,119 Apex Pharmacy QWI Investments Ltd. Lancedale Farquharson PAM – Pooled Equity Fund 10,000,000 9,343,293 7,836,138 7,550,000 JCSD Trustee Services – Barita Unit Trust 5,434,786 Sagicor Select Funds Ltd K. Chandiram Ltd. 5,066,798 4,331,450 1.90 1.46 0.97 0.91 0.76 0.73 0.53 0.49 0.42 52 | GENERAL ACCIDENT ANNUAL REPORT | 2020 DIRECTORS’ SHAREHOLDINGS AS AT DECEMBER 31, 2020 NAME Musson Jamaica Ltd. Paul B. Scott Melanie Subratie Sharon Donaldson Junior Levine Gregory Foster Geoffrey Messado Duncan Stewart Deborah Stewart Diane Stewart Christopher Nakash Nicholas Scott Matthew Lyn Jodi Lyn COMBINED HOLDINGS PERCENTAGE 824,999,989 80.000 3,748,700 0.3635 350,000 1,000,000 2,475,190 1,698,020 1,980,198 96,500 0.0340 0.0970 0.2400 0.1647 0.1920 0.0094 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 53 SENIOR LEADERSHIP AND MANAGEMENT TEAM SHAREHOLDINGS AS AT DECEMBER 31, 2020 NAME Cheryll Henry Lesley Miller Martin Miller Leslie Daley Jamalda Stanford Janille Jarrett Tracey-Ann Thompson COMBINED HOLDINGS 159,445 307,233 92,857 25,000 50,000 PERCENTAGE 0.0155 0.0294 0.0090 0.0024 0.0048 54 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 55 CORPORATE DATA COMPANY PROFILE DIRECTORS: • P.B. Scott, Chairman • Melanie Subratie, Deputy Chairman • Sharon Donaldson, Managing Director • 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 Ltd . • National Commercial Bank ATTORNEYS: • Nunes Scholefield & DeLeon & Co: 6A Holborn Road Kingston • DunnCox 48 Duke Street, Kingston REGISTERED OFFICE: • 58 Half Way Tree Road, Kingston Telephone No: (876) 929-8451 Fax No: (876) 929-1074 Email: info@genac.com Website: www.genac.com CORPORATE DATA CONTACT INFORMATION JAMAICA • Kingston & St. Andrew 58 Half Way Tree Road, Kingston Telephone : (876) 929-8451 • Montego Bay Unit 8, Summit Business Center Fairview, Montego Bay, St. James TRINIDAD • General Accident Insurance Company Trinidad and Tobago Limited Cor. French Street & Ariapita Avenue, Woodbrook, Port of Spain Trinidad, W.I. Telephone: (868) 622-7292 (868) 622 -5614 (868) 622-8500 BARBADOS • General Accident Insurance Company Barbados Limited Suite 8, Dome Mall, Warrens, St. Michael BB22026 Telephone: (246) 257-3392 GENERAL ACCIDENT INSURANCE COMPANY JAMAICA LIMITED 31 December 2020 FINANCIAL STATEMENTS Actuary’s Report Independent Auditor’s Report to the Members Financial Statements 68 69 70 Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity 71 - 72 Consolidated statement of cash flows 73 74 75 Company statement of comprehensive income Company statement of financial position Company statement of changes in equity 76 - 77 Company statement of cash flows 78 - 158 Notes to the financial statements GENERAL ACCIDENT ANNUAL REPORT | 2020 | 59 60 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 61 62 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 63 64 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 65 66 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 67 68 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 69 70 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 71 72 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 73 74 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 75 76 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 77 78 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 79 80 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 81 82 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 83 84 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 85 86 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 87 88 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 89 90 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 91 92 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 93 94 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 95 96 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 97 98 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 99 100 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 101 102 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 103 104 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 105 106 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 107 108 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 109 110 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 111 112 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 113 114 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 115 116 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 117 118 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 119 120 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 121 122 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 123 124 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 125 126 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 127 128 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 129 130 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 131 132 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 133 134 | GENERAL ACCIDENT ANNUAL REPORT | 2020 General Accident Insurance Company Jamaica Limited Notes to the Financial Statements 31 December 2020 (expressed in Jamaican dollars unless otherwise indicated) 15. Taxation (a) The Group’s shares were listed on the Junior Market of the Jamaica Stock Exchange, effective 21 September 2012. Consequently, the Group is entitled to a remission of tax for ten (10) years in the proportions set out below, provided the shares remain listed for at least 15 years: Years 1 to 5 100% Years 6 to 10 50% The financial statements have been prepared on the basis that the Group will have the full benefit of the tax remissions. Subject to agreement with the Minister of Finance and Planning, the income tax payable for which remission has been granted is $66,441,000 (2019 - $83,364,000). (b) Taxation is based on the profit for the year adjusted for taxation purposes and represents income tax at 25% - 33 ⅓%: Deferred income tax (Note 29) (6,883) 37,789 (5,357) 65,724 118,596 61,083 (c) The tax charge on the Group’s profit differs from the theoretical amount that would arise using the statutory Current income tax Prior year over accrual tax rate as follows: Profit before tax Tax calculated at applicable tax rate Adjusted for the effects of: Income tax remission Income not subject to tax Expenses not deductible for tax Unutilised tax losses Prior year under accrual Adjustment to prior year deferred tax The Group The Company 2020 $'000 2019 $'000 2020 $'000 2019 $'000 72,607 85,606 66,440 83,364 - (4,799) - - 7,131 90,495 The Group The Company 2020 $'000 2019 $'000 2020 $'000 2019 $'000 259,536 770,154 454,487 535,836 The Group The Company 2020 $’000 114,575 2019 $’000 256,718 2020 $’000 151,492 2019 $’000 178,612 (66,441) (54,551) 19,075 43,499 - - (83,364) (66,441) (83,364) (44,296) (41,193) 3,763 12,295 - (4,799) 2,134 - - - (4,930) 61,083 (1,032) 3,763 - - 2,134 (9,618) 90,495 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 135 Net effect of other charges and allowances 9,567 (11,560) 65,724 118,596 136 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 137 138 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 139 140 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 141 142 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 143 144 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 145 146 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 147 148 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 149 150 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 151 152 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 153 154 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 155 156 | GENERAL ACCIDENT ANNUAL REPORT | 2020 GENERAL ACCIDENT ANNUAL REPORT | 2020 | 157 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 am on September 15, 2021, at Liguanea Club, 5 Knutsford Blvd, Kingston 5 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 Vote for or against (tick as appropriate) ORDINARY RESOLUTIONS 1. To receive the report of the Board of Directors and the audited accounts of For Against the Company for the year ended December 31, 2020. 2. To authorize the Board of Directors to re-appoint PwC as the Auditors of the For Against 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 Gregory Foster as a Director of the Board of the Company. 3. (b) To re-appoint Matthew Lyn as a Director of the Board of the Company. For Against 3. (c) To re-appoint Duncan Stewart as a Director of the Board of the company. For Against 4.(a) To Authorise the Board of Directors to fix the remuneration of the Directors. For Against 5. To approve the aggregated amount of interim dividends declared by the For Against Board during the financial year ended 31st December 2020, being $222,670,500.03 or 21.592 cents per ordinary share, as the final dividend for the year. Signed this day of 2021: 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) 158 | GENERAL ACCIDENT ANNUAL REPORT | 2020 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 am on September 15, 2021, at Liguanea Club, 5 Knutsford Blvd, Kingston 5 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 Vote for or against (tick as appropriate) ORDINARY RESOLUTIONS 1. To receive the report of the Board of Directors and the audited accounts of the Company for the year ended December 31, 2020. 2. To authorize the Board of Directors to re-appoint PwC as the Auditors of the Company and to fix their remuneration. For Against For Against 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 Gregory Foster as a Director of the Board of the Company. 3. (b) To re-appoint Matthew Lyn as a Director of the Board of the Company. For Against 3. (c) To re-appoint Duncan Stewart as a Director of the Board of the company. For Against 4.(a) To Authorise the Board of Directors to fix the remuneration of the Directors. For Against 5. To approve the aggregated amount of interim dividends declared by the For Against Board during the financial year ended 31st December 2020, being $222,670,500.03 or 21.592 cents per ordinary share, as the final dividend for the year. Signed this day of 2021: 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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