GENERAL ACCIDENT ANNUAL REPORT | 2019 | 1
TABLE OF CONTENTS
TABLE OF CONTENTS
GENERAL ACCIDENT AT A GLANCE
CORPORATE SOCIAL RESPONSIBILITY
Our Purpose
Our Vision
Corporate Structure
Key Financial Highlights
• Earnings per share
• Consistent Shareholder Dividend
• Stock Prices
10 - Year Statistical Review
Our Strategic Focus
5
6
7
9
11
NOTICE OF ANNUAL GENERAL MEETING
14
Notice of Annual General Meeting
GOVERNANCE
Chairman’s Report
Directors’ Report
Directors’ Profiles
Corporate Governance Report
18
19
21
25
LEADERSHIP AND OPERATIONS
Senior Leadership Team
Management Team
Regional Management Team
Agent Network
Management Discussion and Analysis
Risk Management
Risk Committee
27
29
31
33
35
40
41
43
46
49
50
51
64
65
66
67
69
70
71
72
74
Corporate Social Responsibility
Employee Engagement
DISCLOSURE OF SHAREHOLDINGS
Top 10 Shareholders
Directors’ Shareholdings
Senior Leadership and Management Shareholdings
CORPORATE DATA
53
54
Company Profile
Contact Information
• Jamaica
- Kingston
- Montego Bay
• Trinidad
• Barbados
FINANCIAL STATEMENTS
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 to the Financial Statements
PROXY FORM
TABLE OF CONTENTS
GENERAL ACCIDENT AT A GLANCE
CORPORATE SOCIAL RESPONSIBILITY
Our Purpose
Our Vision
Corporate Structure
Key Financial Highlights
• Earnings per share
• Consistent Shareholder Dividend
• Stock Prices
10 - Year Statistical Review
Our Strategic Focus
NOTICE OF ANNUAL GENERAL MEETING
Notice of Annual General Meeting
14
GOVERNANCE
Chairman’s Report
Directors’ Report
Directors’ Profiles
Corporate Governance Report
LEADERSHIP AND OPERATIONS
Senior Leadership Team
Management Team
Regional Management Team
Agent Network
Management Discussion and Analysis
Risk Management
Risk Committee
5
6
7
9
11
18
19
21
25
27
29
31
33
35
40
41
43
46
Corporate Social Responsibility
Employee Engagement
DISCLOSURE OF SHAREHOLDINGS
49
50
51
Top 10 Shareholders
Directors’ Shareholdings
Senior Leadership and Management Shareholdings
CORPORATE DATA
53
54
Company Profile
Contact Information
• Jamaica
- Kingston
- Montego Bay
• Trinidad
• Barbados
FINANCIAL STATEMENTS
64
65
66
67
69
70
71
72
74
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 to the Financial Statements
PROXY FORM
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 health
through profitable, sustainable growth, supported by state-of-the-
art digital technology and innovative corporate social responsibility
programmes.
CORPORATE STRUCTURE
General Accident
Insurance Group
Jamaica Revenue
J$ 12.974B
Barbados Revenue
J$ 330.648M
Trinidad Revenue
J$ 654.851M
170
Employees
6
Employees
53
Employees
Net Assets
J$ 2.870B
Net Assets
J$ 88.70M
Net Assets
J$ 387.47M
2021 | GENERAL ACCIDENT ANNUAL REPORT 6
KEY FINANCIAL HIGHLIGHTS
PREMIUM MOVEMENT OVER FIVE YEARS
0.26
0.26
0.23
0.16
0.12
0.3
0.2
0.1
0
2017
2018
2019
2020
2021
7 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 8
125%
100%
75%
50%
25%
0%
COMBINED RATIOS
101%
99%
95%
86%
78%
2017
2018
2019
2020
2021
Motor 26%
Marine 1%
Liability 7%
HOC & Burgary 2%
Misc. Accident &
Engineering 5%
Property 59%
7 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 8
10 - YEAR STATISTICAL REVIEW
9 2021 | GENERAL ACCIDENT ANNUAL REPORT
EMPLOYEESGROSS WRITTEN PREMIUMS ($’000)CLAIMS INCURRED ($’000) UNDERWRITING PROFIT/(LOSS) ($’000)PROFIT BEFORE TAX ($’000)PROFIT AFTER TAX ($’000)CASH DIVIDENDS ($’000)SHAREHOLDER’S EQUITY ($’000)LOSS RATIORETURN ON EQUITYDIVIDEND YIELD ON AVERAGE EQUITYP/E RATIOCLOSING STOCK PRICEDIVIDEND PAYOUT RATIO MARKET CAPITALIZATION ($’000) 202120202019201820172016201520142013201220522912,044,9901,816,926 1,445259,536193,812222,6682,974,86666%6%7%25.86.1950%6,383,43813,959,8071,751,36080,317 259,695149,236196,7012,921,96458%5%7%22.75.950%6,084,37513210,727,8281,205,328442,136770,154651,558142,6843,003,56554%32%6%13.17.150%7,321,8751318,735,7971,023,022174,768352,569285,370150,0472,056,61263%15%8%12.63.5468%3,650,6251117,106,2541,087,590-35,532236,077221,236200,0011,937,77182%11%10%13.32.852%2,887,500915,649,097746,07345,609404,243386,879175,0031,964,42066%22%9%7.92.9957%3,083,438906,112,355696,480114,656303,448304,418172,2191,775,29762%19%10%6.82.0554%2,114,063785,072,375678,558101,941319,965320,078203,8781,579,38263%22%13%5.61.7562%1,804,688834,479,755646,79158,503323,702327,914140,0251,456,94465%25%10%5.61.848%1,856,250773,788,969540,775117,362285,269290,537100,0311,288,85058%25%8%6.31.7635%1,815,000 2021 | GENERAL ACCIDENT ANNUAL REPORT 10
EMPLOYEESGROSS WRITTEN PREMIUMS ($’000)CLAIMS INCURRED ($’000) UNDERWRITING PROFIT/(LOSS) ($’000)PROFIT BEFORE TAX ($’000)PROFIT AFTER TAX ($’000)CASH DIVIDENDS ($’000)SHAREHOLDER’S EQUITY ($’000)LOSS RATIORETURN ON EQUITYDIVIDEND YIELD ON AVERAGE EQUITYP/E RATIOCLOSING STOCK PRICEDIVIDEND PAYOUT RATIO MARKET CAPITALIZATION ($’000) 202120202019201820172016201520142013201220522912,044,9901,816,926 1,445259,536193,812222,6682,974,86666%6%7%25.86.1950%6,383,43813,959,8071,751,36080,317 259,695149,236196,7012,921,96458%5%7%22.75.950%6,084,37513210,727,8281,205,328442,136770,154651,558142,6843,003,56554%32%6%13.17.150%7,321,8751318,735,7971,023,022174,768352,569285,370150,0472,056,61263%15%8%12.63.5468%3,650,6251117,106,2541,087,590-35,532236,077221,236200,0011,937,77182%11%10%13.32.852%2,887,500915,649,097746,07345,609404,243386,879175,0031,964,42066%22%9%7.92.9957%3,083,438906,112,355696,480114,656303,448304,418172,2191,775,29762%19%10%6.82.0554%2,114,063785,072,375678,558101,941319,965320,078203,8781,579,38263%22%13%5.61.7562%1,804,688834,479,755646,79158,503323,702327,914140,0251,456,94465%25%10%5.61.848%1,856,250773,788,969540,775117,362285,269290,537100,0311,288,85058%25%8%6.31.7635%1,815,000 OUR STRATEGIC FOCUS
VALUE CREATION AND LONG-TERM SUSTAINABILITY
GenAc provides risk transfer mechanisms to our customers, guided by 40 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.
11 2021 | GENERAL ACCIDENT ANNUAL REPORT
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.
2021 | GENERAL ACCIDENT ANNUAL REPORT 12
NOTICE OF
ANNUAL
GENERAL MEETING
13 2021 | GENERAL ACCIDENT ANNUAL REPORT
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 14, 2022 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 Financial Statements for the
financial year ended December 31, 2021.
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 Paul B. Scott as a Director of the Board of the Company.
(b) To reappoint Melanie Subratie as a Director of the Board of the Company.
(c) To reappoint Christopher Nakash as a Director of the Board of the Company.
4. To authorise 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, 2021 being $196,700,624 or 19.074 cents per
ordinary share, as the final dividend for that year.
Dated this the 27th day of June, 2022 by order of the Board
Lesley Miller
CORPORATE SECRETARY
2021 | GENERAL ACCIDENT ANNUAL REPORT 14
GOVERNANCE
17 2021 | GENERAL ACCIDENT ANNUAL REPORT
CHAIRMAN’S REPORT
General Accident successfully navigated the impact of the Covid 19 pandemic in
2021 while continuing to execute our strategy of building a leading regional general
insurance company.
Our brand, our people, our relationships, and our technology, allowed General Accident
to deliver a record financial performance while executing on our long-term strategy.
General Accident delivered a satisfactory financial result in 2021, recording the
highest gross written premiums in our history. We wrote gross premiums of $14.0
billion, an increase of $1.9 billion or 16% over 2020. We achieved profit before tax
of $259.7 million, produced a 9.7% return on equity and distributed $196.7 million
of dividends to our shareholders.
General Accident’s regional programme made significant progress in 2021. In
Jamaica, we cemented our position as the largest underwriter of general insurance
risks, with gross written premiums of $13.0 billion, an increase of $1.4 billion over
2020. In Trinidad, we grew gross written premiums to $654.9 million, an increase
of $259.0 million over 2020, while in Barbados, we grew gross written premiums
to $330.6 million, an increase of $271.9 million over 2020.
In 2021, despite the impact of the pandemic and a large fire claim, General Accident’s
Jamaican property and motor insurance operations had another year of strong
premium growth and profitability. This is a testament to our prudent underwriting
policies and strong reinsurance network.
General Accident’s consolidated profits in 2021 reflect our investments in our
emerging subsidiaries in Trinidad and Barbados. While these investments may have
a short-term adverse impact on our financial results, over the long run they will
create considerable value for the Company. Moreover, investing in organic growth
involves considerably less risk than growing our business through large acquisitions.
The increased adoption of technology in the Caribbean region, accelerated 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, creates economies of scale, and better enables General Accident to invest,
develop and deploy digital insurance solutions.
Going forward, General Accident is focused on strengthening our market leadership in
Jamaica, expanding our operations in Trinidad and Barbados, and placing technology
at the core of our operations.
Paul B. Scott
CHAIRMAN
2021 | GENERAL ACCIDENT ANNUAL REPORT 18
DIRECTORS’ REPORT
The Directors are pleased to present their report
for General Accident Insurance Company (Jamaica)
Limited for the financial year ended December 31, 2021
FINANCIAL RESULTS
The Statement of Comprehensive Income for the
Group shows pre-tax profits for the year of $259.7
million, taxation of $110.5 million and a net profit
after tax of $149.2 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, 2021,
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.
The Directors to retire by rotation in accordance with
the Articles of Incorporation are: P.B. Scott, Melanie
Subratie and Christopher Nakash but being eligible,
will offer themselves for re-election.
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 19.074 cents per share paid on December
30, 2021, is proposed to be the final dividend in respect
of the financial year ended December 31, 2021.
19 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 20
DIRECTORS’ PROFILES
CHAIRMAN
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.
MANAGING DIRECTOR
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.
21 2021 | GENERAL ACCIDENT ANNUAL REPORT
DIRECTORS’ PROFILES
DEPUTY CHAIR MAN
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.
EXECUTIVE DIRECTOR & COMPANY SECRETARY
LESLEY MILLER
(appointed April 2022)
Lesley Miller is the Company Secretary and an executive Director of the Company.
Mrs. Miller is the Group Chief Information Officer of General Accident Insurance.
Prior to that Mrs. Miller was the Head of Business Operations at Digicel Jamaica
where she spent several years in various senior roles.
Mrs. Miller holds a B.Sc. in Computing & Information Technology (Hons.) from
the University of Technology Jamaica and an M.B.A in Banking & Finance (with
distinction) from the University of the West Indies. Lesley is certified by the
Project Management Institute as a Project Management Professional (PMP®).
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 2003. She is a consultant at
Clinton Hart & Co., Attorneys-at-Law, specialising in financial securities
and corporate law.
2021 | GENERAL ACCIDENT ANNUAL REPORT 22
DIRECTORS’ PROFILES
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.
INDEPENDENT NON-EXECUTIVE DIRECTOR
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.
INDEPENDENT NON-EXECUTIVE DIRECTOR
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.
23 2021 | GENERAL ACCIDENT ANNUAL REPORT
DIRECTORS’ PROFILES
EXECUTIVE DIRECTOR
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.
INDEPENDENT NON-EXECUTIVE DIRECTOR
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.
INDEPENDENT NON-EXECUTIVE DIRECTOR
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.
2021 | GENERAL ACCIDENT ANNUAL REPORT 24
CORPORATE GOVERNANCE REPORT
values and the broad requirements of the Regulators. The
Committee is tasked with the prevention, identification and
management of conflicts of interest and the disclosures
around any such conflicts.
The Conduct Review Committe is comprised 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 is comprised 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.
The Investment and Loan Committee is comprised of (3)
non-executive directors and one (1) executive director.
The Committee meets at least four (4) times for the year.
BOARD AND COMMITTEE MEETINGS
The Committees and members continued to fulfill their
mandate to the Group. In 2021 in person Board meetings
reconvened as much as possible.
CORPORATE GOVERNANCE
Our Corporate Governance framework is designed to
support the transparency and accountability of the
people and processes in the Group as it expands its
reach in the region. The framework is documented in
our Corporate Governance Policy, wherein, prescribed
practices are aligned with the rigor of global best
practice, the Private Sector Organization of Jamaica’s
Code on Corporate Governance and the Jamaica Stock
Exchange’s Corporate Governance Guidelines.
The Group’s corporate governance standards reflect
the key tenets of responsibility, integrity, prudence,
transparency and fair and equitable decision making. It
is the collective responsibility of the Board to supervise
and direct the company’s affairs in the interest of growth
and profitability of the business.
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 balanced decision
making and independence. The Board is comprised of
eleven (11) members, a non-executive Chairman, eight (8)
non-executive directors and two (2) executive directors.
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 CONDUCT REVIEW COMMITTEE
The Committee has responsibility for oversight of the
policies and procedures to ensure that the company
conducts its affairs responsibly and in keeping with our
25 2021 | GENERAL ACCIDENT ANNUAL REPORT
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.
GENERAL MANAGER - BARBADOS
WANDA MAYERS
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 an 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.
27 2021 | GENERAL ACCIDENT ANNUAL REPORT
SENIOR LEADERSHIP TEAM
CHIEF INFORMATION OFFICER
LESLEY MILLER
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.
CHIEF INSURANCE OFFICER
MICHELLE ROBINSON
Michelle Robinson joined General Accident in October 1990. From 1990 to 2011, Michelle
served in various roles, including Management Trainee, Claims Manager and Marketing
Manager. Michelle’s varied experience developed her expertise in underwriting and claims
for all lines of business. Michelle left General Accident in 2011, returning in 2021, after
gaining invaluable experience in branch network management and regional oversight.
In her current role, Michelle oversees the operations of the Underwriting and Claims
Departments and provides technical advice to our regional operations.
Michelle holds the ACII designation as a Chartered Insurer with the Chartered Insurance
Institute, London.
BUSINESS DEVELOPMENT OFFICER
JAMALDA STANFORD-BROWN
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 MANAGER – AUTOSMART
JANILLE JARRETT
Janille Jarrett joined General Accident in May 2005, and has worked in the Customer
Service, Underwriting and Broker Services departments. She advanced through the ranks
and held the position of Management Trainee up to August 2015, when she migrated.
She re-joined us in July 2016 and was appointed Underwriting Manager -AutoSMART,
which is a specialized insurance business unit within General Accident. Janille went on to
spend four (4) years as the Motor Underwriting Manager for General Accident, and, under
her management we saw a significant growth in our motor portfolio.
In January 2021, Janille was promoted to Senior Portfolio Manager with responsibility for
the AutoSMART Unit. She is a Certified Insurance Technician and is currently pursuing The
Chartered Insurance Professional (CIP) Designation.
2021 | GENERAL ACCIDENT ANNUAL REPORT 28
MANAGEMENT TEAM
CAREEN NOLAN
Head of Property
& Casualty Division
ANGELLA REYNOLDS
Underwriting Consultant
PETAGAYE MCCOOK
Legal Services Manager
CAROL BARNETT
Claims Manager
JANILLE JARRETT
General Manager
AutoSmart
29 2021 | GENERAL ACCIDENT ANNUAL REPORT
MANAGEMENT TEAM
JOAN MCLEGGON
Chief Human
Resources Officer
DOUGLAS HAYDEN
Information Technology
Manager
CHERYLL HENRY
Operations & Facilities
Manager
TANYA OAKLEY
Business Intelligence
Manager
JANETTE COLE-SMITH
Finance & Compliance
Manager
2021 | GENERAL ACCIDENT ANNUAL REPORT 30
REGIONAL MANAGEMENT TEAM
NATASHA PETTIER
CEO
Trinidad & Tobago
ASHMIN MAHASE
General Manager
Trinidad & Tobago
JESEANIA GLASGOW-BURNETT
Manager, Underwriting and Business
Development - Trinidad & Tobago
DUNSTAN LODGE
Head of Customer Support
Trinidad & Tobago
SHIVANNE RAMADHAR
Accountant
Trinidad & Tobago
RAJIN MATADEEN
Claims Manager
Trinidad & Tobago
WANDA MAYERS
General Manager
Barbados
GAIL GRIFFITH
Underwriter
Barbados
31 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 32
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
JONELLE JENKINS
Morant Bay, St. Thomas
33 2021 | GENERAL ACCIDENT ANNUAL REPORT
MANAGEMENT
DISCUSSION
AND ANALYSIS
MANAGEMENT DISCUSSION
AND ANALYSIS
PROFITABILITY
In 2021, the General Accident Group successfully navigated
the impact of the Covid 19 pandemic and continued
to execute our strategy of building a leading regional
general insurance company. Indeed, our exceptional
people, relationships, technology and brand allowed
General Accident to deliver a solid financial performance.
The General Accident Group recorded the highest
gross written premiums in our history. We achieved
gross written premiums of $14.0 billion, an increase
of $1.9 billion or 16% over 2020. We achieved a profit
before tax of $259.7 million, produced a 9.7% return
on equity and distributed $196.7 million of dividends to
our shareholders.
Notwithstanding Covid 19’s continued impact on regional
economies in 2021, we maintained high levels of customer
service, expanded our digital competence, and provided
effective communication for our customers and stakeholders.
Notably, despite the impact of a large fire claim, General
Accident’s Jamaican property and motor insurance
operations had another year of solid premium growth
and profitability. This is a testament to our prudent
underwriting policies and strong reinsurance network.
General Accident Jamaica produced revenue of $13.0 billion,
up 12% on the prior year of $11.6 billion; underwriting
profit of $428.1 million, up 144% on the previous year
of $175.5 million; net profit of $501.2 million, up 27%
million on prior year of $393.4 million.
General Accident Trinidad and Tobago produced revenue
of $654.9 million, an increase of $259.0 million or 67%
over 2020, and a net loss of $244.4 million in its second
full year of operation. Even though profitability fell below
budget, we are incredibly encouraged by the significant
increase in revenue. In 2021, GenacTT completed its
rebranding exercise and evolved from offering only
motor insurance products to offering seventeen (17)
new lines of insurance products with solid support from
our panel of reinsurers. GenacTT now works with all the
35 2021 | GENERAL ACCIDENT ANNUAL REPORT
major insurance brokers in the Trinidad and Tobago
market and is well-positioned for continued growth.
General Accident Barbados experienced rapid growth
in 2021, its first full year of operation. Revenue grew
from $60.0 million for the eight (8) months of 2020 to
$330.6 million for the 2021 financial year. This growth
is primarily attributed to increased broker penetration
and the expansion of our agent network. Although Group
business continued to support our portfolio, personal
lines insurance products, particularly motor insurance
products, have exceeded our budgeted expectations. As
General Accident Barbados established itself, a modest
loss was budgeted. The company performed better
than anticipated through careful cost management and
a favourable loss ratio. The 2021 net loss was $99.9
million. General Accident Barbados doubled its staff
complement and improved its operating efficiency by
digitising its processes.
MANAGEMENT DISCUSSION
AND ANALYSIS CONT.
Gross Written Premium Composition 2020
Motor
27%
Casualty
15%
Property
58%
Gross Written Premium Composition 2021
Motor
27%
Casualty
14%
Property
59%
2021 | GENERAL ACCIDENT ANNUAL REPORT 36
MANAGEMENT DISCUSSION
AND ANALYSIS CONT.
FINANCIAL HIGHLIGHTS
GENERAL ACCIDENT GROUP
GENERAL ACCIDENT JAMAICA
Consistent premium growth
20 years of premium growth
Gross written premiums of $14.0 billion
Gross written premiums of $13.0 billion
Net Profit for the year of $149.2 million
Net Profit for the year of $501.2 million
Shareholders’ Equity of $2.92 billion
Shareholders’ Equity of $2.87 billion
Total assets of $12.5 billion
Total assets of $10.2 billion
Earnings per share of $0.25
Profit attributable to shareholders was $254.8 million in 2021. We paid dividends amounting to $196.7 million
in the year under review.
INVESTMENT INCOME
Investment income decreased by 23% to $226.5 million,
down from $293.9 million in 2020, with a loss of $7.5
million reported in Other Comprehensive Income.
We are pleased that we could produce a minimum
return on investment (ROI) of 5.0%.
37 2021 | GENERAL ACCIDENT ANNUAL REPORT
MANAGEMENT DISCUSSION
AND ANALYSIS CONT.
FINANCIAL STRENGTH
General Accident Group is well capitalised with an equity
book value of $2.9 billion, providing stability to weather
any potential economic headwinds of 2022.
Total assets increased by 12% to $12.5 billion, up from
$11.2 billion in 2020. Notably, Cash and Cash Equivalents
increased by 91% to $1.4 billion, up from $756.5 million
in 2020.
CAPITAL MANAGEMENT
General Accident Group allocates capital to maximise
long-term shareholder value while maintaining financial
strength. We consistently meet required regulatory
and solvency ratios. 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 prudent capital position.
We are pleased to report that we met the regulatory
capital and liquidity requirements for all entities for
2021.
DESCRIPTION
Jamaica MCT
BENCHMARK
ACTUAL
200.80%
209.10%
Trinidad & Tobago Solvency Margin
110%
133%
Barbados Solvency Margin
500,000 BBD
700,000 BBD
LOOKING AHEAD
For much of 2021, Caribbean economies continued to
experience the lingering impact of the pandemic. However,
at the start of 2022, we have seen positive signals, with
many Caribbean governments ending lockdowns and
curfews, reopening schools and offices, and removing
travel restrictions. We believe these actions bode well
for increased economic activity, and as a result, we
anticipate that this will lead to greater demand for our
insurance products.
General Accident’s presence in all three of the Caribbean’s
most important insurance markets creates economies
of scale that enable us to invest in, develop and deploy
digital insurance solutions. Consequently, as a new
entrant in Trinidad and Barbados, we derive a competitive
advantage from our streamlined business processes
resulting from our investment in digitisation made in
2020 and 2021. This positions us well for increased
operating efficiency in 2022.
In 2022, General Accident remains focused on solidifying
our market leadership in Jamaica, growing our business
in Trinidad and Barbados, and completing our digital
transformation. We will continue to leverage our market
reach, digital capabilities, and financial strength to
capitalise on opportunities to provide a full suite of
insurance products to the Caribbean.
General Accident remains 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 digitised,
customer-focused marketplace. We are well-positioned
to achieve robust financial performance and satisfy
policyholders.
I would like to sincerely thank the Board of Directors
for providing insight, guidance and support to General
Accident’s management and staff. To the hardworking
staff members in Jamaica, Trinidad and Barbados, my
heartfelt gratitude and appreciation to you for your
continued commitment to the company’s success. To
our brokers and insureds, thank you for your confidence
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
2021 | GENERAL ACCIDENT ANNUAL REPORT 38
39 2021 | GENERAL ACCIDENT ANNUAL REPORT
RISK MANAGEMENT
The Group’s business practices inherently expose General
Accident to the risks associated with insurance contracts.
Beyond that exposure, the Group faces regulatory,
market and operational risks.
For each class of risk, the Risk Management Framework
identifies the Group’s risk appetite and the potential
outcomes that pose a threat to the achievement of the
Group’s strategic objectives. Risk governance is supported
by an internal Risk Committee.
The Group is guided by its Risk Management Policy. Within
this framework the Board has established committees to
monitor the mitigation and management of these risks.
The Board has overall responsibility for the oversight of
the Group’s risk management framework.
The risk categories subject to Board oversight are set
out below:
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
internal
The risk of failure of
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.
2021 | GENERAL ACCIDENT ANNUAL REPORT 40
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 | 42
CORPORATE SOCIAL
RESPONSIBILITY
The Covid 19 pandemic continued into 2021, resulting in
another unprecedented year filled with global uncertainty.
General Accident remained focused on a vibrant Corporate
Social Responsibility programme to play its part in
advancing national development and serving the wider
community while cushioning the impact on some of
Jamaica’s most vulnerable people.
Through the collective effort of a dedicated team, we
were able to support our long-standing causes as well
as new undertakings.
Here are the highlights:
40TH ANNIVERSARY CELEBRATION
To celebrate General Accident Jamaica’s 40th anniversary,
The Company hosted a series of events. Among
the celebrations were giveaways open to staff and
customers alike through a Spin the Wheel challenge. For
approximately three weeks in November and December,
customers visiting any General Accident branch had an
opportunity to spin the wheel to win a prize. Staff also
took their chances at the wheel as part of the festivities.
General Accident marked the milestone anniversary with
gifts of fruit and ornamental trees to selected customers,
staff members and organizations. The trees were sourced
from the Forestry Department and gifted to those with
adequate space and resources to care for them. The
Company has long supported environmental initiatives
and regards tree planting as an important contribution
to a sustainable future. We hope to receive updates on
the growing trees from the recipients.
General Accident’s Marketing Associate, ShaVaughn Rattigan hands
over a Spin the Wheel prize to customer Hyacinth Redley who won
herself a 40th anniversary memento during the company’s milestone
celebration.
43 2021 | GENERAL ACCIDENT ANNUAL REPORT
EARTH DAY
On Earth Day, April 22nd, General Accident team members
planted a garden of lantana flowers on the General
Accident property to create a habitat for butterflies and
beautify the premises.
Staff members Romario Miller (left) and Monique Jordan (right)
transplant lantanas to the company grounds as part of General
Accident’s celebration of Earth day on April 22.
BLOOD DRIVE
In observance of World Blood Donor Day on June 14,
General Accident invited the public to donate blood to
the National Blood Transfusion Service (Blood Bank)
on June 15. For the blood drive, Blood Bank technicians
were stationed at the General Accident offices located
at 58 Half-Way-Tree Road.
This initiative was done in partnership with the Musson
Foundation, Shop Box and Nupak and aimed to help
replenish the Blood Bank’s resources. At the end of the
drive, 81 registered persons (45 of which were staff
members) donated 50 units of blood. From the 50 units
CORPORATE SOCIAL
RESPONSIBILITY CONT.
collected at the GenAc Blood Drive, the Blood Bank can
save up to 150 lives.
General Accident Insurance Company (Jamaica) (GenAc) CEO Sharon
Donaldson (standing left) and Musson Foundation Chairperson
Melanie Subratie (standing right) watch as National Blood Transfusion
Service (Blood Bank) registered nurse Huntley Walker goes through
the pre-donation health screening with Orville McGhan of Axia
Insurance Brokers.
MAISIE GREEN LEARNING CENTRE
The Company continued its support of the Maisie Green
Learning Centre in 2021. For Labour Day, members
of staff donated a combination of gently used books
from their own children or childhood as well as newly
bought books, including leisure and educational
books, workbooks, charts, kid-sized puzzles and lesson
playing cards. In addition to the over 100 books, General
Accident donated two custom built bookshelves, built
by Ronald Reid, a Genac member of staff in the facilities
department.
The Learning Centre also received assistance with
renovations of the kitchen facilities in April 2021,
including the provision of an industrial stove.
Brittney Walters rests after her blood donation during GenAc-hosted
blood drive on June 15, 2021 observance of World Blood Donor Day
(June 14).
Lesley Miller (right), Chief Information Officer at General Accident
Insurance (Jamaica) company (GenAc) talks about the generosity of
the staff from crafting the bookshelves and donating the books with
Charmaine Bennett, principal of Maisie Green Learning Centre.
Olinda Prescott-Jones posed for a picture after making a
successful donation
General Accident team members (from left to right) Kevin Morris,
Ryan Douglas, Derrick Grant, Harvin Morris, and Colesha Mahoney
present an industrial stove to Maise Green Learning Centre principal,
Charmaine Bennett (second left).
2021 | GENERAL ACCIDENT ANNUAL REPORT 44
CORPORATE SOCIAL
RESPONSIBILITY CONT.
TENNIS JAMAICA TOURNAMENT
General Accident donated $100,000 to the All-Jamaica
Men’s and Women’s Open Singles Tennis Jamaica
tournament as an event sponsor. This was the first
sporting event of its kind in over a year and took place
in December attracting a record 120 entrants. Roland
Phillips emerged the winner in the men’s competition
and Katherine Dibbs took the trophy for women.
This donation highlights GenAc’s continued commitment
to promoting health and wellness in Jamaica.
READ ACROSS JAMAICA DAY
For the past two years, the annual Read Across Jamaica
Initiative has been held virtually across the parishes of
Jamaica. This year, staff members from the General
Accident family read to students of Dunrobin Primary
School via the video conferencing platform, Zoom.
The AutoSmart team was represented by Ramon
Campbell and Nishara Senior. General Accident staff
members Colesha Mahoney, Kerry-Ann Turnbull and
Jamalda Stanford- Brown also read stories and books
to children in videos shared on Instagram.
Lisa Hurd (left) and Kerry-Ann Turnbull (right) from General Accident
Insurance Jamaica gleefully engage with the students of Dunrobin
Primary School during the Read Across Jamaica virtual reading on
May 4, 2021.
HONOURABLE MENTIONS
General Accident also supports the following organizations
and activities:
Jamaica Environment Trust (JET)
Best Care Foundation
Janet Richards Foundation
The Salvation Army
45 2021 | GENERAL ACCIDENT ANNUAL REPORT
EMPLOYEE ENGAGEMENT
As the global pandemic progressed into its second
year, the General Accident team found innovative ways
to engage with each other while observing all relevant
Covid-19 protocols.
INTERNATIONAL WOMEN’S DAY
Under the 2021 theme ‘Choose to Challenge’, General
Accident staff members created posters to document
their vows to pursue equality in their everyday lives in
support of International Women’s Day. Both men and
women participated and created videos to showcase
their support for the cause and the year’s theme.
EARTH DAY
PINK DAY
General Accident team members dressed in pink on
October 1st as they stood in solidarity with breast cancer
survivors and marked the beginning of Breast Cancer
Awareness Month. Staffers also created an informative
video presentation performed as an altered version of
the ‘Don’t Rush’ challenge to further demonstrate their
support.
PEACE DAY
2021 | GENERAL ACCIDENT ANNUAL REPORT 46
EMPLOYEE ENGAGEMENT CONT.
JAMAICA DAY
To celebrate Jamaica day, General Accident staff
members donned their best reggae/ Jamaican outfit
for a day filled with fun activities. Team members were
treated to a lunch hour concert where they enjoyed
reggae music and played Jamaican childhood games.
CHRISTMAS DECOR COMPETITION
Christmas brought a new activity as General Accident
departmental teams challenged each other to a
Christmas decorating competition. Each department
was tasked to encourage holiday cheer by decorating
a designated space in keeping with their own chosen
theme. The competition was judged by interior decorator,
Sherrille Foote, and winners walked away with additional
vacation days as the prize.
CONCLUSION
Despite the constraints presented by the global pandemic,
General Accident maintained its support of staff
activities and awareness campaigns for issues faced by
many. The enthusiastic involvement of staff members
throughout the year continued to celebrate the values
of the Company.
47 2021 | GENERAL ACCIDENT ANNUAL REPORT
DISCLOSURE OF
SHAREHOLDINGS
2021 | GENERAL ACCIDENT ANNUAL REPORT 48
TOP 10 SHAREHOLDERS
AS AT DECEMBER 31, 2021
NAME
NO. OF UNITS
PERCENTAGE
Musson Jamaica Ltd.
824,999,989
80.00
Mayberry Jamaican Equities Ltd.
19,642,677
QWI Investments Ltd.
15,032,119
JCSD Trustee Services – Barita Unit Trust
14,280,309
Apex Pharmacy
10,000,000
PAM – Pooled Equity Fund
9,343,293
Lancedale Farquharson
7,625,000
Mayberry Managed Clients Account
6,760,969
Sagicor Select Funds Ltd
5,066,798
K. Chandiram Ltd.
4,331,450
1.90
1.46
1.38
0.97
0.91
0.74
0.66
0.49
0.42
49 2021 | GENERAL ACCIDENT ANNUAL REPORT
DIRECTORS’ SHAREHOLDINGS
AS AT DECEMBER 31, 2021
DIRECTORS
COMBINED HOLDING PERCENTAGE
2021 | GENERAL ACCIDENT ANNUAL REPORT 50
SENIOR LEADERSHIP AND
MANAGEMENT TEAM SHAREHOLDINGS
AS AT DECEMBER 31, 2021
MANAGER
COMBINED HOLDING PERCENTAGE
Cheryll Henry
Lesley Miller
Martin Miller et al
Jamalda Stanford
Janille Jarrett
159,445
0.0155
321,246
0.0315
92,857
25,000
0.0090
0.0024
51 2021 | GENERAL ACCIDENT ANNUAL REPORT
Musson Jamaica Ltd.
824,999,989
80.000
Sharon Donaldson
3,862,431
0.3745
350,000
1,000,000
0.0340
0.0970
Duncan Stewart
2,475,190
0.2400
Paul B. Scott
Melanie Subratie
Junior Levine
Gregory Foster
Geoffrey Messado
Deborah Stewart
Diana Stewart
Christopher Nakash
Nicholas Scott
Matthew Lyn
Jodi Lyn
1,698,020
1,980,198
96,500
0.1647
0.1920
0.0094
CORPORATE
DATA
2021 | GENERAL ACCIDENT ANNUAL REPORT 52
COMPANY
PROFILE
DIRECTORS:
• P.B. Scott, Chairman
• Melanie Subratie, Deputy Chairman
• Sharon Donaldson, Managing Director
• Lesley Miller
• Jennifer Scott
• Nicholas Scott
• Duncan Stewart
• Christopher Nakash
• Matthew Lyn
• Brian Jardim
• Gregory Foster
CORPORATE SECRETARY:
• Lesley Miller
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 10
Telephone No: (876) 929-8451
Fax No: (876) 929-1074
Email: info@genac.com
Website: www.genac.com
CONTACT
INFORMATION
JAMAICA
• General Accident Insurance Company Jamaica Limited
Kingston & St. Andrew
58 Half Way Tree Road, Kingston 10
Telephone : (876) 929-9643
(876) 929-8451/4
Email: info@genac.com
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
Email: infott@genac.com
BARBADOS
• General Accident Insurance Company Barbados Limited
Suite 8, Dome Mall,
Warrens,
St. Michael BB22026
Telephone: (246) 257-3392
Email: infobb@genac.com
GENERAL ACCIDENT INSURANCE COMPANY JAMAICA LIMITED
31 December 2021
FINANCIAL STATEMENTS
Actuary’s Report
Independent Auditor’s Report to the Members
Financial Statements
64
65
66
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
67-68
Consolidated statement of cash flows
69
70
71
Company statement of comprehensive income
Company statement of financial position
Company statement of changes in equity
72 - 73
Company statement of cash flows
74 - 153
Notes to the financial statements
55 2021 | GENERAL ACCIDENT ANNUAL REPORT
3. EXPRESSION OF OPINION
I have examined the financial condition and valued the policy and claims liabilities of GAICJL for its
balance sheet as at December 31, 2021 and the corresponding change in the policy and claims liabilities in
the statement of operations for the year then ended. I meet the appropriate qualification standards and am
familiar with the valuation and solvency requirements applicable to general insurance companies in
Jamaica. I have relied upon PriceWaterhouseCoopers for the substantial accuracy of the records and
information concerning other liabilities, as certified in the attached statement.
The results of my valuation together with amounts carried in the Annual Return are the following:
Claims Liabilities (J$000)
Carried in Annual
Return
Actuary’s
Estimate
Direct unpaid claims and adjustment expenses:
Assumed unpaid claims and adjustment expenses:
Gross unpaid claims and adjustment expenses:
Ceded unpaid claims and adjustment expenses:
Other amounts to recover:
Other net liabilities:
Net unpaid claims and adjustment expenses:
3,403,453
0
3,403,453
1,609,543
0
0
1,793,910
3,407,607
0
3,407,607
1,612,765
0
0
1,794,841
Policy Liabilities (J$000)
Gross policy liabilities in connection with unearned premiums:
Net policy liabilities in connection with unearned premiums:
Gross unearned premiums:
Net unearned premiums:
Premium deficiency:
Other net liabilities:
Carried in Annual
Return
Actuary’s
Estimate
1,301,993
992,871
2,226,796
1,289,126
0
0
2021 | GENERAL ACCIDENT ANNUAL REPORT 56
In my opinion:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
The methods and procedures used in the verification of the data are sufficient and reliable and
fulfill acceptable standards of care;
The valuation of policy and claims liabilities has been made in accordance with generally
accepted actuarial practice with such changes as determined and directions made by the
Commission;
The methods and assumptions used to calculate the policy and claims liabilities are
appropriate to the circumstances of the company and of the said policies and claims;
The amount of policy and claims liabilities represented in the balance sheet of General
Accident Insurance Company Jamaica Limited makes proper provision for the future
payments under the company’s policies and meet the requirements of the Insurance Act and
other appropriate regulations of Jamaica;
A proper charge on account of these liabilities has been made in the statement of
comprehensive income;
There is sufficient capital available to meet the solvency standards as established by the
Commission
Josh Worsham, FCAS, MAAA
____________________________
Name of Appointed Actuary
__________________________
Signature of Appointed Actuary
April 5, 2022
Date
57 2021 | GENERAL ACCIDENT ANNUAL REPORT
Independent auditor’s report
To the Members of General Accident Insurance Company Jamaica Limited
Report on the audit of the consolidated and stand-alone financial
statements
Our opinion
In our opinion, the consolidated financial statements and the stand-alone financial statements give a true
and fair view of the consolidated financial position of General Accident Insurance Company Jamaica
Limited (the Company) and its subsidiaries (together ‘the Group’) and the stand-alone financial position of
the Company as at 31 December 2021, and of their consolidated and stand-alone financial performance
and their consolidated and stand-alone cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRS) and with the requirements of the Jamaican Companies
Act.
What we have audited
The Group’s consolidated and stand-alone financial statements comprise:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
the consolidated statement of financial position as at 31 December 2021;
the consolidated statement of comprehensive income for the year then ended;
the consolidated statement of changes in equity for the year then ended;
the consolidated statement of cash flows for the year then ended;
the company statement of financial position as at 31 December 2021;
the company statement of comprehensive income for the year then ended;
the company statement of changes in equity for the year then ended;
the company statement of cash flows for the year then ended; and
the notes to the financial statements, which include significant accounting policies and other
explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the consolidated and stand-alone financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
PricewaterhouseCoopers, Scotiabank Centre, Duke Street, Box 372, Kingston, Jamaica
T: (876) 922 6230, F: 876) 922 7581, www.pwc.com/jm
L.A. McKnight B.L. Scott B.J. Denning G.A. Reece P.A. Williams R.S. Nathan C.I. Bell-Wisdom G.K. Moore T.N. Smith DaSilva K.D. Powell.
2021 | GENERAL ACCIDENT ANNUAL REPORT 58
Independence
We are independent of the Group in accordance with the International Code of Ethics for Professional
Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in
accordance with the IESBA Code.
Our audit approach
Audit scope
As part of designing our audit, we determined materiality and assessed the risks of material misstatement
in the consolidated and stand-alone financial statements. In particular, we considered where management
made subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain. As in all of our audits, we
also addressed the risk of management override of internal controls, including, among other matters,
consideration of whether there was evidence of bias that represented a risk of material misstatement due
to fraud.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on
the consolidated financial statements as a whole, taking into account the structure of the Group, the
accounting processes and controls, and the industry in which the Group operates.
The Group comprises three components being the Company, and two subsidiaries located in Trinidad and
Tobago and Barbados. Full scope audit procedures were performed on two components which were
considered individually financially significant. The audit procedures covered 96% of total assets and 98%
of total revenue of the Group.
In establishing the overall group audit strategy and plan, we determined the type of work needed to be
performed at the component level by the Group engagement team and by the PwC component auditors.
We further determined the level of involvement we needed to have in the audit work of the component
auditors to be able to conclude whether sufficient appropriate audit evidence had been obtained as a
basis for our opinion on the consolidated financial statements as a whole.
59 2021 | GENERAL ACCIDENT ANNUAL REPORT
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated and stand-alone financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated and stand-alone financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Valuation of claims liabilities for general insurance
contracts
Refer to notes 2 (r), 4(a) and 33 to the consolidated
and stand-alone financial statements for
disclosures of related accounting policies,
judgements and estimates
As at year end, the total reserves set aside in
relation to claims liabilities amounted to $4.8 billion
for the Group and $3.4 billion for the Company.
This represented 51% and 46% of total liabilities
for the Group and Company, respectively.
We focused on this area as the determination of
the value of claims liabilities requires significant
judgement in the selection of key assumptions and
the application of actuarial methodologies.
In particular, judgement arises over the estimation
of liabilities for claims reported as well as those
that have been incurred but not reported (IBNR) as
at 31 December 2021. There is generally less
information available in relation to IBNR claims
which could lead to greater variability between
initial estimates and final settlement.
Management engaged an actuarial expert to assist
in determining the value of the claims liabilities
included in the consolidated and stand-alone
statements of financial position.
Our approach to addressing the matter, with the
assistance of our actuarial expert, involved the
following procedures, amongst others:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
Tested the operating effectiveness of certain
relevant controls over the claims business
process.
Tested the completeness, accuracy and
reliability of the underlying data utilized by
management, and its external actuarial
experts, to support the actuarial valuation by
agreeing, on a sample basis, to source
documentation, which included signed
insurance contracts and claim submissions.
Assessed the independence, experience and
objectivity of management’s actuarial expert.
Evaluated the suitability of the methodologies
and assumptions used in establishing claims
liabilities against established actuarial
practices, those commonly used in the
insurance industry and underlying claims
information.
The results of our procedures indicated that the
methodologies and assumptions used by
management in establishing the valuation of
claims liabilities for general insurance contracts
were consistently applied and appropriate in the
circumstances.
2021 | GENERAL ACCIDENT ANNUAL REPORT 60
Other information
Management is responsible for the other information. The other information comprises the Annual Report
(but does not include the consolidated and stand-alone financial statements and our auditor’s report
thereon), which is expected to be made available to us after the date of this auditor’s report.
Our opinion on the consolidated and stand-alone financial statements does not cover the other information
and we will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and stand-alone financial statements, our responsibility is
to read the other information identified above when it becomes available and, in doing so, consider
whether the other information is materially inconsistent with the consolidated and stand-alone financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with governance.
Responsibilities of management and those charged with governance for the
consolidated and stand-alone financial statements
Management is responsible for the preparation of the consolidated and stand-alone financial statements
that give a true and fair view in accordance with IFRS and with the requirements of the Jamaican
Companies Act, and for such internal control as management determines is necessary to enable the
preparation of consolidated and stand-alone financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated and stand-alone financial statements, management is responsible for
assessing the Group and Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Group and Company’s financial
reporting process.
61 2021 | GENERAL ACCIDENT ANNUAL REPORT
Auditor’s responsibilities for the audit of the consolidated and stand-alone financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated and stand-alone
financial statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated and stand-alone financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
(cid:120)
Identify and assess the risks of material misstatement of the consolidated and stand-alone financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
(cid:120) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group and Company’s internal control.
(cid:120) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
(cid:120) Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group or Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated and stand-alone financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group or Company to cease to continue as a going concern.
(cid:120) Evaluate the overall presentation, structure and content of the consolidated and stand-alone financial
statements, including the disclosures, and whether the consolidated and stand-alone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(cid:120) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
2021 | GENERAL ACCIDENT ANNUAL REPORT 62
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated and stand-alone financial statements of the
current period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on other legal and regulatory requirements
As required by the Jamaican Companies Act, we have obtained all the information and explanations
which, to the best of our knowledge and belief, were necessary for the purposes of our audit.
In our opinion, proper accounting records have been kept, so far as appears from our examination of those
records, and the accompanying consolidated and stand-alone financial statements are in agreement
therewith and give the information required by the Jamaican Companies Act, in the manner so required.
The engagement partner on the audit resulting in this independent auditor’s report is Kevin Powell.
Chartered Accountants
27 June 2022
Kingston, Jamaica
63 2021 | GENERAL ACCIDENT ANNUAL REPORT
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Comprehensive Income
Year ended 31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Gross Premiums Written
Reinsurance ceded
Excess of loss reinsurance cost
Net premiums written
Changes in unearned premiums, net
Net Premiums Earned
Commission income
Commission expense
Claims expense
Management expenses
Underwriting Profit
Investment income
Finance charge
Other income
Other operating expenses
Profit before Taxation
Taxation
Net Profit for the Year
Net Profit Attributable to:
Owners of General Accident Insurance Company Jamaica Limited
Non-controlling interests
Note
10
13
11
12
13
15
38
2021
$’000
13,959,807
(10,488,851)
(216,992)
3,253,964
(221,205)
3,032,759
892,857
(511,026)
(1,751,360)
(1,582,913)
80,317
226,526
(7,076)
124,591
(164,663)
259,695
(110,459)
149,236
254,750
(105,514)
149,236
Page 1
2020
$’000
12,044,990
(9,066,069)
(167,314)
2,811,607
(71,047)
2,740,560
771,217
(465,634)
(1,816,926)
(1,227,772)
1,445
293,886
(14,642)
95,591
(116,744)
259,536
(65,724)
193,812
242,503
(48,691)
193,812
EARNINGS PER SHARE
16
$0.25
$0.24
Other Comprehensive Income, net of tax:
Items that may not be subsequently reclassified to profit or loss
Unrealised gains/(losses) on FVOCI investments
Unrealised(losses)/ gains on revaluation of real estate investment
Foreign currency translation adjustments
Total Other Comprehensive Income
TOTAL COMPREHENSIVE INCOME
Total Comprehensive Income Attributable to:
Owners of General Accident Insurance Company Jamaica Limited
Non-controlling interests
38
14,880
(22,417)
2,100
(5,437)
143,799
249,807
(106,008)
143,799
(45,835)
18,696
88,863
61,724
255,536
274,673
(19,137)
255,536
2021 | GENERAL ACCIDENT ANNUAL REPORT 64
65 2021 | GENERAL ACCIDENT ANNUAL REPORT
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Changes in Equity
Year ended 31 December 2021
(expressed in Jamaican dollars unless otherwise stated)
Page 3
Note
Share
Capital
$’000
Capital
Reserves
$’000
470,358 152,030
Property
Revaluation
Reserve
$’000
Fair
Value
Reserve
$’000
Translation
Reserve
$’000
Retained
Earnings
$’000
Non-
Controlling
Interest
$’000
Total
$’000
58,812
79,112
(22,037) 1,791,743
473,547 3,003,565
-
-
-
-
-
-
-
-
-
-
(5,646)
-
-
-
38
38
17
-
-
-
242,503
(48,691)
193,812
18,696
(45,792)
59,266
29,554
61,724
18,696
(45,792)
59,266
242,503
(19,137)
255,536
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(41,030)
(46,676)
40,874
40,874
(55,765)
(55,765)
-
(222,668)
-
(222,668)
As at 1 January 2020
Comprehensive income:
Net profit for the year
Other comprehensive income
Total comprehensive income
Transaction with non-controlling
interest
Capital contribution by non-
controlling interest
Dividends paid by subsidiary to
non-controlling interest
Transactions with owners
Dividends
Balance at 31 December 2020
470,358
146,384
77,508
33,320
37,229 1,811,578
398,489 2,974,866
Comprehensive income:
Net profit for the year
Other comprehensive income
Total comprehensive income
Transactions with owners
Dividends
Balance at 31 December 2021
17
-
-
-
-
-
-
-
-
254,750
(105,514)
149,236
(28,491)
14,851
8,697
-
(494)
(5,437)
(28,491)
14,851
8,697
254,750
(106,008)
143,799
-
-
- (196,701)
-
(196,701)
470,358
146,384
49,017
48,171
45,926 1,869,627
292,481 2,921,964
2021 | GENERAL ACCIDENT ANNUAL REPORT 66
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Cash Flows
Year ended 31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 4
Cash Flows from Operating Activities
Net profit
Adjustments for items not affecting cash:
Depreciation
Amortisation of intangible assets
Amortisation of investment premium
Gains on revaluation of investment property
Gain on disposal of investment property
ECL on debt investments
Gain on disposal of property, plant and equipment and adjustment
Finance charge
Interest income
Dividend income
Current taxation
Deferred taxation
Foreign exchange gains
Increase in deferred policy acquisition cost
Increase in insurance reserves
Changes in operating assets and liabilities:
Due from policyholders, brokers and agents
Other receivables
Other liabilities
Due from related parties
Due from reinsurers and coinsurers, net
Tax deducted at source
Net cash used in operating activities
Cash Flows from Investing Activities
Investments, net
Loans receivable
Lease receivables
Net cash outflow from acquisition of subsidiary
Acquisition of investment property
Acquisition of property, plant and equipment
Acquisition of intangible asset
Proceeds from disposal of property, plant and equipment
Proceeds from disposal and investment property
Dividend received
Interest received
Net cash provided by investing activities
Sub-total c/f
67 2021 | GENERAL ACCIDENT ANNUAL REPORT
Note
2021
$’000
2020
$’000
149,236
193,812
27,31
28
11
11
12
11
11
15
15
27
28
142,215
14,506
(1,202)
(6,803)
-
-
(6,271)
7,402
106,312
14,139
(3,392)
(21,811)
(33,969)
(6,872)
(2,490)
8,428
(167,984)
(173,233)
(18,822)
97,857
12,602
(33,753)
(66,088)
1,186,879
1,309,774
(162,497)
(614,458)
138,860
17,327
(867,768)
(178,762)
(76,658)
(255,420)
1,090,207
7,276
11,837
-
(2,259)
(127,134)
(479)
6,239
18,822
187,839
1,192,348
936,928
(14,299)
72,607
(6,883)
(58,639)
(23,268)
120,461
170,903
(135,865)
(76,167)
4,580
(28,184)
(89,023)
(153,756)
(27,765)
(181,521)
550,680
(251,464)
(79,157)
(46,676)
(6,123)
(151,679)
(7,006)
52,643
298,758
14,299
176,628
550,903
369,382
2021 | GENERAL ACCIDENT ANNUAL REPORT 68
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Cash Flows (Continued)
Year ended 31 December 2021
(expressed in Jamaican dollars unless otherwise stated)
Page 5
Sub-total b/f
Cash Flows from Financing Activities
Investment made by non-controlling interest
Lease payments
Dividends paid
Net cash used in by financing activities
Decrease in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at beginning of year
CASH AND CASH EQUIVALENTS AT END OF THE YEAR (NOTE 18)
Note
2021
$’000
2020
$’000
936,928
369,382
17
-
(82,921)
(196,701)
(279,622)
657,306
30,329
756,548
1,444,183
42,000
(59,787)
(278,433)
(296,220)
73,162
41,057
642,329
756,548
67 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 68
General Accident Insurance Company Jamaica Limited
Company Statement of Comprehensive Income
Year ended 31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Gross Premiums Written
Reinsurance ceded
Excess of loss reinsurance cost
Net premiums written
Changes in unearned premiums, net
Net Premiums Earned
Commission income
Commission expense
Claims expense
Management expenses
Underwriting Profit
Investment income
Finance charge
Other income
Other operating expenses
Profit before Taxation
Taxation
Net Profit for the Year
Other Comprehensive Income, net of tax:
Items that may not be subsequently reclassified to profit or loss
Note
10
11
12
15
2021
$’000
12,974,308
(10,327,323)
(129,519)
2,517,466
(24,197)
2,493,269
855,070
(451,199)
(1,328,741)
(1,140,317)
428,082
185,855
(7,076)
98,298
(98,573)
606,586
(105,433)
501,153
Page 6
2020
$’000
11,592,313
(9,037,477)
(118,083)
2,436,753
(46,853)
2,389,900
765,404
(450,338)
(1,562,480)
(966,938)
175,548
278,956
(6,214)
90,030
(83,833)
454,487
(61,083)
393,404
Unrealised gains on FVOCI investments
Unrealised gains on revaluation of real estate investment
Total Other Comprehensive Income
TOTAL COMPREHENSIVE INCOME
14,796
(22,417)
(7,621)
493,532
(45,711)
18,696
(27,015)
366,389
69 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 70
69 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 70
General Accident Insurance Company Jamaica Limited
Company Statement of Changes in Equity
Year ended 31 December 2021
(expressed in Jamaican dollars unless otherwise stated)
Page 8
Share
Capital
$’000
470,358
Capital
Reserves
$’000
152,030
Note
Property
Revaluation
Reserve
$’000
Fair
Value
Reserve
$’000
Retained
Earnings
$’000
Total
$’000
50,084
78,970
1,678,324 2,429,766
-
-
-
17
-
470,358
-
-
-
-
-
-
393,404
393,404
18,696
(45,711)
-
(27,015)
18,696
(45,711)
393,404
366,389
-
-
(222,668)
(222,668)
152,030
68,780
33,259
1,849,060 2,573,487
501,153
501,153
(22,417)
14,796
-
(7,621)
(22,417)
14,796
501,153
493,532
As at 1 January 2020
Comprehensive income:
Net profit for the year
Other comprehensive income
Total comprehensive income
Transactions with owners
Dividends
Balance at 31 December 2020
Comprehensive income:
Net profit for the year
Other comprehensive income
Total comprehensive income
Transactions with owners
Dividends
17
-
-
-
-
(196,701)
(196,701)
Balance at 31 December 2021
470,358
152,030
46,363
48,055
2,153,512 2,870,318
71 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 72
General Accident Insurance Company Jamaica Limited
Company Statement of Cash Flows
Year ended 31 December 2021
(expressed in Jamaican dollars unless otherwise stated)
Page 9
Cash Flows from Operating Activities
Net profit
Adjustments for items not affecting cash:
Depreciation
Interest expense
Amortisation of intangible assets
Amortisation of investment premium
Gains on revaluation of investment property
ECL on debt investments
Adjustment to property, plant and equipment
Gain on disposal of property, plant and equipment
Interest income
Dividend income
Current taxation
Deferred taxation
Foreign exchange gains
Increase in deferred policy acquisition cost
Increase in insurance reserves
Changes in operating assets and liabilities:
Due from policyholders, brokers and agents
Other receivables
Other liabilities
Due from related parties
Due from reinsurers and coinsurers, net
Tax deducted at source
Net cash (used in)/ provided by operating activities
Cash Flows from Investing Activities
Investments, net
Loans receivable
Acquisition of investment property
Acquisition of property, plant and equipment
Acquisition of intangible assets
Investment in subsidiary
Proceeds from disposal of property, plant and equipment
Dividend received
Interest received
Net cash used in investing activities
Sub-total c/f
Note
2021
$’000
2020
$’000
501,153
393,404
27,31
28
11
27
12
11
11
15
15
27
24
94,401
7,076
4,173
-
(6,803)
1,990
(5,633)
(131,042)
(18,822)
91,306
14,127
(43,215)
(34,531)
841,706
1,315,886
(51,314)
(585,526)
76,321
(34,279)
(831,301)
(110,213)
(53,764)
(163,977)
464,117
11,837
(2,259)
(70,115)
-
-
6,240
18,822
150,590
579,232
415,255
79,431
6,214
4,440
187
(20,015)
-
(2,933)
(2,490)
(111,170)
(117,825)
66,441
(5,357)
(40,092)
(18,352)
281,269
513,152
(87,326)
(64,621)
(16,631)
(29,847)
(60,834)
253,893
(26,374)
227,519
118,416
(79,157)
(6,124)
(71,219)
(3,026)
(210,170)
52,638
117,825
102,535
21,718
249,237
71 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 72
General Accident Insurance Company Jamaica Limited
Company Statement of Cash Flows (Continued)
Year ended 31 December 2021
(expressed in Jamaican dollars unless otherwise stated)
Page 10
Sub-total b/f
Cash Flows from Financing Activities
Lease payments
Dividends paid
Net cash used in by financing activities
Decrease in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at beginning of year
CASH AND CASH EQUIVALENTS AT END OF THE YEAR (NOTE 18)
Note
2021
$’000
2020
$’000
17
415,255
249,237
(62,600)
(196,701)
(259,301)
155,954
75,704
452,964
684,622
(40,741)
(222,668)
(263,409)
(14,172)
63,930
403,206
452,964
73 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 74
Page 11
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
1.
Identification and Activities
General Accident Insurance Company Jamaica Limited (the company) is incorporated and domiciled in Jamaica.
The company is a public listed company with its listing on the Jamaica Junior Stock Exchange. The company is
an 80% subsidiary of Musson (Jamaica) Limited (Musson). The registered office of the company is located at 58
Half-Way-Tree Road, Kingston 10. The company’s ultimate parent company, Musson, is incorporated and
domiciled in Jamaica.
The company is licensed to operate as a general insurance company under the Insurance Act, 2001. Its principal
activity is the underwriting of commercial and personal property and casualty insurance.
The company has two subsidiaries whose principal activities is also to provide property and casualty insurance
(Note 2(b)). The company together with its subsidiaries are referred to as ‘the Group’.
2. Summary of Significant Accounting Policies
The principal financial accounting policies adopted in the preparation of these financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) and IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under
IFRS. The financial statements have been prepared under the historical cost convention as modified by the
revaluation of certain financial instruments carried at fair value.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Group’s
accounting policies. Although these estimates are based on management’s best knowledge of current events
and action, actual results could differ from those estimates. The areas involving a higher degree of judgement
or complexity, or areas where assumptions and estimates are significant to the financial statements are
disclosed in Note 7.
Accounting pronouncements effective in 2021 which are relevant to the Group’s operations.
Certain new standards, amendments and interpretations to existing standards have been published that
became effective during the current financial year and are relevant to the Group’s operations. The adoption
of these new pronouncements has impacted the Group as discussed below.
Amendments to IFRS 7, IFRS 4 and IFRS 16 Interest rate benchmark reform – Phase 2 (effective for annual
periods beginning on or after 1 January 2021). The Phase 2 amendments address issues that arise from the
implementation of the reforms, including the replacement of one benchmark with an alternative one. The
Phase 2 amendments provide additional temporary reliefs from applying specific IAS 39 and IFRS 9 hedge
accounting requirements to hedging relationships directly affected by IBOR reform. There was no impact
from the adoption of these amendments.
73 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 12
2. Summary of Significant Accounting Policies (Continued)
(a) Basis of preparation (continued)
Standards, interpretations and amendments to published standards that are not yet effective
At the date of authorisation of these financial statements, certain new standards, interpretations and
amendments to existing standards have been issued which are mandatory for the group’s accounting periods
beginning on or after 1 January 2022 or later periods but were not effective at the statement of financial
position date. The Group has assessed the relevance of all such new standards, interpretations and
amendments and has determined that the following, as shown below, may be immediately relevant to its
operations.
IFRS 17, ‘Insurance contracts’, (effective for annual periods beginning on or after 1 January 2021).
IFRS 17 replaces IFRS 4 which currently permits a wide variety of practices in accounting for insurance
contracts. IFRS 17 will fundamentally change the accounting by all entities that issue insurance contracts
and investment contracts with discretionary participation features. The standard requires a current
measurement model where estimates are re-measured each reporting period. Contracts are measured
using the building blocks of discount probability – weighted cash flows, an explicit risk adjustment, and
a contract service margin (CSM) representing the unearned profit of the contract which is recognised as
revenue over the coverage period. This IFRS provides a common global insurance accounting standard
leading to consistency in recognition, measurement, presentation and disclosure. The Group is currently
assessing the impact of this standard.
Amendment to IFRS 16, ‘Leases’ – COVID-19 related rent concessions Extension of the practical
expedient (effective for annual periods beginning on or after 1 January 2022). As a result of the
coronavirus (COVID-19) pandemic, rent concessions have been granted to lessees. In May 2020, the
IASB published an amendment to IFRS 16 that provided an optional practical expedient for lessees from
assessing whether a rent concession related to COVID-19 is a lease modification. On 31 March 2021,
the IASB published an additional amendment to extend the date of the practical expedient from 30 June
2021 to 30 June 2022. Lessees can select to account for such rent concessions in the same way as
they would if they were not lease modifications. In many cases, this will result in accounting for the
concession as variable lease payments in the period(s) in which the event or condition that triggers the
reduced payment occurs. The Group is currently assessing the impact of this amendment.
Amendments to IAS 1, ‘Presentation of financial statements’ (effective for annual periods beginning on
or after 1 January 2022). These amendments clarify that liabilities are classified as either current or non-
current, depending on the rights that exist at the end of the reporting period. Classification is unaffected
by the expectations of the entity or events after the reporting date. The amendments also clarify what
IAS 1 means when it refers to the ‘settlement’ of a liability. The Group is currently assessing the impact
of this amendment.
Narrow scope amendments to IAS 1, Practice statement 2 and IAS 8 (effective for annual periods
beginning on or after 1 January 2023). The amendments aim to improve accounting policy disclosures
and to help users of the financial statements to distinguish between changes in accounting estimates
and changes in accounting policies. The Group is currently assessing the impact of this amendment.
Amendment to IAS 12 – deferred tax related to assets and liabilities arising from a single transaction
(effective for annual periods beginning on or after 1 January 2023). These amendments require
companies to recognise deferred tax on transactions that, on initial recognition give rise to equal amounts
of taxable and deductible temporary differences. The Group is currently assessing the impact of this
amendment.
75 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 13
2. Summary of Significant Accounting Policies (Continued)
(a) Basis of preparation (continued)
Standards, interpretations and amendments to published standards that are not yet effective
Amendments to IFRS 3, ‘Business combinations’ (effective for annual periods beginning on or after 1
January 2022). Minor amendments were made to update the references to the Conceptual Framework
for Financial Reporting and add an exception for the recognition of liabilities and contingent liabilities
within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and Interpretation 21
Levies. The amendments also confirm that contingent assets should not be recognised at the acquisition
date. The Group will apply this amendment to future transactions.
Amendments to IAS 37, ‘Provisions, contingent liabilities and contingent assets’ (effective for annual
periods beginning on or after 1 January 2022). This amendment specifies which costs a company
includes when assessing whether a contract will be loss making. It clarifies that the direct costs of fulfilling
a contract include both the incremental costs of fulfilling the contract and an allocation of other costs
directly related to fulfilling contracts. Before recognising a separate provision for an onerous contract,
the entity recognises any impairment loss that has occurred on assets used in fulfilling the contract. The
Group is currently assessing the impact of this amendment.
Annual improvements to IFRSs 2019 – 2021 cycles (effective for annual periods beginning on or after 1
January 2022). These amendments include minor changes to the following standards: - IFRS 9,
‘Financial instruments’ - IFRS 16, ‘Leases’ - IFRS 1, ‘First-time adoption of International Financial
Reporting Standards - IAS 41, ‘Agriculture. The Group is currently assessing the impact of these
improvements.
There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to have a
material impact on the Group.
(b) Basis of consolidation
Subsidiaries are all entities (including structured entities) over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding of more than one half of the voting
rights. The existence and effect of potential voting rights that are currently exercisable or convertible are
considered when assessing whether the Group controls another entity. The Group also assesses existence
of control where it does not have more than 50% of the voting power but is able to govern the financial and
operating policies by virtue of de-facto control. De-facto control may arise in circumstances where the size
of the Group’s voting rights relative to the size and dispersion of holdings of other shareholders give the
Group the power to govern the financial and operating policies, etc.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are
deconsolidated from the date that control ceases.
The Group applies the acquisition method to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred
to the former owners of the acquiree and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability resulting from a contingent consideration
arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. The Group recognises any non-
controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-
controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets.
75 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 14
2. Summary of Significant Accounting Policies (Continued)
(b) Basis of consolidation (continued)
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit
or loss. Any contingent consideration to be transferred by the Group is recognised at fair value at the
acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be
an asset or liability is recognised in accordance with IFRS 9 either in profit or loss or as a change to other
comprehensive income. Contingent consideration that is classified as equity is not remeasured, and its
subsequent settlement is accounted for within equity.
Goodwill is initially measured as the excess of the aggregate of the consideration transferred, the amount of
any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest
over the fair value of the net identifiable assets acquired and liabilities assumed. If this consideration is lower
than the fair value of the net assets of the subsidiary acquired, the difference is recognised in profit or loss.
Inter-company transactions, balances, income and expenses on transactions between group companies are
eliminated. Profits and losses resulting from inter-company transactions that are recognised in assets are
also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity
transactions – that is, as transactions with the owners in their capacity as owners. The difference between
fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the
subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded
in equity.
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 15
2. Summary of Significant Accounting Policies (Continued)
(b) Basis of consolidation (continued)
When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at
the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value
is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an
associate, joint venture or financial asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the
related assets or liabilities. This may mean that amounts previously recognised in other comprehensive
income are reclassified to profit or loss.
The company’s subsidiaries are listed below, which together with the company are referred to as ‘the Group’
Entity
General Accident Insurance Company
(Trinidad) Limited (formerly Motor One
Insurance Limited) (i)
Country of
Incorporati
on and
place of
business
Trinidad and
Tobago
General Accident Insurance Company
(Barbados) Limited (ii)
Barbados
Proportion of
ordinary shares
held by the Group
%
Proportion of
ordinary
shares held
by non-
controlling
interests%
65
80
35
20
Nature of
business
General
Insurance
Services
General
Insurance
Services
(i)
In June 2020, the company increased its shareholding in Motor One Insurance Company Limited from
55% to 65%. In October 2020, it was re-named General Accident Insurance Company (Trinidad) Limited
(GENACTT).
(ii) General Accident Insurance Company (Barbados) Limited (GENACBB) was incorporated in 2019 but
was not capitalised until February 2020. The company commenced trading in March 2020.
(c) Revenue and income recognition
Revenue comprises the fair value of the consideration received or receivable for the provision of services in
the ordinary course of the Group’s activities. Revenue is shown net of General Consumption Tax and is
recognised as follows:
Insurance services
Gross premiums written are recognised on a pro-rated basis over the life of the policies written. The portion
of premiums written in the current year which relates to coverage in subsequent years is deferred as
unearned premiums (Note 2(s)(i)).
Commissions payable on premium income and commissions receivable on reinsurance of risks are charged
and credited to profit or loss, respectively, over the life of the policies.
Interest income
Interest income is recognised on a time-proportion basis using the effective interest method. When a
receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated
future cash flow discounted at the original effective interest rate of the instrument and continues unwinding
the discount as interest income.
Dividend
Dividend income for equities is recognised when the right to receive payment is established.
77 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 16
2. Summary of Significant Accounting Policies (Continued)
(c) Revenue and income recognition (continued)
Rental income
Rental income is recognised on an accrual basis.
(d) Cash and cash equivalents
Cash and cash equivalents are stated at amortised cost. For purposes of the cash flow statement, cash and
cash equivalents comprise balances with maturity dates of less than 90 days from the dates of acquisition
including cash and bank balances and deposits held on call with banks.
(e) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of the Group are measured using the currency of the primary
economic environment in which it operates (the functional currency). The financial statements are
presented in Jamaican dollars which is also the Group’s functional currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end exchange rates of monetary assets
and liabilities denominated in foreign currencies are recognised in profit or loss.
Changes in the fair value of monetary assets denominated in foreign currencies and classified at
amortised cost are analysed between translation differences resulting from changes in the amortised
cost of the asset and other changes. Translation differences resulting from the changes in amortised
cost are recognised in the profit or loss, and other changes are recognised in other comprehensive
income (OCI).
(f) Financial instruments
Financial instruments carried on the statement of financial position include investments, due to and from related
parties, due to and from reinsurers and coinsurers, due from policyholders, brokers and agents, loans and other
receivables, cash and short term investments, other liabilities and claims liabilities. The particular recognition
methods adopted are disclosed in the individual policy statements associated with each item. The fair values
of the Group’s financial instruments are discussed in Note 6.
(g) Financial assets
(i) Classification
The Group classifies its financial assets in the following measurement categories:
At fair value (either through OCI or through profit or loss); and
At amortised cost.
The classification is based on the Group’s business model for managing the financial assets and the
contractual terms of the cash flows.
For assets measured at fair value, gains and losses are recorded in profit or loss or OCI.
The Group will reclassify debt investments when and only when its business model for managing those
assets changes.
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 17
2. Summary of Significant Accounting Policies (Continued)
(g) Financial assets (continued)
(ii) Recognition and derecognition
Purchases and sales of financial assets are recognised on trade-date, the date on which the Group
commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or have been transferred and the Group has
transferred substantially all the risks and rewards of ownership.
(iii) Measurement
At initial recognition, the Group measures a financial asset at its fair value plus transaction cost directly
attributable to the acquisition of the financial asset in the case of a financial asset not at fair value through
profit or loss (FVPL). Transaction costs that are directly attributable to the acquisition of the financial
asset carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether
their cash flows are solely payment of principal and interest.
Debt instruments
Subsequent measurement of debt instruments is based on the Group’s business model for managing
the asset and the cash flow characteristics of the asset. There are three measurement categories into
which the Group classifies its debt instruments:
Amortised cost - Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. Interest income
from these financial assets are included in investment income using the effective interest rate method.
Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in
gains/(losses). Impairment losses are presented as separate line item in profit or loss.
FVOCI – Financial assets that are held for collection of contractual cash flows and for selling, where
the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI.
Movements in the carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interest income and foreign exchange gains and losses which are recognised in profit
or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity to profit or loss and recognized in other gains/(losses). Interest
income from these financial assets is included in investment income using the effective interest rate
method. Foreign exchange gains and losses are presented in gains/(losses) and impairment
expenses are presented as separate line item in the statement of profit or loss.
FVPL - Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL.
Gains or losses on a debt investment that is subsequently measured at FVPL is recognised in profit
or loss and presented net within other gains/(losses) in the period in which it arises.
Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s
management has elected to present fair value gains and losses on equity investments in OCI, there
is no subsequent reclassification of fair value gains and losses to profit or loss following the
derecognition of the investment. Dividends from such investments continue to be recognised in profit
or loss when the Group’s right to receive payment is established.
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 18
2.Summary of Significant Accounting Policies (Continued)
(g) Financial Assets (continued)
Changes in the fair value of financial assets at FVPL are recognised in gains/(losses) in profit or loss as
applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at
FVOCI are not reported separately from other changes in fair value.
(iii) Impairment
The Group assesses on a forward looking basis the expected credit losses associated with its debt
instruments carried at amortised cost (include cash and cash equivalent, excluding bank balances) and
FVOCI. The impairment methodology applied depends on whether there has been a significant increase
in credit risk.
For receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected
lifetime losses to be recognised from initial recognition of the receivables, see note 4 for further details.
(h) Receivables and payables related to insurance contracts
Receivables and payables related to insurance contracts are recognised when due. These include amounts
due to and from agents, brokers and insurance contract holders.
(i) Leases
The Group’s leases originate from the rental agreements for various office buildings.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leases
asset is available for use by the Group.
Assets and liabilities arising from a lease are initially measured on a present value basis.
Lease liabilities include the net present value of the following lease payments:
i)
ii)
iii)
iv)
v)
Fixed payments (including in-substance fixed payments), les any lease incentives receivables
Variable lease payments that are based on an index or a rate
Amounts expected to be payable by the lessee under residual value guarantees
The exercise price of a purchase option if the lessee is reasonably certain to exercise that option,
and
Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising
that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be
determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to
pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with
similar terms and conditions. To determine the incremental borrowing rate, the Group uses existing borrowing
rates from our existing banks, as no entity within the Group have existing borrowings.
The Group is exposed to potential future increases in variable lease payments based on an index or rate,
which are not included in the lease liability until they take effect. When adjustments to lease payments based
on an index or a rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit
or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.
81 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 19
2.
Summary of Significant Accounting Policies (Continued)
(i) Leases (continued)
Right-of-use assets are measures at cost comprising the following:
The amount of initial measurement of lease liability
Any lease payments made at or before the commencement date less any lease incentives received
Any initial direct costs, and
Restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term
on a straight-line basis.
The lease term is determined as the non-cancellable period of the lease and takes account of extension and
termination options if it is reasonably certain to be exercised. Majority of extension and termination options
held are exercisable only by the Group and not by the respective lessor. The assessment of reasonable
certainty is only revised if a significant event or a significant change in circumstances occurs, which affects
this assessment, and that is within the control of the Group.
(j)
Insurance contracts
Insurance contracts are those contracts that transfer significant insurance risk. The Group’s insurance
contracts are classified as short-term insurance contracts which include casualty and property insurance
contracts.
Casualty insurance contracts protect the Group’s customers against the risk of causing harm to third parties
as a result of their legitimate activities. Damages covered include both contractual and non-contractual
events. The typical protection offered is designed for employers who become legally liable to pay
compensation to injured employees (employer’s liability) and business customers who become liable to pay
compensation to a third party for bodily harm or property damage (public liability).
Property insurance contracts mainly compensate the Group’s customers for damage suffered to their
properties or for the value of property lost. Customers who undertake commercial activities on their premises
could also receive compensation for loss of earnings caused by the inability to use the insured properties in
their business activities (business interruption cover).
Premiums are recognised as revenue (earned premiums) proportionally over the period of coverage. The
portion of premium received on in-force contracts that relates to unexpired risk at the date of the statement
of financial position is reported as unearned premium in Insurance Reserves. Premiums are shown before
deductible commission.
Claims and loss adjustments expenses are charged to profit or loss as incurred based on estimated liability
for compensation owed to contract holders or third parties damaged by the contract holders. They include
direct and indirect claims settlement costs and arise from events that have occurred up to the date of the
statement of financial position even if they have not yet been reported to the Group. The Group does not
discount its liabilities for unpaid claims. Liabilities for unpaid claims are estimated using the input of
assessments for individual cases reported to the Group. Statistical analysis is used to estimate claims
incurred but not reported, as well as the expected ultimate cost of more complex claims that may be affected
by external factors.
81 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
2. Summary of Significant Accounting Policies (Continued)
Page 20
(k) Deferred policy acquisition costs
The cost of acquiring and renewing insurance contracts, including commissions, underwriting and policy
issue expenses, which vary with and are directly related to the contracts, are deferred over the unexpired
period of risk carried. Deferred policy acquisition costs are subject to recoverability testing at the time of
policy issue and at the end of each accounting period.
(l) Reinsurance ceded
Contracts entered into by the Group with reinsurers under which the Group is compensated for losses on one
or more contracts issued by the Group are classified as reinsurance contracts.
The benefits to which the Group is entitled under its reinsurance contracts held are recognised as reinsurance
assets. These assets consist of short–term balances due from reinsurers as well as longer term receivables
that are dependent on the expected claims and benefits arising under the related reinsurance contracts.
Amounts recoverable from or due to reinsurers are measured consistently with amounts associated with the
reinsured insurance contracts and in accordance with the terms of each reinsurance contract. Reinsurance
liabilities are primarily premiums payable for reinsurance contracts and are recognised as an expense when
due.
Estimated amounts of reinsurance recoverable, which represent the portion of unearned premiums ceded to
the reinsurers, are included in recoverable from reinsurers on the statement of financial position.
The Group relies upon reinsurance agreements to limit the potential for losses and to increase its capacity
to write insurance. Reinsurance arrangements are effected under reinsurance treaties and by negotiation on
individual risks. Reinsurance does not relieve the Group from liability to its policyholders. To the extent that
a reinsurer may be unable to pay losses for which it is liable under the terms of the reinsurance agreement,
the Group is exposed to the risk of continued liability for such losses. However, in an effort to reduce the risk
of non-payment, the Group requires all of its reinsurers to have A.M. Best or Standard & Poors or equivalent
rating of A- or better.
If there is objective evidence that the reinsurance asset is impaired, the Group reduces the carrying amount
of the reinsurance asset to its recoverable amount and recognises that impairment loss in profit or loss.
(m) Property, plant and equipment
Land is stated at historical cost. All other property, plant and equipment are stated at historical cost less
accumulated depreciation and impairment. Depreciation is computed on the straight-line method at rates
estimated to write off the assets over their expected useful lives as follows:
Buildings
Furniture, fixtures and equipment
Motor vehicles
5% and 2.5%
10%
20%
Property, plant and equipment are reviewed periodically for impairment. Where the carrying amount of an
asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable
amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount and
are included in operating profit.
Repairs and maintenance expenses are charged to profit or loss during the financial period in which they are
incurred. The cost of major renovations is included in the carrying amount of the asset when it is probable
that future economic benefits in excess of the originally assessed standard of performance of the existing
asset will flow to the Group. Major renovations are depreciated over the remaining useful life of the related
asset.
83 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 21
2. Summary of Significant Accounting Policies (Continued)
(n)
Intangible assets
Computer software
Acquired software licences are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software. These costs are amortised on the basis of the expected useful life, which is between three
to five years.
Renewal rights
Renewal rights are recorded at cost and represent the value of consideration paid to acquire polices in force
with high renewal probability. These costs are amortised over the estimated useful life of the rights, which
ranges from 4- 5 years.
Distribution relationships
Distribution relationships are recorded at cost and represent the value of consideration paid to acquire
existing intermediary distribution channels. These costs are amortised over the estimated useful life these
relationships which is approximately 8 years.
Licence
Licence are recorded at cost and represent the value of consideration paid to acquire regulatory licence to
operate in a regulatory environment. Licence have an indefinite useful live and is assessed annually for
impairment and are carried at cost less accumulated impairment losses.
(o)
Impairment of long-lived assets
Long-lived assets are reviewed for impairment losses whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which
the carrying amount of the asset exceeds its recoverable amount, which is the higher of an asset’s net selling
price and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows.
(p)
Investment properties
Investment property comprise significant portions of freehold residential buildings that are held for long-term
rental yield and/or for capital appreciation.
Investment properties are treated as a long-term investment, initially recognized at cost and subsequently
carried at fair value, based on fair market valuation exercise conducted annually by independent qualified
values. Changes in fair values are recorded in the income statement.
(q) Real estate investment
Real estate investment represents the Group's beneficial interest in properties which are leased to third
parties and held in trust for a group of investors under a Trust Deed. The Group shares in the rental income
from the lease of properties as well as fair value appreciation on the properties based on valuations carried
out by independent valuators from time to time. The Group's share of lease income is recorded in the
statement of comprehensive income. The appreciation is recorded in OCI.
83 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
2. Summary of Significant Accounting Policies (Continued)
Page 22
(r)
Insurance reserves
Under the Jamaican Insurance Regulations, 2001, the Group is required to actuarially value its insurance
reserves annually. Consequently, provision for claims incurred but not reported (IBNR) has been independently
actuarially determined. The remaining components of the reserves are also reviewed by the actuary in
determining the overall adequacy of the provision for the Group’s insurance liabilities.
A statutory reserve is maintained in accordance with the provisions of Section 171 of the Insurance Act, 1980
of Trinidad and Tobago whereby companies are required to appropriate towards statutory reserve at least 25%
of the profit of the preceding year until the excess of assets over liabilities equals or exceeds the reserve in
respect of its unearned premiums.
(i)
Provision for unearned premium
The provision for unearned premium represents that proportion of premiums written in respect of risks
to be borne subsequent to the year end, under contracts entered into on or before the date of the
statement of financial position and is computed by applying the “365th” method to gross written premiums
for the period, except for marine where the unearned premium reserve is calculated as 20% of the year’s
gross written premiums.
(ii) Unearned commission
The unearned commission represents the actual commission income on premium ceded on proportional
reinsurance contracts relating to the unexpired period of risk carried. The income is deferred as unearned
commission reserves, and amortised over the period in which the commissions are expected to be earned.
These reserves are calculated on the 365th method.
(iii) Claims outstanding
A provision is made to cover the estimated cost of settling claims arising out of events which occurred
by the year end, including claims incurred but not reported (IBNR), less amounts already paid in respect
of those claims. This provision is estimated by management (insurance case reserves) and the
appointed actuary (IBNR) on the basis of claims admitted and intimated.
(iv) Claims incurred but not reported
The reserve for IBNR claims has been calculated by an independent actuary using the Paid Loss
Development method, the Incurred Loss Development method, the Bornhuetter-Ferguson Paid Loss
method, the Bornhuetter-Ferguson Incurred Loss method, the Expected Loss Ratio method and the
Frequency-Severity method (Note 32). This calculation is done in accordance with the Insurance Act
2001.
(v) The provision for unexpired period of risks is determined by the appointed actuary and represents the
expected future costs associated with the unexpired portion of policies in force as of the reporting date,
in excess of the net unearned premium minus deferred policy acquisition costs
(vi) At the end of each reporting period, liability adequacy tests are performed to ensure the adequacy of the
policy liabilities, net of related deferred policy acquisition costs. In performing these tests, current best
estimates of future contractual cashflows are compared to the carrying amount of policy liabilities and
any deficiency is immediately recognised in profit or loss as unexpired risk provision.
85 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
2. Summary of Significant Accounting Policies (Continued)
(s) Accounts payable
Payables are recognised at fair value and subsequently measured at amortised cost.
Page 23
(t) Taxation
Taxation on the profit or loss for the year comprises current and deferred tax. Current and deferred taxes are
recognised as income tax expense or benefit in net profit or loss in the statement of comprehensive income
except where they relate to items recorded in other comprehensive income or equity, in which case they are
also charged or credited to other comprehensive income or equity.
(i) Current taxation
Current tax is the expected taxation payable on the taxable income for the year, using tax rates enacted
at date of the statement of financial position, and any adjustment to tax payable and tax losses in respect
of the previous years.
(ii) Deferred income taxes
Deferred tax liabilities are recognised for temporary differences between the carrying amounts of assets
and liabilities and their amounts as measured for tax purposes, which will result in taxable amounts in
future periods. Deferred tax assets are recognised for temporary differences which will result in
deductible amounts in future periods, but only to the extent it is probable that sufficient taxable profits
will be available against which these differences can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
in which the asset will be realised or the liability will be settled based on enacted rates.
(u) Employee benefits
(i) Pension obligations
The Group participates in the defined contribution pension plan of a related company, T. Geddes Grant
(Distributors) Limited. A defined contribution pension plan is a pension plan under which the Group pays
fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to
employee service in the current and prior periods. The contributions paid by the Group are recorded as
an expense in profit or loss.
(ii) Accrued vacation
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is
made for the estimated liability for annual leave as a result of services rendered by employees up to the
date of the statement of financial position.
(iii) Termination benefits
Termination benefits are payable whenever an employee’s employment is terminated before the normal
retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits.
The Group recognises termination benefits when it is demonstrably committed to either terminating the
employment of current employees according to a detailed formal plan without possibility of withdrawal or
providing termination benefits as a result of an offer made to encourage voluntary redundancy.
(iv) Profit-sharing and bonus plan
The Group recognises a liability and an expense for bonuses and profit-sharing, based on a formula that
takes into consideration the profit attributable to the Group’s shareholders after certain adjustments. The
Group recognises a provision where contractually obliged or where there is a past practice that has
created a constructive obligation.
85 2021 | GENERAL ACCIDENT ANNUAL REPORT
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Page 24
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
2. Summary of Significant Accounting Policies (Continued)
(v) Dividend distribution
Dividend distribution to the company’s shareholders is recognised as an appropriation in the Group’s financial
statements in the period in which the dividends are approved by the Board of Directors.
(w) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, which is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Board of Directors that
makes strategic decisions.
3. Responsibilities of the Appointed Actuary and External Auditors
The Board of Directors, pursuant to the Insurance Act, appoints the Actuary. His responsibility is to carry out an
annual valuation of the Group’s claims liabilities and insurance reserves in accordance with accepted actuarial
practice and regulatory requirements and report thereon to the shareholders. In performing the valuation, the Actuary
analyses past experience with respect to number of claims, claims payment and changes in estimates of outstanding
liabilities.
The shareholders, pursuant to the Companies Act, appoint the external auditors. Their responsibility is to conduct
an independent and objective audit of the financial statements in accordance with International Standards on
Auditing and report thereon to the shareholders. In carrying out their audit, the auditors also make use of the work
of the appointed Actuary and his report on claims liabilities and insurance reserves.
87 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 25
4.
Insurance and Financial Risk Management
(a)
Insurance risk
The Group’s activities expose it to a variety of insurance and financial risks and those activities necessitate
the analysis, evaluation, control and/or acceptance of some degree of risk or combination of risks. Taking
various types of risk is core to the financial services business and operational risks are an inevitable
consequence of being in business. The Group’s aim is therefore to achieve an appropriate balance between
risk and return and minimise potential adverse effects on the Group’s financial performance.
The Board of Directors is ultimately responsible for the establishment and oversight of the risk management
framework. The Board of Directors has established committees and departments for managing and monitoring
risks, as follows:
(i)
Investment and Loan Committee
The Investment and Loan Committee is responsible for monitoring and approving investment strategies
for the Group.
(ii) Finance Department
The Finance Department is responsible for managing the Group’s assets and liabilities and the overall
financial structure. It is also primarily responsible for managing the funding and liquidity risks of the
Group.
(iii) Conduct Review Committee
The Conduct Review Committee is responsible for monitoring the Group’s adherence to regulatory and
statutory requirements.
(iv) Audit Committee
The Audit Committee oversees how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework in
relation to the risks faced by the Group.
(v) Remuneration Committee
The remuneration committee is responsible for reviewing and recommending for approval, the
remuneration arrangements of the directors and senior officers.
The most important types of risk are insurance risk, reinsurance risk, credit risk, liquidity risk, market risk and
other operational risk. Market risk includes currency risk, interest rate and other price risk.
The Group issues contracts that transfer insurance risk. This section summarises these risks and the way
the Group manages them.
The risk under any one insurance contract is the possibility that the insured event occurs and the uncertainty
of the amount of the resulting claim. By the very nature of an insurance contract, this risk is random and
therefore unpredictable.
The principal risk that the Group faces under its insurance contracts is that the actual claim payments exceed
the carrying amount of the insurance liabilities. This could occur because the frequency or severity of claims
and benefits are greater than estimated. Insurance events are random and the actual number and amount of
claims and benefits will vary from year to year from the level established using statistical techniques
87 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 26
4. Insurance and Financial Risk Management (Continued)
(a)
Insurance risk (continued)
Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative variability
about the expected outcome will be. In addition, a more diversified portfolio is less likely to be affected across
the board by a change in any subset of the portfolio. The Group has developed its insurance underwriting
strategy to diversify the types of insurance risks accepted to achieve a sufficiently large population of risks to
reduce the variability of the expected outcome.
Factors that increase insurance risk include lack of risk diversification in terms of type and amount of risk and
geographical location.
Management maintains an appropriate balance between commercial and personal policies and type of policies
based on guidelines set by the Board of Directors. Insurance risk arising from the Group’s insurance contracts
are, however, concentrated within Jamaica and Trinidad and Tobago.
The Group has the right to re-price the risk on renewal. It also has the ability to impose deductibles and reject
fraudulent claims. Where applicable, contracts are underwritten by reference to the commercial replacement
value of the properties or other assets and contents insured. Claims payment limits are always included to cap
the amount payable on occurrence of the insured event. The cost of rebuilding properties, of replacement or
indemnity for other assets and contents and time taken to restart operations for business interruption are the
key factors that influence the level of claims under these policies.
Claims on insurance contracts are payable on a claims-occurrence basis. The Group is liable for all insured
events that occurred during the term of the contract, even if the loss is discovered after the end of the contract
term. This is however subject to the policy limit. Liability claims are settled over a long period of time and a
portion of the claims provision relates to incurred but not reported (IBNR) claims. There are several variables
that affect the amount and timing of cash flows from these contracts. These mainly relate to the inherent risks
of the business activities carried out by individual contract holders and the risk management procedures they
adopted. The compensation paid on these contracts is the monetary awards granted for bodily injury suffered
by employees (for employer’s liability covers) or members of the public (for public liability covers). Such awards
are lump-sum payments that are calculated as the present value of the lost earnings and rehabilitation
expenses that the injured party will incur as a result of the accident.
The estimated cost of claims includes direct expenses to be incurred in settling claims, net of the expected
subrogation value and other recoveries. The Group takes all reasonable steps to ensure that it has appropriate
information regarding its claims exposures. However, given the uncertainty in establishing the claims
provisions, it is likely that the final outcome will prove to be different from the original liability established. The
liability for these contracts comprises a provision for IBNR, a provision for reported claims not yet paid and a
provision for unexpired risks at the date of financial position. The amount of casualty claims is particularly
sensitive to the level of court awards and to the development of legal precedent on matters of contract and tort.
Casualty contracts are also subject to the emergence of new types of latent claims, but no allowance is included
for this at the date of the statement of financial position.
In calculating the estimated cost of unpaid claims (both reported and not), the Group uses estimation
techniques that are a combination of loss-ratio-based estimates (where the loss ratio is defined as the ratio
between the ultimate cost of insurance claims and insurance premiums earned in a particular financial year
in relation to such claims) and an estimate based upon actual claims experience using predetermined
formulae where greater weight is given to actual claims experience as time passes.
89 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 27
4.
Insurance and Financial Risk Management (Continued)
(a)
Insurance risk (continued)
The initial loss-ratio estimate is an important assumption in the estimation technique and is based on previous
years’ experience, adjusted for factors such as premium rate changes, anticipated market experience and
historical claims inflation. The initial estimate of the loss ratios used for the current year (before reinsurance) is
analysed by type of risk for current and prior year premiums earned.
The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost
of settling claims already notified to the Group, where information about the claim event is available. IBNR
claims may not be apparent to the insured until many years after the event that gave rise to the claims. For
casualty contracts, the IBNR proportion of the total liability is high and will typically display greater variations
between initial estimates and final outcomes because of the greater degree of difficulty of estimating these
liabilities.
In estimating the liability for the cost of reported claims not yet paid, the Group considers any information
available from loss adjusters and information on the cost of settling claims with similar characteristics in
previous periods. Large claims are assessed on a case-by-case basis or projected separately in order to
allow for the possible distortive effect of their development and incidence on the rest of the portfolio.
Management sets policy and retention limits based on guidelines set by the Board of Directors. The policy limit
and maximum net retention of any one risk for each class of insurance for the year are as follows:
Jamaica
Commercial property –
Fire and consequential loss
Personal property
Engineering
Liability
Marine, aviation and transport
Motor
Miscellaneous Accident –
All Risk
Burglary
Cash/Money
Fidelity
Bonds
Goods in Transit
Personal Accident
2021
2020
Policy
Limit
’000
Maximum
Net
Retention
’000
Policy
Limit
’000
Maximum
Net
Retention
’000
US$8,000
US$8,000
US$5,000
J$93,000
US$2,000
J$10,000
J$30,000
J$6,250
J$5,000
J$5,000
J$100,000
J$5,000
J$10,000
US$800
US$800
US$125
J$5,000
US$125
J$5,000
US$8,000
US$8,000
US$5,000
J$93,000
US$2,000
J$10,000
J$2,000
J$1,250
J$1,000
J$1,000
J$20,000
J$1,000
J$2,000
J$30,000
J$6,250
J$5,000
J$5,000
J$100,000
J$5,000
J$10,000
US$800
US$800
US$125
J$5,000
US$125
J$5,000
J$2,000
J$1,250
J$1,000
J$1,000
J$20,000
J$1,000
J$2,000
2021 | GENERAL ACCIDENT ANNUAL REPORT 90
89 2021 | GENERAL ACCIDENT ANNUAL REPORT
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4. Insurance and Financial Risk Management (Continued)
Page 28
2021
2020
Policy
Limit
’000
Maximum
Net
Retention
’000
Policy
Limit
’000
Maximum
Net
Retention
’000
TT$50,000
TT$50,000
TT$5,200
TT$5,200
TT$2,010
TT$435
TT$335
TT$335
TT$2,500
TT$670
TT$335
BB$16,000
BB$16,000
BB$16,000
BB$22,500
BB$400
BB$16,000
BB$600
BB$130
BB$100
BB$100
BB$2,000
BB$100
BB$200
TT$5,000
TT$5,000
TT$800
TT$800
-
-
-
TT$5,200
-
-
-
TT$800
TT$134
TT$87
TT$67
TT$67
TT$500
TT$134
TT$67
-
-
-
-
-
-
-
-
-
-
-
-
-
-
BB$1,600
BB$1,600
BB$1,600
BB$150
BB$400
BB$1,600
BB$16,000
BB$16,000
BB$16,000
BB$22,500
BB$400
BB$16,000
BB$40
BB$26
BB$20
BB$20
BB$400
BB$20
BB$40
BB$600
BB$130
BB$100
BB$100
BB$2,000
BB$100
BB$200
BB$1,600
BB$1,600
BB$1,600
BB$150
BB$400
BB$1,600
BB$40
BB$26
BB$20
BB$20
BB$400
BB$20
BB$40
Trinidad and Tobago
Commercial property –
Fire and consequential loss
Personal property
Liability
Motor
Miscellaneous Accident –
All Risk
Burglary
Cash/Money
Fidelity
Bonds
Goods in Transit
Personal Accident
Barbados
Commercial property –
Fire and consequential loss
Personal property
Engineering
Liability
Marine, aviation and transport
Motor
Miscellaneous Accident –
All Risk
Burglary
Cash/Money
Fidelity
Bonds
Goods in Transit
Personal Accident
91 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 29
4. Insurance and Financial Risk Management (Continued)
(a)
Insurance risk (continued)
Sensitivity Analysis of Actuarial Liabilities
The determination of actuarial liabilities is sensitive to a number of assumptions, and changes in those
assumptions could have a significant effect on the valuation results.
In applying the noted methodologies, the following assumptions were made:
(i) Claims inflation has remained relatively constant and there have been no material legislative changes in
the Jamaican civil justice system that would cause claim inflation to increase dramatically.
(ii) There is no latent environmental or asbestos exposure embedded in the Group’s loss history.
(iii) The Group’s case reserving and claim payments rates have remained, and will remain, relatively constant.
(iv) The overall development of claims costs gross of reinsurance is not materially different from the
development of claims costs net of reinsurance. This assumption is supported by the following:
The majority of the Group’s reinsurance program consists of proportional reinsurance agreements; and
The Group’s non-proportional reinsurance agreements consist primarily of high attachment points.
(v) Claims are expressed at their estimated ultimate undiscounted value, in accordance with the requirement
of the Insurance Act, 2001.
Scenario Testing:
The two major assumptions that determine reserve levels are:
The selection of a-priori loss ratios within the Bornhuetter-Ferguson methods
The selection of loss development factors.
These factors have been stochastically modeled using various confidence intervals to determine the impact
on the net reserves. The net reserves of $4,187,987,000 for the Group and $1,793,911,000 for th Company
(Note 33) were determined at
interval
increase/(decrease) by $106,877,000/
the net
increased/(decreased) by 10%,
($136,095,000) for the Group and $70,946,000/($88,682,000) for the Company.
the 50% confidence
reserves would
the confidence
interval. Had
Provision for adverse deviation assumptions
The basic assumptions made in establishing insurance reserves are best estimates for a range of possible
outcomes. To recognise the uncertainty in establishing these best estimates, to allow for possible deterioration
in experience and to provide greater comfort that the reserves are adequate to pay future benefits, the
appointed actuary is required to include a margin for adverse deviation in each assumption.
91 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
(a)
Insurance risk (continued)
Page 30
Development Claim Liabilities
In addition to sensitivity analysis, the development of insurance liabilities provides a measure of the Group’s ability to estimate the ultimate value of claims. The table below illustrates how the Group’s estimate of the ultimate
claims liability for accident years 2013 - 2021 has changed at successive year-ends, up to 2021. Updated unpaid claims and adjustment expenses (UCAE) and IBNR estimates in each successive year, as well as amounts paid to
date are used to derive the revised amounts for the ultimate claims liability for each accident year, used in the development calculations.
2014
$’000
314,016
514,158
432,663
2014
and
prior
$’000
1,265,108
1,569,903
1,525,849
2015
$’000
2015
And
Prior
$’000
2016
$’000
2016
and
prior
$’000
2017
$’000
2017
and
prior
$’000
2018
2019
2020
2018
and
prior
$’000
2019
and
prior
$’000
$’000
$’000
$’000
2020
and
prior
$’000
2021
$’000
2021
and
prior
$’000
303,654
350,290
156,241
14.43%
1,139,749
1,903,341
1,239,328
-38.33%
346,094
515,330
241,648
1,485,852
2,418,670
1,480,976
97,621
403,168
195,802
-5.64%
582,261
1,502,479
815,504
-30.50%
295,468
456,157
218,220
-28.12%
877,729
1,958,636
1,033,724
0.76%
379,721
550,051
200,066
1,257,450
2,508,687
1,233,790
107,645
399,848
214,595
376,174
1,247,817
388,041
132,979
430,798
322,845
509,153
1,678,615
710,885
411,945
424,106
384,889
921,097
2,102,720
1,095,774
407,102
658,944
426,773
1,328,199
2,761,664
1,522,547
-18.65%
76,584
301,702
73,834
-20.62%
267,793
933,857
149,877
-56.16%
65,710
414,858
140,974
3.16%
333,503
1,348,714
290,851
-62.77%
84,396
364,568
200,408
-10.08%
417,899
1,713,283
491,259
419,091
403,829
251,701
836,990
2,117,111
742,960
704,090
702,263
361653
1,541,080
2,819,374
1,104,613
-1.50%
194,470
11.43%
499,086
-38.71%
249,011
13.84%
748,097
-41.49%
149,021
5.32%
897,118
1.02%
158,262
13.70%
1,055,380
495868
1,551,248
2,193,341
102,272
349,416
220,240
569,656
211,293
780,949
258,251
1,039,200
367971
1,407,171
2,132,124
35,327
51,272
84,726
135,999
138,151
274,150
172,455
446,604
217,437
664,041
1,016,918
3.09%
-5.49%
-38.46%
18.60%
-32.62%
12.06%
7.15%
21.15%
-1.63%
7.68%
642,092
724,954
352,877
-
20.19%
69,505
45,593
(1,057)
199,438
199,014
(22,771)
127,829
142,321
25,142
327,267
341,335
2,371
120,131
179,586
70,651
447,397
520,920
73,022
146,510
244,074
91,988
593,908
764,994
165,010
146478
498,845
148,783
740,385 621,611
1,361,996
677,161
1,113,839 498,791
313,793 159,783
1,612,630
473,577
734,770
337,154
2,039,157
2,347,401
810,773
-5.58%
9,622
36,832
44,739
4.68%
37.18%
-19.49%
35.41%
-12.43%
-2.38%
-20.26%
7.15%
-5.22%
18.77%
9.50%
-
-
76,048
62,350
91,800
33,826
48,318
41,178
109,874
162,386
132,978
69,548
167,737
51,722
179,422
330,123
184,700
100,762
142,130
72,827
280,184
472,253
257,527
74,660
265,274
120,474
354,844
84,965
737,527 266,214
539,809
1,003,741
577,580
461,939
1,112,715
682,569
1,465,681
671,032
1,795,284
2,136,712
378,001
57,080
535,081
81,527
616,608
392,469
1,009,077
24.81%
(32.65%)
1.41%
(24.31%)
(23.58%)
(25.43%)
(9.03%)
(10.21%)
(0.31%)
(0.86%)
(7.64%)
(0.36%)
4.58%
1.17%
-
-
2014 Paid during year
2015
2016
2017
2018
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
2019
Paid during year
2020
2021
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
93 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 94
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
(a)
Insurance risk (continued)
Development Claim Liabilities
In addition to sensitivity analysis, the development of insurance liabilities provides a measure of the Group’s ability to estimate the ultimate value of claims. The table below illustrates how the Group’s estimate of the ultimate
claims liability for accident years 2013 - 2021 has changed at successive year-ends, up to 2021. Updated unpaid claims and adjustment expenses (UCAE) and IBNR estimates in each successive year, as well as amounts paid to
date are used to derive the revised amounts for the ultimate claims liability for each accident year, used in the development calculations.
2014 Paid during year
2014
and
prior
$’000
$’000
314,016
1,265,108
514,158
432,663
1,569,903
1,525,849
2014
2015
2016
2015
And
Prior
$’000
$’000
$’000
2016
and
prior
$’000
2017
$’000
2017
and
prior
$’000
2018
$’000
2018
and
prior
$’000
2019
$’000
2019
and
prior
$’000
2020
$’000
2020
and
prior
$’000
2021
$’000
2021
and
prior
$’000
Page 30
303,654
350,290
156,241
14.43%
1,139,749
1,903,341
1,239,328
-38.33%
346,094
515,330
241,648
1,485,852
2,418,670
1,480,976
97,621
403,168
195,802
-5.64%
582,261
1,502,479
815,504
-30.50%
295,468
456,157
218,220
-28.12%
877,729
1,958,636
1,033,724
0.76%
379,721
550,051
200,066
1,257,450
2,508,687
1,233,790
107,645
399,848
214,595
376,174
1,247,817
388,041
132,979
430,798
322,845
509,153
1,678,615
710,885
411,945
424,106
384,889
921,097
2,102,720
1,095,774
407,102
658,944
426,773
1,328,199
2,761,664
1,522,547
-18.65%
76,584
301,702
73,834
-20.62%
267,793
933,857
-56.16%
65,710
414,858
3.16%
333,503
1,348,714
-62.77%
84,396
364,568
149,877
140,974
290,851
200,408
-10.08%
417,899
1,713,283
491,259
419,091
403,829
251,701
836,990
2,117,111
742,960
704,090
702,263
361653
1,541,080
2,819,374
1,104,613
2019
Paid during year
-1.50%
11.43%
-38.71%
13.84%
-41.49%
5.32%
1.02%
194,470
499,086
249,011
748,097
149,021
897,118
158,262
13.70%
1,055,380
495868
1,551,248
2,193,341
102,272
349,416
220,240
569,656
211,293
780,949
258,251
1,039,200
367971
1,407,171
35,327
51,272
84,726
135,999
138,151
274,150
172,455
446,604
217,437
664,041
642,092
724,954
352,877
2,132,124
1,016,918
3.09%
-5.49%
-38.46%
18.60%
-32.62%
12.06%
7.15%
21.15%
-1.63%
2020
Paid during year
69,505
45,593
(1,057)
199,438
199,014
(22,771)
127,829
327,267
142,321
341,335
25,142
2,371
120,131
179,586
70,651
447,397
520,920
73,022
146,510
244,074
91,988
593,908
764,994
165,010
146478
498,845
148,783
7.68%
-
20.19%
740,385 621,611
1,113,839 498,791
313,793 159,783
1,361,996
1,612,630
473,577
677,161
734,770
337,154
2,039,157
2,347,401
810,773
-5.58%
9,622
36,832
44,739
4.68%
37.18%
-19.49%
35.41%
-12.43%
-2.38%
-20.26%
7.15%
-5.22%
18.77%
9.50%
-
-
76,048
62,350
91,800
33,826
48,318
41,178
109,874
162,386
132,978
69,548
167,737
51,722
179,422
330,123
100,762
142,130
184,700
72,827
280,184
472,253
257,527
74,660
265,274
120,474
84,965
354,844
737,527 266,214
57,080
378,001
539,809
1,003,741
535,081
577,580
461,939
81,527
1,112,715
1,465,681
616,608
682,569
671,032
392,469
1,795,284
2,136,712
1,009,077
24.81%
(32.65%)
1.41%
(24.31%)
(23.58%)
(25.43%)
(9.03%)
(10.21%)
(0.31%)
(0.86%)
(7.64%)
(0.36%)
4.58%
1.17%
-
-
2015
2016
2017
2018
2021
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
93 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 94
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
(a)
Insurance risk (continued)
Page 31
Development Claim Liabilities
In addition to sensitivity analysis, the development of insurance liabilities provides a measure of the Group’s ability to estimate the ultimate value of claims. The table below illustrates how the Group’s estimate of the ultimate
claims liability for accident years 2013 - 2021 has changed at successive year-ends, up to 2021. Updated unpaid claims and adjustment expenses (UCAE) and IBNR estimates in each successive year, as well as amounts paid to
date are used to derive the revised amounts for the ultimate claims liability for each accident year, used in the development calculations.
2015
$’000
2015
and
prior
$’000
2016
$’000
2016
and
prior
$’000
2017
$’000
2017
and
prior
$’000
2018
2019
2020
2021
$’000
$’000
$’000
$’000
2018
and
prior
$’000
2019
and
prior
$’000
2020
and
prior
$’000
2021
And
Prior
$’000
2014
$’000
222,509
322,488
76,216
2014
and
prior
$’000
503,277
827,396
145,014
185,354
207,194
31,594
344,291
564,367
72,982
269,589
334,705
84,310
613,880
899,072
157,292
-
369,737
582,738
57,679
(12.36%)
240,436
478,099
37,731
-
316,867
395,079
90,131
-
354,039
231,093
34,818
-
686,604
977,817
147,810
-
594,475
709,192
72,549
-
211,295
190,777
29,963
(9.96%)
102,601
132,225
17,247
(10.59%)
33,231
77,148
6,642
(6.59%)
138,163
289,229
30,814
(27.77%)
64,897
151,792
16,902
(22.26%)
203,060
441,021
47,716
(6.38%)
65,100
148,774
15,338
(4.37%)
158,442
391,961
27,716
(9.00%)
60,515
119,584
4,937
(9.23%)
31,282
77,816
6,979
(4.22%)
137,835
345,874
20,484
(3.55%)
104,932
212,081
24,172
376,268
491,870
128,131
-
357,070
217,186
39,187
970,743
1,201,062
200,680
-
560,130
658,207
86,903
(6.47%)
42,867
(0.96%)
74,820
32,278
607
111,834
4,739
(2.84%)
22,270
52,473
871
(1.14%)
97,090
(21.11%)
30,938
(14.27%)
128,028
1.06%
70,661
6.88%
198,689
164,307
5,610
89,194
(863)
253,501
4,747
122,988
7,542
376,489
12,289
294,613
24,022
671,102
36,311
693,840
168,069
1,364,942
204,380
657,745
610,706
112,632
1,217,875
1,268,913
199,535
-
-
391,239
589,928
593,953
1,183,881
4.22%
7,632
27,545
2,937
-3.64%
40,856
88,478
6,010
0.26%
11,446
44,459
2,341
-3.88%
52,302
132,937
8,351
10.92%
23,741
77,776
2,481
5.17%
76,043
210,713
10,832
-9.96%
29,570
97,345
2,581
-18.13%
105,613
308,058
13,413
-1.86%
89,000
217,201
11,894
-11.65%
194,613
577,520
772,133
619,746
1,391,879
525,259
391,730
916,989
631,504
1,548,493
25,307
35,763
61,070
191,432
252,502
6.15%
4,348
(1.72%)
17,431
2.06%
6,931
(1.64%)
24,362
14.15%
24,531
8.66%
48,893
(10.12%)
25,329
(15.40%)
74,222
(1.94%)
55,988
(9.08%)
16.60%
11.53%
-
-
130,210
132,087
262,297
508,866
771,163
618,721
1,389,884
19,997
1,855
62,350
2,821
36,425
2,468
98,775
5,289
63,689
2,371
162,464
7,660
65,004
6,780
227,468
14,440
144,380
5,903
371,848
20,343
222,793
18,887
594,641
39,230
341,734
34,819
936,375
74,049
599123
184,364
1,535,498
258,413
4.44%
(2.94%)
1.83%
(2.86%)
16.28%
8.44%
(10.58%)
(15.78%)
(5.09%)
(11.00%)
10.37%
6.31%
7.59%
(1.08%)
-
-
2014
2015
2016
2017
2018
2019
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
2020
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
2021
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
95 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 96
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
(a)
Insurance risk (continued)
Development Claim Liabilities
In addition to sensitivity analysis, the development of insurance liabilities provides a measure of the Group’s ability to estimate the ultimate value of claims. The table below illustrates how the Group’s estimate of the ultimate
claims liability for accident years 2013 - 2021 has changed at successive year-ends, up to 2021. Updated unpaid claims and adjustment expenses (UCAE) and IBNR estimates in each successive year, as well as amounts paid to
date are used to derive the revised amounts for the ultimate claims liability for each accident year, used in the development calculations.
2014
2015
2016
2017
2018
$’000
$’000
$’000
$’000
2015
and
prior
$’000
2016
and
prior
$’000
2017
and
prior
$’000
2018
and
prior
$’000
2019
$’000
2019
and
prior
$’000
2020
$’000
2020
and
prior
$’000
2021
$’000
2021
And
Prior
$’000
2014
and
prior
$’000
503,277
827,396
145,014
$’000
222,509
322,488
76,216
Page 31
185,354
207,194
31,594
344,291
564,367
72,982
269,589
334,705
84,310
613,880
899,072
157,292
(6.38%)
(4.37%)
-
-
65,100
148,774
15,338
158,442
391,961
27,716
211,295
190,777
29,963
369,737
582,738
57,679
316,867
395,079
90,131
686,604
977,817
147,810
-
-
-
-
(9.00%)
60,515
119,584
4,937
(4.22%)
137,835
345,874
20,484
(9.96%)
(12.36%)
102,601
132,225
17,247
240,436
478,099
37,731
354,039
231,093
34,818
594,475
709,192
72,549
(9.23%)
(3.55%)
(10.59%)
(6.59%)
(27.77%)
(22.26%)
31,282
77,816
6,979
104,932
212,081
24,172
33,231
77,148
6,642
138,163
289,229
30,814
64,897
151,792
16,902
203,060
441,021
47,716
970,743
1,201,062
200,680
-
376,268
491,870
128,131
-
357,070
217,186
39,187
560,130
658,207
86,903
657,745
610,706
112,632
1,217,875
1,268,913
199,535
(6.47%)
(0.96%)
(2.84%)
(1.14%)
(21.11%)
(14.27%)
1.06%
6.88%
42,867
74,820
22,270
97,090
30,938
128,028
70,661
198,689
-
391,239
32,278
111,834
52,473
164,307
89,194
253,501
122,988
607
4,739
871
5,610
(863)
4,747
7,542
376,489
12,289
294,613
24,022
4.22%
-3.64%
0.26%
-3.88%
10.92%
5.17%
7,632
27,545
2,937
40,856
88,478
6,010
11,446
52,302
23,741
76,043
44,459
132,937
77,776
210,713
2,341
8,351
2,481
10,832
2,581
-9.96%
29,570
97,345
-18.13%
105,613
308,058
13,413
-1.86%
89,000
217,201
11,894
-
589,928
671,102
36,311
-11.65%
194,613
525,259
25,307
593,953
1,183,881
693,840
168,069
1,364,942
204,380
577,520
391,730
35,763
772,133
916,989
61,070
619,746
631,504
191,432
1,391,879
1,548,493
252,502
2021
Paid during year
4,348
17,431
6,931
24,362
24,531
48,893
25,329
6.15%
(1.72%)
2.06%
(1.64%)
14.15%
8.66%
(10.12%)
(15.40%)
74,222
(1.94%)
55,988
(9.08%)
130,210
16.60%
132,087
11.53%
262,297
-
508,866
-
771,163
618,721
1,389,884
19,997
1,855
62,350
2,821
36,425
2,468
98,775
5,289
63,689
2,371
162,464
7,660
65,004
6,780
227,468
14,440
144,380
5,903
371,848
20,343
222,793
18,887
594,641
39,230
341,734
34,819
936,375
74,049
599123
184,364
1,535,498
258,413
4.44%
(2.94%)
1.83%
(2.86%)
16.28%
8.44%
(10.58%)
(15.78%)
(5.09%)
(11.00%)
10.37%
6.31%
7.59%
(1.08%)
-
-
2014
2015
2016
2017
2018
2019
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
Paid during year
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
UCAE, end of year
IBNR, end of year
Ratio: excess
(deficiency)
2020
Paid during year
95 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 96
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 32
4.
Insurance and Financial Risk Management (Continued)
(a) Insurance risk (continued)
The concentration of insurance risk before and after reinsurance in relation to the type of insurance risk accepted
is summarized below, with reference to the carrying amount of the insurance liabilities (gross and net of
reinsurance) arising from insurance contract.
The Group
31 December 2021
The Group
31 December 2020
The Company
31 December 2021
31 December 2020
Gross
Net
Gross
Net
Gross
Net
Gross
Net
Motor
Property
Other
types of
risk
Total
$Millions
$Millions
$Millions
$Millions
57,448
246,145
116,499
49,094
18,905
40,291
420,092
108,290
Motor
Property
Other
types of
risk
Total
$Millions
$Millions
$Millions
$Millions
60,724
52,222
193,910
710,082
14,440
55,454
964,716
121,589
Motor
Property
$Millions
$Millions
52,796
213,975
44,509
15,896
Other
types of
risk
$Millions
99,696
25,612
Total
$Millions
366,467
86,017
Motor
Property
Other
types of
risk
Total
$Millions
$Millions
$Millions
$Millions
60,188
52,045
152,901
116,705
329,794
14,098
45,938
74,681
97 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 98
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
Page 33
(b) Reinsurance risk
To limit its exposure of potential loss on an insurance policy, the insurer may cede certain levels of risk to a
reinsurer. The Group selects reinsurers which have established capability to meet their contractual obligations
and which generally have high credit ratings. The credit ratings of reinsurers are monitored.
Retention limits represent the level of risk retained by the cedant insurer. Coverage in excess of these limits is
ceded to reinsurers up to the treaty limit or as agreed. The retention programs used by the Group are
summarised below:
(a) Facultative reinsurance treaties are accepted on a per risk basis.
(b) The group has treaty arrangements as follows:
(i) Property and allied perils 90%:10% Quota Share of premiums i.e. 90% ceded premiums and 10%
retention.
(ii) Motor 60%:40% Quota Share of premiums i.e 60% ceded premiums and 40% retained
(iii) Excess of loss treaty for motor and third-party liability, which covers losses in excess of J$7,500,000
for any one loss or event.
(iv) Excess of loss treaty for motor and third-party liability, which covers losses in excess of TT$800,000
for any one loss or event.
(v) First surplus and a quota share treaty for engineering business with retention of US$75,000.
(vi) First surplus treaty for miscellaneous accident, losses covered in excess of J$2,000,000.
(vii) Catastrophe excess of loss treaty which covers losses in excess of J$125,000,000 for any one
catastrophic event as defined.
(c) The Group reinsures with several reinsurers. Of significance are Munich Reinsurance, R & V
Reinsurance, Scor Reinsurance and Swiss Reinsurance Company. All other reinsurers carry lines under
10%. The Group’s business model supports the placement of specialty risk directly in the overseas
market on a per risk basis. In keeping with the Group’s risk policy, placement of these risks are with
several reinsurers. A.M Best (Best) and Standard & Poor’s (S & P) ratings for the major reinsurers are
as follows:
Munich Reinsurance Company
R & V Reinsurance
Scor Reinsurance Company
Swiss Reinsurance Company
A.M Best
2021
2020
A+
A
A+
A+
A+
A
A+
A+
S & P
2021
AA-
AA-
AA-
AA-
(d) The amount of reinsurance recoveries recognised during the period is as follows:
Group
Company
Property
Motor
Marine
Liability
Engineering
Miscellaneous Accidents
2021
$’000
936,986
349,629
2,348
956
10,849
9,919
1,310,687
2020
$’000
41,186
366,243
1,442
17,623
1,958
10,027
438,479
2021
$’000
936,986
276,567
2,348
956
10,849
9,919
1,237,625
2020
AA-
AA-
AA-
AA-
2020
$’000
43,512
357,388
1,442
17,623
1,958
10,027
431,950
97 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4. Insurance and Financial Risk Management (Continued)
Page 34
(c) Financial risk
The Group is exposed to financial risk through its financial assets, reinsurance assets and insurance
liabilities. In particular the key financial risk is that the proceeds from its financial assets are not sufficient to
fund the obligations arising from its insurance contracts. The most important components of this financial risk
are interest rate risk, market risk, cash flow risk, currency risk, price risk and credit risk.
These risks arise from open positions in interest rates, currency and equity products, all of which are exposed
to general and specific market movements. The risks that the Group primarily faces due to the nature of its
investments and liabilities are credit risk, interest rate risk and market risk. The Group’s overall risk
management programme focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects of the Group’s financial performance.
(i) Credit risk
The Group takes on exposure to credit risk, which is the risk that its reinsurers, brokers, customers,
clients or counterparties will cause a financial loss for the Group by failing to discharge their contractual
obligations. Credit risk is an important risk for the Group’s business; management therefore carefully
manages its exposure to credit risk. Credit exposures arise principally from the amounts due from
reinsurers, amounts due from insurance contract holders and insurance brokers and investment
contracts and loans receivable.
The Group structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted
in relation to a single counterparty or groups of related counterparties.
Credit review process
The Group’s senior management meets on a monthly basis to discuss the ability of customers and other
counterparties to meet repayment obligations.
(i) Reinsurance
Reinsurance is used to manage insurance risk. This does not, however, discharge the Group’s
liability as primary insurer. If a reinsurer fails to pay a claim for any reason, the Group remains liable
for the payment to the policyholder. The creditworthiness of reinsurers is considered on an annual
basis by reviewing their financial strength prior to finalisation of any contract. The Group’s senior
management assesses the creditworthiness of all reinsurers and intermediaries by reviewing credit
grades provided by rating agencies and other publicly available financial information.
(ii) Premium receivables
The Group’s senior management examines the payment history for significant contract holders with
whom they conduct regular business. Management information reported to the Group includes
details of provisions for impairment on premium receivables and subsequent write-offs. Exposures
to individual policyholders and groups of policyholders are collected within the ongoing monitoring
of the controls associated with regulatory solvency. Where significant exposure to individual
policyholders or homogenous groups of policyholders exists, a financial analysis is carried out by
senior management and where necessary cancellation of policies is effected for amounts deemed
uncollectible.
(iii) Loans and leases receivable
The Group’s management of exposure to loans and leases receivable is influenced mainly by the
individual characteristics of each customer. Management has established a credit policy under which
each customer is analysed individually for creditworthiness prior to the Group offering credit facilities.
Customers are required to provide a letter of guarantee and proof of collateral to be held as security.
99 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
Page 35
(c) Financial risk (continued)
(i) Credit risk (continued)
Credit review process (continued)
(iv) Investments
The Group limits its exposure to credit risk by investing mainly in liquid securities, with counterparties
that have high credit quality and Government securities. Accordingly, management does not expect
any counterparty to fail to meet its obligations.
Impairment of Financial Assets
The following financial assets that are subject to expected credit loss model:
Premium receivables
Debt investments carried at amortised cost.
Lease receivables
While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, all bank
balances are assessed to have low credit risk at each reporting date as they are held with reputable
banking institutions and the identified impairment loss was immaterial.
As loans receivables is also fully collateralised and the debtors are not experiencing any financial
difficulty, the Group does not expect any financial losses on these amounts.
Premium receivables
The Group applies the IFRS 9 simplified approach to measuring expected credit losses, which uses a
lifetime expected loss allowance for these assets.
To measure the expected credit losses, premium receivables have been grouped based on shared credit
risk characteristics and the days past due.
The expected loss rates are based on the payment profiles of premium over a period of 24 months and
the corresponding historical credit losses experienced within this period. The historical loss rates are
adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability
of the customers to settle the receivables. The Group has identified the GDP and the unemployment rate
of Jamaica to be most relevant factors, and accordingly adjusts the historical loss rates based on
expected changes in these factors
For unemployment rate, we anticipate a decline in unemployment resulting in better payment patterns
from our broker partners.
In determining the classification of our brokers, we considered the payment pattern for the past 24
months.
Maximum exposure to credit risk
The following table contains an analysis of the credit risk exposure of premium receivables for which an
ECL is recognized. The gross carrying amount of financial assets below also represents the Group’s
maximum exposure to credit risk on these assets.
Gross carrying amount
Loss allowance
Carrying amount
The Group
The Company
2021
$’000
1,431,458
(16,124)
1,415,334
2020
$’000
1,267,130
(14,293)
1,252,837
2021
$’000
1,270,242
(16,124)
1,254,118
2020
$’000
1,217,097
(14,293)
1,202,804
2021 | GENERAL ACCIDENT ANNUAL REPORT 100
99 2021 | GENERAL ACCIDENT ANNUAL REPORT
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 36
4.
Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
Loss allowance
The movement on the loss allowance for insurance receivables was as follows:
Opening loss allowance as at 1 January
Increase in allowance recognised in profit or loss during the period
Closing loss allowance as at 31 December 2021
The Group and Company
2021
$’000
14,293
1,831
16,124
2020
$’000
6,960
7,333
14,293
The loss allowance as at 31 December 2021 and 31 December 2020 was determined as follows for premium
receivables:
The Group
Less than 45 days
Within 45 days to 3
months
Over 3 months
2021
$’000
599,692
309,812
521,954
Gross amount
1,431,458
Loss
Allowance
Expected
loss rate
2020
$’000
Loss
Allowance
100
436
15,588
16,124
0.02%
625,955
0.15%
200,033
3.20%
441,142
1,267,130
87
100
14,106
14,293
Expected
loss rate
0.013%
0.050%
3.197%
The Company
Less than 45 days
Within 45 days to 3
months
Over 3 months
2021
$’000
494,758
287,912
487,572
Gross amount
1,270,242
Loss
Allowance
Expected
loss rate
2020
$’000
Loss
Allowance
100
436
15,588
16,124
0.02%
575,922
0.15%
200,033
3.20%
441,142
1,217,097
86
100
14,107
14,293
Expected
loss rate
0.015%
0.050%
3.197%
Loss allowance for receivables have not been accounted for within the subsidiary as the entity operates
primarily on a cash basis.
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
Page 37
(c) Financial risk (continued)
(i) Credit risk (continued)
Premium receivables
The following table summarises the Group’s credit exposure for premium receivables at their carrying
amounts, as categorised by brokers and direct business:
Brokers and insurance companies
Direct
1,073,638
341,696
1,415,334
The Group
2021
$’000
2020
$’000
922,313
330,524
The Company
2021
$’000
912,422
341,696
2020
$’000
893,414
309,390
1,252,837
1,254,118
1,202,804
All premium receivables are receivable from policyholders, brokers and agents in Jamaica.
Debt securities
The following table summarises the Group’s credit exposure for debt securities at their carrying amounts,
as categorised by issuer:
Group
Company
Government of Jamaica
2021
$’000
31,717
2020
$’000
31,717
Government of Trinidad and Tobago
308,669
1,105,016
2021
$’000
31,717
-
2020
$’000
31,717
-
Other government
Certificate of deposits
Corporate
302,681
122,401
306,786
122,401
1,746,653
2,370,477
1,424,017
2,112,509
230,061
2,619,781
98,538
106,926
98,538
3,728,148
1,869,446
2,365,165
Significant increase in credit risk
Qualitative assessment – Credit ratings are associated with ranges of default probabilities based on
historical information. Rating outlooks, which are inherently forward-looking, are used to determine the
probability of default to be applied to a specific security within its respective range. Issuer-specific
default risk estimates incorporate forward-looking information directly. In calculating the probability of
default, the Group uses credit ratings along with rating outlooks from recognised rating agencies, as
well as issuer-specific default risk estimates where available and appropriate. The ratings and risk
estimates are mapped to an internal credit risk grading model in order to standardise across different
rating systems and to clearly demarcate significant changes in credit risk over time.
A qualitative assessment is done at initial recognition and subsequently at each statement of financial
position date and where it is determined that there is a significant increase in the probability of default
the security is categorise as stage 2 for the purpose of calculating the ECL. If the financial instrument
is credit impaired, the financial instrument is then moved to ‘Stage 3. Purchased or originated credit-
impaired financial assets are those financial assets that are credit-impaired on initial recognition. Their
ECL is always measured on a lifetime basis (Stage 3).
Quantitative assessment - Investment securities considered to have experienced a significant increase
in credit risk if it is more than 30 days past due on its contractual payments.
101 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 38
4.
Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(i) Credit risk (continued)
Expected credit loss measurement
The Group assesses on a forward-looking basis the ECL associated with debt investments. The ECL
recognised by the Group reflects an unbiased and probability weighted amounts that is determined by
evaluating a range of possible outcomes, the time value of money and reasonable and supportable
information that is available without undue cost at the reporting date. The ECL is the product of the
Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD).
The PD presents the likelihood of a borrower defaulting on its financial obligation, either over the next 12
months or over the remaining lifetime of the obligation.
EAD is based on the amounts the Group expects to be owed at the time of default, over the next 12
months or over the remaining lifetime.
LGD represents the Group’s expectation of the extent of loss on a defaulted exposure. LGD is calculated
on a 12 month or a lifetime basis, where 12 month LGD is the percentage of loss expected to be made
if the default occurs in the next 12 months and lifetime LGD is a percentage of loss expected to be made
if the default occurs over the remaining expected lifetime of the loan.
All of the Group’s debt investments at amortised cost is considered to have low credit risk, and the loss
allowance recognised during the period was therefore limited to 12 months expected losses (Stage 1).
Management considers ‘low credit risk’ for bonds to be those with an investment grade or high credit rating
with at least one major rating agency. Other instruments are considered to be low credit risk when they
have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations
in the near term. There were no transfers between stages from the date of adoption to the reporting date.
The loss allowance for debt investments at amortised cost as at 31 December 2021 reconciles to the
opening
at
31 December 2021 as follows:
allowance
January
2021
loss
on
as
1
Opening loss allowance as at 1 January
Decrease in loss allowance recognised in profit or loss
in the statement of comprehensive income during the year
Closing loss allowance as at 31 December
The Group
The Company
2021
$’000
12,326
(1,803)
10,523
2020
$’000
12,326
2021
$’000
7,679
-
(1,803)
12,326
5,876
2020
$’000
7,679
-
7,679
103 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
Page 39
(c) Financial risk (continued)
(i) Credit risk (continued)
Total loss allowance on financial assets at 31 December 2021 total $26,647,000 (investment securities,
$10,523,000 and trade receivable, $16,124,000).
Sensitivity analysis
Set out below are the changes in ECL as at 31 December 2021 that would result from a reasonably possible
change in the PDs used by the Group:
Impact on ECL
31 December 2021
The Group
The Company
Actual
PD
ranges
applied
%
Change
in PD
Higher
threshold
Lower
threshold
Higher
threshold
Lower
threshold
Debt instruments at amortised
cost
Trade receivables and other
receivables
Total
1% - 4%
+/- 20%
1,843
(1,843)
0.1% -3%
+/- 20%
3,224
5,067
(3,224)
(5,067)
$’000
1,843
3,224
5,067
$’000
(1,843)
(3,224)
(5,067)
Impact on ECL
31 December 2020
The Group
The Company
Financial Assets
Actual
PD
ranges
applied
%
Change
in PD
Higher
threshold
Lower
threshold
Higher
threshold
Lower
threshold
$’000
$’000
Debt instruments at amortised cost
Trade receivables and other
1% - 4%
+/- 20%
3,302
(3,302)
2,742
(2,742)
receivables
0.1% -3%
+/- 20%
Total
2,456
5,758
(2,456)
(5,758)
2,456
5,198
(2,456)
(5,198)
103 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 40
4.
Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(ii) Liquidity risk
Liquidity risk is the risk that the Group is unable to meet its payment obligations associated with its
financial liabilities when they fall due and to replace funds when they are withdrawn. The consequence
may be the failure to meet obligations to fulfil claims and other liabilities incurred.
Liquidity risk management process
The Group’s liquidity management process, as carried out within the Group and monitored by the Board
of Directors, includes:
(i) Monitoring future cash flows and liquidity on a daily basis. This incorporates an assessment of
expected cash flows and the availability of high grade collateral which could be used to secure
funding if required;
(ii) Maintaining a portfolio of highly marketable assets that can easily be liquidated as protection against
any unforeseen interruptions to cash flow;
(iii) Optimising cash returns on investments;
(iv) Monitoring statement of financial position liquidity ratios against internal and regulatory requirements;
and
(v) Managing the concentration and profile of debt maturities.
Monitoring and reporting take the form of cash flow measurement and projections for the next day, week
and month, as these are key periods for liquidity management. The starting point for those projections is
an analysis of the contractual maturity of the financial liabilities and the expected collection date of the
financial assets.
105 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4. Insurance and Financial Risk Management (Continued)
Page 41
(c) Financial risk (continued)`
(ii) Liquidity risk (continued)
The matching and controlled mismatching of the maturities and interest rates of assets and liabilities is
fundamental to the management of the Group. It is unusual for companies ever to be completely matched
since business transacted is often of uncertain term and of different types. An unmatched position
potentially enhances profitability, but can also increase the risk of loss.
The maturities of assets and liabilities and the ability to replace, at an acceptable cost, interest-bearing
liabilities as they mature, are important factors in assessing the liquidity of the Group and its exposure to
changes in interest rates and exchange rates.
Financial assets and financial liabilities cash flows
The tables below present the undiscounted cash flows of the Group’s financial assets and liabilities based
on contractual repayment obligations:
Liquidity risk management process (continued)
Within 1
Month
$’000
Within 3
Months
$’000
3 to 12
Months
$’000
Group
1 to 5
Years
$’000
Over
5 Years
$’000
No Specific
Maturity
$’000
Total
$’000
At 31 December 2021:
Cash and short-term investments
Due from policyholders, brokers and
agents
Due from reinsurers and coinsurers
Deferred policy acquisition cost
Other receivables
Loan receivable
Lease receivable
Due from related parties
Real estate investment
Investment securities
Total financial assets
Due to reinsurers and coinsurers
Other liabilities
Lease liabilities
Claims liabilities
Total financial liabilities
Net Liquidity Gap
Cumulative gap
1,312,639 131,590
469,465
857,080
945,869
-
1,095,183 1,328,645
-
-
-
59,620
7,242
2,770 5,540 24,930
20,191
4,487
2,243
-
-
-
-
-
398,744 514,790 1,005,032
2,378,798
2,757,079
3,050,183
-
-
-
-
-
-
-
265,924
74,034
-
189,912
786,059
1,315,929
-
-
-
-
1,444,229
-
-
1,415,334
3,280,908
-
562,600
562,600
-
-
-
-
-
691,562
-
-
5,383
-
64,132 447,709
1,707,254
64,132
758,424
299,164
100,955
5,383
189,912
3,216,466
11,273,375
-
143,825
56,763
461,076
14,318
13,604
604,433
359,193
7,545
1,065,509
549,644
104,300
1,757,365 952,026 1,238,969 3,863,248 - - 7,811,608
9,531,061
3,896,700
1,742,314
-2,580,771
-
(3,828)
25,244
1,682,010
1,742,314
2,728,536
321,647
321,647
1,439,557
939,241
2,576,943
1,441,024
1,316,055
1,637,702
-
64,132
60,304
-
7,064
26,388
25,244
-
-
-
-
-
105 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 42
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)`
(ii) Liqudity risk (continued)
Liquidity risk management process (continued)
At 31 December 2020:
Cash and short-term investments
Due from policyholders, brokers and
agents
Due from reinsurers and coinsurers
Deferred policy acquisition cost
Other receivables
Loan receivable
Lease receivable
Due from related parties
Real estate investment
Investment securities
Total financial assets
Within 1
Month
$’000
Within 3
Months
$’000
3 to 12
Months
$’000
Group
1 to 5
Years
$’000
Over
5 Years
$’000
No Specific
Maturity
$’000
Total
$’000
620,664
135,884
-
341,319
562,000
911,518
689,634
-
1,050,615
-
-
-
-
-
-
-
-
-
-
-
756,548
1,252,837
2,302,249
496,512
496,512
7,636
2,920
2,243
-
-
181,508
1,718,290
40,453
5,839
4,487
-
-
437,841
2,225,656
-
26,277
20,191
-
-
1,879,999
2,977,082
-
140,146
100,955
-
212,329
1,220,251
1,673,681
-
175,183
-
-
-
79,730
254,913
112,961
-
22,710
-
436,567
1,068,750
Due to reinsurers and coinsurers
Other liabilities
Lease liabilities
Claims liabilities
Total financial liabilities
Net Liquidity Gap
Cumulative gap
535,398
190,195
7,220
1,499,603
2,232,416
(514,126)
(514,126)
419,220
11,958
14,115
1,552,907
1,998,200
227,456
(286,670)
-
124,425
61,908
1,273,540
1,459,873
1,517,209
1,230,539
-
7,064
93,601
2,298,679
2,399,344
-725,663
504,876
-
-
-
-
254,913
759,789
-
77,142
-
-
77,142
991,608
1,751,397
161,050
350,365
127,876
22,710
212,329
4,235,896
9,918,372
954,618
410,784
176,844
6,624,729
8,166,975
1,751,397
-
107 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 43
4.
Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(ii) Liquidity risk (continued)
Liquidity risk management process (continued)
Company
Within 1
Month
Within 3
Months
3 to 12
Months
1 to 5
Years
Over
5 Years
No
Specific
Maturity
$’000
$’000
$’000
$’000
$’000
$’000
Total
$’000
At 31 December 2021:
Cash and short-term investments
Due from policyholders, brokers
and agents
Due from reinsurers and
coinsurers
675,772
8,877
308,249
945,869
-
-
-
-
480,494
979,531
1,025,255
643,815
Deferred policy acquisition cost
-
-
-
-
-
-
-
-
7,216
59,620
-
-
2,243
4,486
20,191
74,033
-
-
-
189,912
Other receivables
Due from related parties
Lease receivables
Real estate investment
Investment securities
Total financial assets
-
-
-
-
-
-
-
-
-
-
-
684,649
1,254,118
3,129,095
521,534
521,534
656,240
723,076
86,532
-
-
86,532
100,953
189,912
309,545
355,956
941,882
340,610
20,638
447,709
2,416,340
1,783,519 2,354,339
1,987,328
1,248,370
20,638 1,712,015
9,106,209
Due to reinsurers and coinsurers
522,259
461,076
-
-
Other liabilities
Lease liabilities
244,757
5,681
14,318
10,982
143,825
7,064
49,612
24,294
Insurance reserves
1,464,057
878,434
1,171,245
2,342,483
-
-
-
-
-
-
-
-
983,335
409,964
90,569
5,856,219
Total financial liabilities
Net Liquidity Gap
Cumulative gap
2,236,754 1,364,810
989,529
(453,235)
1,364,682
622,646
2,373,841
-1,125,471
-
-
20,638 1,712,015
7,340,087
1,766,122
(453,235)
536,294
1,158,940
33,469
54,107 1,766,122
-
107 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 108
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(ii) Liquidity risk (continued)
Liquidity risk management process (continued)
Company
Within 1
Month
Within 3
Months
3 to 12
Months
1 to 5
Years
Over
5 Years
No
Specific
Maturity
$’000
$’000
$’000
$’000
$’000
$’000
Page 44
Total
$’000
452,964
At 31 December 2020:
Cash and short-term investments
Due from policyholders, brokers
and agents
Due from reinsurers and
coinsurers
317,080
135,884
575,922
626,882
-
-
562,000
786,800
899,200
Deferred policy acquisition cost
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,202,804
2,248,000
487,003
487,003
75,356
102,539
52,253
-
-
52,253
127,876
212,329
-
-
-
2,246
24,937
-
-
2,243
4,487
20,191
100,955
-
-
-
212,329
116,448
435,841
1,635,575
197,895
20,638
432,913
2,839,310
1,575,939 2,014,831
2,554,966
511,179
20,638 1,047,525
7,725,078
Other receivables
Due from related parties
Lease receivables
Real estate investment
Investment securities
Total financial assets
Due to reinsurers and coinsurers
452,779
480,762
-
-
Other liabilities
Lease liabilities
190,195
11,958
124,425
7,065
4,925
9,764
44,175
79,111
Insurance reserves
1,253,628 1,504,354
1,253,628 1,002,903
-
-
-
-
-
-
-
-
933,541
333,643
137,975
5,014,513
Total financial liabilities
Net Liquidity Gap
Cumulative gap
1,901,527
(325,588)
2,006,838
7,993
1,422,228 1,089,079
(577,900)
1,132,738
-
-
20,638 1,047,525
6,419,672
1,305,406
(325,588)
(317,595)
815,143
237,243
257,881 1,305,406
Assets available to meet all of the liabilities and to cover financial liabilities include cash and bank balances
and investment securities. The Group is also able to meet unexpected net cash outflows by selling
securities and accessing additional funding sources from its parent company and other financial
institutions.
109 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 110
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
Page 45
(c) Financial risk (continued)
(iii) Market risk
The Group takes on exposure to market risks, which is the risk that the fair value or future cash flows
of a financial instrument will fluctuate because of changes in market prices. Market risks mainly arise
from changes in foreign currency exchange rates, interest rates and prices of quoted equities. Market
risk is monitored by the finance department which carries out research and monitors the price movement
of financial assets on the local and international markets.
There has been no change to the Group’s exposure to market risks or the manner in which it manages
and measures the risk.
Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates.
The Group also has transactional currency exposure. Such exposure arises from having financial
assets in currencies other than those in which financial liabilities are expected to settle. The Group
ensures that its net exposure is kept to an acceptable level by buying or selling foreign assets to address
short term imbalances.
Concentrations of currency risk
The tables below summarise the Group’s exposure to foreign currency exchange rate risk at
31 December:
Jamaican$
J$’000
The Group
US$
J$’000
TTD
J$’000
BBD
J$’000
Total
J$’000
At 31 December 2021:
Financial Assets
Cash and short term investments
Due from policyholders, brokers
and agents
Due from reinsurers and coinsurers
Deferred policy acquisition cost
Other receivables
Loan receivables
Lease receivables
Due from related parties
Real estate investment
Investment securities
Total financial assets
Financial Liabilities
Due to reinsurers and coinsurers
Other liabilities
Lease liabilities
Insurance reserves
Total financial liabilities
Net financial position
109 2021 | GENERAL ACCIDENT ANNUAL REPORT
316,517
1,056,249
484,995
46,826
471,666
197,869
171,005
114,390
1,444,183
1,415,334
209,778
-
-
2,913,270
521,534
639,160
83,054
31,726
77,599
244,188
-
-
67,320
4,239
-
1,144
-
-
189,912
1,877,855
465,516
758,296
7,582,961 1,726,684 1,349,068
74,806
9,340
41,665
-
-
3,280,908
562,600
758,424
244,188
67,320
5,383
189,912
- 3,101,667
411,206 11,069,919
760,604
403,883
32,119
222,731
23,713
6,081
116,753
53,167
13,730
4,917,394 1,723,269
938,825
6,114,000 1,877,465 1,220,804
128,264
1,468,961 (150,781)
1,065,509
58,461
549,644
22,927
103,207
4,191
232,120
7,811,608
317,699 9,529,968
1,539,951
93,507
2021 | GENERAL ACCIDENT ANNUAL REPORT 110
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4. Insurance and Financial Risk Management (Continued)
Page 46
(c) Financial risk (continued)
(iii) Market risk (continued)
Currency risk (continued)
The tables below summarise the Group’s exposure to foreign currency exchange rate risk at
31 December:
Jamaican$
J$’000
The Group
US$
J$’000
TTD
J$’000
BBD
GBP
$’000 J$’000
Total
J$’000
At 31 December 2020:
Financial Assets
Cash and short term investments
Due from policyholders, brokers
Due from reinsurers and coinsurers
Deferred policy acquisition cost
Other receivables
Loan receivables
Lease receivables
Due from related parties
Real estate investment
Investment securities
Total financial assets
Financial Liabilities
Due to reinsurers and coinsurers
Other liabilities
Lease liabilities
Insurance reserves
Total financial liabilities
Net financial position
195,278
979,035
2,077,933
496,512
150,257
-
79,157
22,710
212,329
317,106
93,033
223,769
3,388
170,067
33,870
-
-
-
4,915
-
251,464
-
-
-
-
-
-
2,446,169 1,353,671
393,139
6,659,380 1,740,341 1,104,081
151,018
46,644
20,379
-
5,878
-
-
-
-
17,807
241,726
113
756,548
- 1,252,836
- 2,302,249
496,512
161,050
-
251,464
-
79,157
-
22,710
-
212,329
-
- 4,210,786
113 9,745,641
-
758,407
328,156
48,873
71,549
24,374
4,934,789 1,565,818
6,070,225 1,661,741
78,600
589,155
175,134
5,571
77,906
79,748
338,359
765,722
21,077
5,508
11,368
44,374
82,327
159,399
954,618
-
410,784
-
162,521
-
- 6,624,729
- 8,152,652
113 1,592,989
111 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 112
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 47
4.Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Currency risk (continued)
The tables below summarise the Company’s exposure to foreign currency exchange rate risk at
31 December:
Jamaican$
J$’000
US$
BB$
J$’000 J$’000 J$’000
TT$
At 31 December 2021:
Financial Assets
Cash and short-term investments
Due from policyholders, brokers and agents
Due from reinsurers and coinsurers
Deferred policy acquisition cost
Other receivables
Due from related parties
Lease receivables
Real estate investment
Investment securities
Total financial assets
Financial Liabilities
Due to reinsurers and coinsurers
Lease liabilities
Other liabilities
Insurance reserves
Total financial liabilities
Net financial position
368,105
197,869
77,230
-
-
64,584
-
316,517
1,056,249
3,051,865
521,534
723,075
6,082
67,230
189,912
1,881,152
462,219
7,813,615 1,170,007
-
-
-
-
-
12,252
-
-
-
-
-
-
3,614
-
-
12,252
-
3,614
222,731
760,604
53,167
32,119
6,081
403,883
4,917,394
938,825
6,114,000 1,220,804
(50,797)
1,699,616
-
-
-
-
-
12,252
-
-
-
-
-
3,614
Total
J$’000
684,622
1,254,118
3,129,094
521,534
723,075
86,532
67,230
189,912
2,343,371
8,999,489
983,335
85,286
409,964
5,856,219
7,334,804
1,664,685
111 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 112
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
Page 48
(c) Financial risk (continued)
(iii) Market risk (continued)
Currency risk (continued)
The tables below summarise the Company’s exposure to foreign currency exchange rate risk at
31 December:
The Company
Jamaican$
J$’000
US$
BB$
J$’000 J$’000 J$’000
TT$
At 31 December 2020:
Financial Assets
Cash and short-term investments
Due from policyholders, brokers and agents
Due from reinsurers and coinsurers
Deferred policy acquisition cost
Other receivables
Due from related parties
Lease receivables
Real estate investment
Investment securities
Total financial assets
Financial Liabilities
Due to reinsurers and coinsurers
Lease liabilities
Other liabilities
Insurance reserves
Total financial liabilities
Net financial position
194,572
981,117
2,077,933
487,003
150,257
22,710
79,157
212,329
2,533,275
6,738,353
758,407
328,072
48,873
4,934,765
6,070,117
668,236
258,279
221,686
170,067
-
-
-
-
306,035
956,067
175,134
5,571
77,906
79,748
338,359
617,708
-
-
-
-
-
17,037
-
-
-
17,037
-
-
-
-
-
17,037
-
-
-
-
12,506
-
-
12,506
-
-
-
-
-
12,506
GBP
J$’000
Total
J$’000
113
-
-
-
-
-
-
-
-
113
-
-
-
-
-
113
452,964
1,202,803
2,248,000
487,003
150,257
52,253
79,157
212,329
2,839,310
7,724,076
933,541
333,643
126,779
5,014,513
6,408,476
1,315,600
The following tables indicate the currencies to which the Company had significant exposure on its
monetary assets and liabilities and its forecast cash flows. The change in currency rates below represents
management’s assessment of the possible change in foreign exchange rates. The sensitivity analysis
shows the impact of translating outstanding foreign currency denominated monetary items, assuming
changes in currency rates shown in the table below. The sensitivity analysis includes cash and short-
term deposits, investment securities, premium and other receivables and claims liabilities. The
percentage change in the currency rate will impact each financial asset/liability included in the sensitivity
analysis differently. Consequently, individual sensitivity analyses were performed. The effect on pre-tax
profit below is the total of the individual sensitivities done for each of the assets/liabilities. There was no
impact on the other components of equity.
113 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 114
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 49
4.
Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Foreign currency sensitivity
The Group
Increase/
(decrease) in
Pre-tax
Profit
2021
$’000
(2,565)
7,965
-
-
% Change in
Currency Rate
2020
2%
6%
4%
6%
The Company
Increase/
(decrease) in
Pre-tax
Profit
2021
$’000
(2,032)
3,048
% Change in
Currency Rate
2020
2%
6%
Increase/
(decrease) in
Pre-tax
Profit
2020
$’000
(16,367)
24,551
-
-
Increase/
(decrease) in
Pre-tax
Profit
2020
$’000
(10,853)
32,560
% Change in
Currency Rate
2021
2%
6%
4%
6%
% Change in
Currency Rate
2021
4%
6%
USD – J$ Revaluation
USD – J$ Devaluation
TT – J$ Revaluation
TT – J$ Devaluation
USD – J$ Revaluation
USD – J$ Devaluation
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.
Floating rate instruments expose the Group to cash flow interest risk, whereas fixed interest rate
instruments expose the Group to fair value interest risk.
The Group’s interest rate risk policy requires it to manage interest rate risk by maintaining an appropriate
mix of fixed and variable rate instruments. The policy also requires it to manage the maturities of interest
bearing financial assets and interest bearing financial liabilities.
The following tables summarise the Group’s exposure to interest rate risk. It includes the Group’s financial
instruments at carrying amounts, categorised by the earlier of contractual repricing or maturity dates.
113 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 114
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 50
4.
Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Interest rate risk (continued)
Within 1
Month
Within 3
Months
3 to 12
Months
The Group
1 to 5
Years
Over
5 Years
Non-Interest
Bearing
$’000
$’000
$’000
$’000
$’000
$’000
Total
$’000
At 31 December 2021:
Cash and short term investments
1,312,639 131,544
-
Due from policyholders and brokers
Due from reinsurers and coinsurers
-
-
-
-
-
-
Deferred policy acquisition costs
-
-
-
- - 3,280,908
-
-
-
-
-
-
-
-
1,415,334
-
1,444,183
1,415,334
3,280,908
562,600
562,600
691,562
758,424
-
-
5,383
244,188
67,320
5,383
189,912
189,912
-
-
-
-
-
-
7,242
1,772
1,626
-
-
59,620
3,545
2,271
-
-
-
15,951
222,920
10,950
52,473
-
-
-
-
397,576
1,720,855
499,773
696,753
734,287
967,315
994,216 1,009,680
55,007
55,007
447,709
3,101,667
6,593,408 11,069,919
Other receivables
Loan receivables
Lease receivable
Due from related parties
Real estate investment
Investment securities
Total financial assets
Due to reinsurers and coinsurers
Other liabilities
Lease liabilities
Insurance reserves
-
-
-
-
-
-
-
-
6,983
12,808
56,509
26,907
-
-
-
-
Total financial liabilities
6,983
12,808
56,509
26,907
-
-
-
-
-
1,065,509
1,065,509
549,644
549,644
-
103,207
7,811,608
7,811,608
9,426,761
9,529,968
Total interest repricing gap
1,713,872
683,945
937,707
982,773
55,007
(2,833,353)
1,539,951
Cumulative gap
1,713,872
2,397,817 3,335,524 4,318,297 4,373,304
1,539,951
At December 2020
Cash and short-term investments
Due from policyholders and brokers
Due from reinsurers and coinsurers
Deferred policy acquisition costs
Other receivables
Loan receivables
Lease receivables
Due from related parties
Real estate investment
Investment securities
Total financial assets
Lease liabilities
Other liabilities
Insurance reserves
620,664
135,884
-
-
-
7,636
1,453
960
-
-
-
-
-
40,452
2,932
1,956
-
-
The Group
-
-
-
-
-
-
-
-
-
-
-
756,548
- 1,252,837
1,252,837
- 2,302,249
2,302,249
-
-
496,512
112,962
13,620
86,008
147,451
9,432
66,809
-
-
-
-
-
-
-
-
22,710
-
212,329
234,977
757,557
1,197,855 1,232,476
58,262
729,659
4,210,786
865,690
938,781
1,220,907 1,385,293
205,713 5,129,258
9,745,642
6,543
12,761
55,815
87,402
-
-
-
410,784
6,624,729
6,624,729
496,512
161,050
251,464
79,157
22,710
212,329
954,618
162,521
410,784
Due to reinsurers and coinsurers
-
-
-
-
-
954,618
Total financial liabilities
6,543
12,761
55,815
87,402
-
7,990,131
8,152,652
Total interest repricing gap
859,147
926,020
1,165,092 1,297,891
205,713
(2,860,873)
1,592,990
Cumulative gap
859,147
1,785,167
2,950,259 4,248,150 4,453,863 1,592,990
-
115 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 116
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 51
4.
Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Interest rate risk (continued)
At 31 December 2021:
Cash and short-term investments
Due from policyholders and brokers
Due from reinsurers and coinsurers
Deferred policy acquisition costs
Other receivables
Due from related parties
Lease receivables
Real estate investment
Investment securities
Total financial assets
Within 1
Month
Within 3
Months
3 to 12
Months
The Company
1 to 5
Years
Over
5 Years
Non-Interest
Bearing
$’000
$’000
$’000 $’000
$’000
$’000
Total
$’000
675,772
-
-
-
7,216
-
1,626
-
8,850
-
-
-
59,620
-
2,271
-
-
-
-
-
-
10,950
-
-
-
-
-
-
-
-
52,473
-
-
-
-
-
-
-
-
1,254,118
3,129,095
684,622
1,254,118
3,129,095
521,534
521,534
656,240
723,076
86,532
-
86,532
67,320
-
189,912
189,912
308,815
343,574
907,054
323,219
993,429
414,315
918,004
375,692
13,000
13,000
447,709
6,285,140
2,343,371
8,999,580
Due to reinsurers and coinsurers
-
-
-
-
Lease liabilities
Other liabilities
Insurance reserves
5,119
10,186
46,564
23,417
-
-
-
-
-
Total financial liabilities
5,119
10,186
46,564
23,417
-
-
-
-
-
983,335
983,335
-
85,286
409,964
409,964
5,856,219
5,856,219
7,249,518
7,334,804
Total interest repricing gap
988,310
404,129
871,440
352,275
13,000
(964,378)
1,664,776
Cumulative gap
988,310 1,392,439 2,263,879
2,616,154
2,629,154
1,664,776
At 31 December 2020:
Cash and short term investments
317,080
135,884
Due from policyholders and brokers
Due from reinsurers and coinsurers
Deferred policy acquisition costs
-
-
-
-
-
-
-
2,243
4,487
20,191
-
-
-
960 1,956
9,432
66,809
The Company
-
-
-
-
-
-
-
-
-
-
-
452,964
1,202,804 1,202,804
2,248,000 2,248,000
487,003
487,003
123,336
150,257
52,253
-
52,253
79,157
212,329
212,329
234,977
757,557 1,119,976
245,756
13,000
468,044 2,839,310
555,260
899,884 1,149,599
312,565
13,000
4,793,769 7,724,077
Other receivables
Due from related parties
Lease receivables
Real estate investment
Investment securities
Total financial assets
115 2021 | GENERAL ACCIDENT ANNUAL REPORT
Due to reinsurers and coinsurers
-
-
-
-
Lease liabilities
Other liabilities
Insurance reserves
4,199
8,599
39,387
74,593
-
-
-
-
-
-
-
-
Total financial liabilities
4,199
8,599
39,387
74,593
-
-
-
-
-
933,541
933,541
-
126,778
333,643
333,643
5,014,513 5,014,513
6,281,697 6,408,475
Total interest repricing gap
551,061
891,285 1,110,212
237,972
13,000
(1,487,928) 1,315,602
Cumulative gap
551,061 1,442,346 2,552,558
2,790,530 2,803,530
1,315,602
2021 | GENERAL ACCIDENT ANNUAL REPORT 116
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
4.
Insurance and Financial Risk Management (Continued)
Page 52
(c) Financial risk (continued)
(iii) Market risk (continued)
Interest rate risk (continued)
Interest rate sensitivity
The following table indicates the sensitivity to a reasonably possible change in interest rates, with all other
variables held constant, on the Group’s profit or loss and shareholders’ equity.
The sensitivity of the profit or loss is the effect of the assumed changes in interest rates on income based
on the floating rate non-trading financial assets and financial liabilities. The sensitivity of other
components of equity is calculated by revaluing fixed rate financial assets and liabilities for the effects of
the assumed changes in interest rates. The change in the interest rates will impact the financial assets
and liabilities differently. Consequently, individual analyses were performed. The effect on pre-tax profit
and other components of equity below is the total of the individual sensitivities done for each of the assets
and liabilities. It should be noted that the changes in the pre-tax profit and other components of equity
as shown in the analysis are non-linear.
Change in Basis
points:
Increase/(decrease)
in Profit before
Taxation
Increase/(decrease)
in Other
Components of
Equity
The Group
2021
JMD/USD
-50/-100
300/100
2021
$’000
(1,488)
1,938
2021
$’000
-
-
The Company
Change in Basis
points:
Increase/(decrease)
in Profit before
Taxation
Increase/(decrease)
in Other
Components of
Equity
2021
JMD/USD
-50/-100
300/100
2021
$’000
(90)
540
2021
$’000
-
-
Change in
Basis
points:
2020
JMD/USD
-100/-100
100/100
Change in
Basis
points:
2020
JMD/USD
-100/-100
100/100
Increase/(decrease)
in Profit before
Taxation
Increase/(decrease)
in Other
Components of
Equity
2020
$’000
(5,415)
5,415
2020
$’000
-
-
Increase/(decrease)
in Profit before
Taxation
Increase/(decrease)
in Other
Components of
Equity
2020
$’000
(180)
180
2020
$’000
-
-
117 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 118
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 53
4.
Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
Price risk
The Group is exposed to equity securities and real estate price risk because of investments held by the
Group. These investments are classified on the statement of financial position as available-for-sale, fair
value through profit or loss.
The table below summarises the impact of increases/(decreases) on the Group’s pre-tax profit for the
year and on equity. The analysis is based on the assumption that the equity prices had
increased/decreased by 10% (2020 - 10%) with all other variables held constant.
The Group
Equity Securities
Real estate investment
Increase/
(decrease)
in Profit
before
Taxation
2021
$’000
Increase/
(decrease)
in Profit
before
Taxation
2019
$’000
Effect on
Other
Components
of Equity:
2021
JMD/USD
Effect on
Other
Components
of Equity
2020
$’000
Effect on
Other
Components
of Equity
2021
$’000
Effect on
Other
Components
of Equity
2020
$’000
-
-
-
-
(44,771)
(43,643)
44,771
43,643
(18,991)
18,991
(21,232)
21,232
Change in index:
-10% (2021 – 10%)
+10% (2021– 10%)
The Company
Equity Securities
Real estate investment
Increase/
(decrease)
in Profit
before
Taxation
2021
$’000
Increase/
(decrease)
in Profit
before
Taxation
2020
$’000
Effect on
Other
Components
of Equity:
2021
JMD/USD
Effect on
Other
Components
of Equity
2020
$’000
Effect on
Other
Components
of Equity
2021
$’000
Effect on
Other
Components
of Equity
2020
$’000
-
-
-
-
(44,771)
(43,291)
44,771
43,291
(18,991)
18,991
(21,232)
21,232
Change in index:
-10% (2020 – 10%)
+10% (2020 – 10%)
117 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 118
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
5. Capital Management
Page 54
The Group’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of
statement of financial position, are:
(a) To comply with the capital requirements set by the regulators of the insurance markets where the Group
operates;
(b) To safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns for
stockholders and benefits for other stakeholders; and
(c) To maintain a strong capital base to support the development of its business.
Regulations in Jamaica
To assist in evaluating the current business and strategies, a risk-based capital approach is used in the form of
the Minimum Capital Test (MCT) as stipulated by the Jamaican regulator, the Financial Services Commission
(FSC). The MCT is calculated by management. This information is required to be filed with the FSC on a monthly,
quarterly and annual basis. The required MCT ratio is 250%.
In January 2020, the FSC announced a measure to allow for the relaxation of the MCT ratio of 250% to 150% for
a period of two years. The measure will reduce the amount of capital that he general insurance industry would
need to hold for the purpose of meeting capital adequacy requirements. During this period of regulatory
forbearance, the FSC will carry out a Quantitative Impact Study (QIS) to determine the optimal position for the
MCT that balances growth and stability of the insurance industry. In this period, the amount of dividends paid to
shareholders of the company should not exceed 50% of profit that was achieved for the previous year.
To qualify for the special provisions for relaxed MCT ratio, investment proposals must be approved by the FSC
and commence within the 2-year window provided for in the January 2020 advisory. The company took advantage
of this relaxation through a strategic investment, and as such, the FSC has granted forbearance on the MCT ratio
requirement allowing the company to maintain a minimum MCT ratio of 200.8%.
The MCT ratio for the company for the years ended 31 December 2021 and 2020 are as follows:
Actual MCT ratio
Minimum Required MCT ratio
Regulations in Trinidad and Tobago
2021
209.1%
200.8%
2020
240.4%
200.8%
General Accident Insurance (Trinidad and Tobago) Limited (formerly Motor One Limited) is regulated by The
Central Bank of Trinidad and Tobago under the Insurance Act 2018 which became effective 1 January 2021.
Under the Act the transitional ratios applicable in year one (1) is a Minimum Regulatory Capital Ratio of 110%.As
at year end the company’ solvency ratio was 133%.
Regulations in Barbados
General Accident Insurance (Barbados) Limited is regulated by The Financial Services Commission with
legislative guidance from the Financial Services Act, the Insurance Act and the Exempt Insurance Act. The
company is required to have a margin of solvency determined as the greater of BB$500,000 or 20% of its net
written premium for the financial year. Based on the net admissible assets as at the financial year end, the
company is deemed solvent by a margin of BB$0.7m.
119 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
6. Fair Value Estimation
Page 55
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing
parties in an arm’s length transaction.
In accordance with IFRS 13, the Group discloses fair value measurements for items carried on the statement of
financial position at fair value, by level of the following fair value measurement hierarchy:
(a) Quoted prices (unadjusted) in active markets for identical assets or liabilities are disclosed as Level 1.
(b)
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from prices) are disclosed as Level 2.
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) are
disclosed as Level 3.
(c)
The following table presents the Group’s assets that are measured at fair value. There are no liabilities that are
measured at fair value at the year end, and the Group had no transfers between levels during the year.
At 31 December 2021
Assets
Equity securities
Investment property
Real estate investment
Total assets measured at fair value
At 31 December 2021
Assets
Equity securities
Investment property
Real estate investment
Total assets measured at fair value
Group
Level 1
$’000
Level 2
$’000
Level 3
$’000
451,567
-
-
451,567
-
-
- 328,149
189,912
- 518,061
Total
balance
$’000
451,567
328,149
189,912
969,628
Company
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
balance
$’000
447,709
-
-
447,709
-
-
- 265,000
-
189,911
- 454,911
447,709
265,000
189,911
902,620
119 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 120
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
6. Fair Value Estimation (Continued)
Page 56
At 31 December 2020
Assets
Equity securities
Investment property
Real estate investment
Total assets measured at fair value
At 31 December 2020
Assets
Equity securities
Investment property
Real estate investment
Total assets measured at fair value
The Group
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
balance
$’000
436,567
-
-
436,567
-
-
- 315,048
- 212,329
- 527,377
436,567
315,048
212,329
963,944
The Company
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
balance
$’000
432,913
-
-
432,913
-
-
- 255,938
- 212,329
- 468,267
432,913
255,938
212,329
901,180
Market price is used to determine fair value where an active market (such as a recognised stock exchange) exists
as it is the best evidence of the fair value of a financial instrument. The quoted market price used for financial
assets held by the Group is the current bid price. These instruments are included in Level 1.
However, market prices are not available for all financial assets held by the Group. Therefore, for financial
instruments where no market price is available, the fair values presented have been estimated using present
value or other estimation and valuation techniques. These valuation techniques maximise the use of observable
market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2. If one or more of the
significant inputs is not based on observable market data, the instrument is included in Level 3.
The following methods have been used to value financial instruments:
(a) Investment securities classified as fair value through other comprehensive income and fair value through profit
or loss are measured at fair value by reference to quoted market prices when available. If quoted market prices
are not available, then fair values are estimated on the basis of pricing models or other recognised valuation
techniques;
(b) The fair value of short-term assets and liabilities maturing within one year is assumed to approximate their
carrying amount. This assumption is applied to liquid assets and the short-term elements of all other financial
assets and financial liabilities;
(c) The fair value of variable rate financial instruments is assumed to approximate their carrying amounts, as these
instruments are expected to reprice at the prevailing market rates;
(d) Financial assets at amortised cost are assumed to approximate fair value as these are issued at terms and
conditions available in the market for similar transactions.
121 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 57
6. Fair Value Estimation (Continued)
Fair Value of Investment Properties and Real Estate Fund
An independent valuation of the Group’s Investment Properties and Real Estate Fund was performed by valuers to
determine the fair value as at 31 December 2021. The revaluation surplus has been credited to other comprehensive
income.
Valuation process of the Group On an annual basis the Group engages external, independent and qualified valuers
to determine the fair value of its Investment Properties and Real Estate Fund.
Sales Comparison Approach
The comparison method of valuation was taken in account by examining values of similar properties in and around
surrounding areas. This approach incorporates unobservable inputs which in the valuer’s judgement reflects suitable
adjustments regarding size, age, condition, time of sale, quality of land and buildings and improvements. The higher
the price per square foot the higher the fair value.
Income Approach
The projected net income of the subject properties are discounted using an appropriate capitalisation rate. The most
significant input to this valuation is the rental rate per square foot and the capitalisation rate. Rental rates of the
subject properties are adjusted to reflect the market rent for properties of similar size, location and condition. The
higher rental rate per square foot the higher the fair value. The higher the capitalisation rate the lower the fair value.
The average rent per square foot ranges between $ US8 - $US14.
Sensitivity Analysis
Some of the investment properties and real estate investments held by the Group are measured using an income
approach which considers rental rates and a capitalization rate. The capitalization factor is largely an unobservable
input that have the greatest potential for volatility and have resulted in the classification of the investments in level 3.
The capitalization rates used in the valuations range from 4% to 7%.
Should the capitalization factors increase/decrease by 1 percentage point, it would result in decrease/increase in the
carrying value of investment properties and real estate investments, with all other factors remaining constant, of
$33,333,,000 (2020 - $49,865,000) for the Group and company.
7. Critical Accounting Estimates and Judgements in Applying Accounting Policies
The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities in the
future. Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances. The
resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions that will have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are as follows:
(a) Liabilities arising from claims made under insurance contracts
The determination of the liabilities under insurance contracts represents the liability for future claims payable
by the Group based on contracts for the insurance business in force at the date of the statement of financial
position using several methods, including the Paid Loss Development method, the Incurred Loss
Development method, the Bornhuetter-Ferguson Paid Loss method, the Bornhuetter-Ferguson Incurred
Loss method and the Frequency-Severity method. These liabilities represent the amounts that will, in the
opinion of the actuary, be sufficient to pay future claims relating to contracts of insurance in force, as well as
meet the other expenses incurred in connection with such contracts. A margin for risk or uncertainty (adverse
deviations) in these assumptions is added to the liability. The assumptions are examined each year in order
to determine their validity in light of current best estimates or to reflect emerging trends in the Group’s
experience.
2021 | GENERAL ACCIDENT ANNUAL REPORT 122
121 2021 | GENERAL ACCIDENT ANNUAL REPORT
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
7. Critical Accounting Estimates and Judgements in Applying Accounting Policies (Continued)
(a) Liabilities arising from claims made under insurance contracts (continued)
Page 58
Claims are analysed separately between those arising from damage to insured property and consequential
losses. Claims arising from damage to insured property can be estimated with greater reliability, and the
Group’s estimation processes reflect all the factors that influence the amount and timing of cash flows from
these contracts. The shorter settlement period for these claims, allows the Group to achieve a higher degree
of certainty about the estimated cost of claims, and relatively little IBNR is held at year-end. However, the
longer time needed to assess the emergence of claims arising from consequential losses makes the
estimation process more uncertain for these claims.
(b) Income taxes
There are many transactions and calculations for which the ultimate tax determination is uncertain during the
ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates
of whether additional taxes will be due. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in
the period in which such determination is made.
(c) Fair value of financial assets determined using valuation techniques
As described in Note 6, where the fair values of financial assets recorded on the statement of financial
position cannot be derived from active markets, they are determined using a variety of valuation techniques
that include the use of discounted cash flows model and/or mathematical models. The inputs to these models
are derived from observable market data where possible, but where observable market data are not
available, judgment is required to establish fair values.
For discounted cash flow analysis, estimated future cash flows and discount rates are based on current
market information and rates applicable to financial instruments with similar yields, credit quality and maturity
characteristics. Estimated future cash flows are influenced by factors such as economic conditions, types of
instruments or currencies, market liquidity and financial conditions of counterparties. Discount rates are
influenced by risk free interest rates and credit risk.
Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(d) Measurement of expected credit loss allowance
The measurement of the expected credit loss allowance for financial assets measured at amortised cost and
FVOCI requires that use of complex models and significant assumptions about future economic conditions and
credit behaviour such as the likelihood of customers defaulting and the resulting losses.
A number of significant judgements are also required in applying the accounting requirements for measuring
ECL, such as
i) Determining criteria for significant increase in credit risk
ii) Choosing appropriate models and assumptions for the measurement of ECL
iii) Establishing the number and relative weightings of forward-looking scenarios
Further details about judgements and estimates by the Group are set out in 4 (c)
123 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
8. Segment Information
Page 59
Management has determined the operating segments based on the reports reviewed by the board of directors
that are used to make strategic decisions. All operating segments used by management meet the definition of a
reportable segment under IFRS 8.
The Group is organised into six operating segments. These segments represent the different types of risks that
are written by the entity through various forms of brokers, agents and direct marketing programs, which are located
in Jamaica, Trinidad and Barbados. Management identifies its reportable operating segments by product line
consistent with the reports used by the board of directors. These segments and their respective operations are as
follows:
(a) Motor - Losses involving motor vehicles, this includes liabilities to third parties.
(b) Fire and allied perils - Loss, damage or destruction to insured property as specified on the policy schedule.
(c) Marine - Loss or damage to goods from the perils of the seas and other perils whilst in transit from destination
to destination by sea, air or land and from warehouse to warehouse.
(d) Liability - Legal liability of the insured to third parties for accidental bodily injury, death and/or loss of or
damage to property occurring in connection with the insured’s business, subject to a limit of indemnity. In the
case of an employee liability this is legal liability of the insured to pay compensation to its employees in
respect of death, injury or disease sustained during and in the course of their employment, subject to a limit
of indemnity.
(e) Homeowners and Burglary-
Homeowners - Loss, damage or destruction to insured property used for residential purposes as specified
on the policy schedule, resulting from fire and allied perils, burglary, theft, or accidental damage. This
includes liability to third parties and domestic employees.
Burglary - Loss of or damage to the insured’s property involving forcible and/or violent entry into or exit from
the building including damage to the premises.
Management has aggregated homeowners’ and burglary for the purpose of segment reporting given that
burglary coverage is usually covered under homeowners’ policy.
(f)
Miscellaneous Accidents - This operating segment covers the following policies:
Fidelity Guarantee - Loss of money or goods owned by the insured (or for which the insured is
responsible) as a result of fraud or dishonesty by an employee.
Goods in Transit - Loss, destruction or damage to insured goods by fire and allied perils, including loss
or damage from accidental collision or overturning and whilst in, on or being loaded or unloaded from
any road vehicle or whilst temporarily housed overnight during the ordinary course of transit.
Engineering and machinery breakdown - Loss or damage by fire and allied perils including burglary,
theft and accidental damage to specified equipment, including loss or damage resulting from electrical
and mechanical breakdown subject to maintenance.
Loss of money - Loss, damage or destruction of money including hold-up on premises during and out
of business hours and in transit.
Plate glass - Accident breakage to plate glass windows and doors of buildings.
Personal accident - Compensation for bodily injury caused by violent, visible, external and accidental
means, which injury shall solely and independently of any other cause result in death or dismemberment
within 12 months of such injury. Subject to the limits specified on the policy schedule.
123 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 124
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
8. Segment Information (Continued)
Page 60
The segment information provided to the board of directors for the reportable segments for the year ended
31 December 2021 is as follows:
Group
2021
Fire
$’000
Motor Marine Liability
$’000
$’000
$’000
Homeowners
& Burglary
$’000
Engineering &
Miscellaneous
Accident
$’000
Total
$’000
Gross Premiums Written
8,276,049 3,680,643
179,350 993,732
292,897
537,136
13,959,807
Reinsurance ceded
(8,198,043)
(604,441)
(165,276) (824,582)
(254,074)
(442,435) (10,488,851)
Excess of loss reinsurance
cost
(98,653)
(92,797)
-
(5,184)
(20,358)
-
(216,992)
(20,647) 2,983,405
14,074 163,966
18,465
94,701
3,253,964
(4,817)
(220,196)
198
3,087
Net Premiums Earned
(25,464) 2,763,209
14,272 167,053
Commission income
396,940
309,450
19,566
43,208
(2,338)
16,127
35,214
2,861
(221,205)
97,562
3,032,759
88,479
892,857
Net premiums written
Changes in unearned
premiums, net
Commission expense
(110,792)
(307,770)
(2,597)
(21,975)
(33,802)
(34,090)
(511,026)
Claims expense
(74,450) (1,661,828)
(160)
(2)
(1,299)
(13,621)
(1,751,360)
Management expenses
(20,207) (1,461,699)
(546)
(71,743)
(10,591)
(18,127)
(1,582,913)
Segment results
Unallocated income -
Investment income
Finance charge
Other Income
Depreciation and
amortisation
Profit before tax
Taxation
Net profit
166,027
(358,638)
30,535 116,541
5,649
120,203
80,317
226,526
(7,076)
124,591
424,358
(164,663)
259,695
(110,459)
149,236
125 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 126
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
8.
Segment Information (Continued)
Page 61
2020
Fire
$’000
Motor
$’000
Marine
$’000
Liability
$’000
Homeowners
& Burglary
$’000
Engineering &
Miscellaneous
Accident
$’000
Total
$’000
Gross Premiums Written
7,027,919 3,224,116
202,416
772,467
211,559
606,513 12,044,990
Group
Reinsurance ceded
Excess of loss reinsurance
cost
Net premiums written
Changes in unearned
premiums, net
(6,955,216)
(618,116)
(186,170)
(605,809)
(191,738)
(509,020) (9,066,069)
(71,296)
(78,929)
-
(2,512)
(14,577)
-
(167,314)
1,407 2,527,071
16,246
164,146
5,244
97,493
2,811,607
Net Premiums Earned
998 2,441,524
16,364
173,977
(409)
(85,547)
118
9,831
(934)
4,310
5,894
(71,047)
103,387
2,740,560
Commission income
352,238
200,487
20,981
34,194
64,056
99,261
771,217
Commission expense
(95,141)
(282,664)
(2,767)
(21,089)
(25,742)
(38,231)
(465,634)
Claims expense
6,996 (1,724,288)
(114)
(80,327)
Management expenses
(17,084) (1,114,359)
(318)
(61,256)
(542)
(5,801)
(18,651) (1,816,926)
(28,954) (1,227,772)
248,007
(479,300)
34,146
45,499
36,281
116,812
1,445
Segment results
Unallocated income -
Investment income
Finance charge
Other income
Depreciation and
amortisation-
Profit before tax
Taxation
Net profit
Total capital expenditure was as follows:
Property, plant and equipment
Intangible assets
293,886
(14,642)
95,536
376,280
(116,744)
259,536
(65,724)
193,812
2020
$’000
151,819
7,006
158,825
2021
$’000
127,134
536
127,670
Assets, liabilities and capital expenditure are not reported by segment to the Board of Directors.
125 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 62
9. Related Party Transactions and Balances
(a) Related party transactions are as follows:
Dividend income
Subsidiary
Affliliated companies
Interest income -
Fellow subsidiary
Parent
Group
Company
2021
$’000
2020
$’000
-
18,822
18,822
-
14,261
14,261
¤
10,609
6,232
16,841
6,484
5,245
11,729
2021
$’000
-
18,822
18,822
10,609
6,232
16,841
2020
$’000
103,563
14,262
117,825
6,484
5,245
11,729
Rental and lease payments-
Affiliated company
38,803
35,458
38,803
35,458
Premium income -
Key management
Parent company
Fellow subsidiaries
Affiliates
Claims expense -
Parent company
Fellow subsidiaries
Affiliates
Dividends declared -
Key management
Parent company
Key management compensation -
Salaries and other short-term
benefits
Post employment benefits
Directors emoluments
Directors’ emoluments (included
above)
Directors’ fees (included above)
2,042
22,053
547,207
69,188
640,490
650
21,992
3,098
28,710
2,217
157,360
159,577
2,269
32,199
466,615
20,853
521,936
736
11,892
2,056
14,684
2,586
178,134
180,720
2,042
22,053
547,207
69,188
640,490
650
21,992
3,098
28,710
2,269
32,199
466,615
20,853
521,936
736
11,892
2,056
14,684
2,217
157,360
159,577
2,586
178,134
180,720
305,374
12,153
252,220
11,316
257,534
12,153
208,002
11,316
107,768
4,069
73,013
3,128
104,729
1,030
70,915
1,030
127 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 128
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
9. Related Party Transactions and Balances (Continued)
(b) The statement of financial position includes the following balances with group companies:
Page 63
Due from related parties -
Subsidiary
Affiliated company
Due from policyholders, brokers and agents -
Fellow subsidiary
Parent company
Affiliated company
Investment securities -
The Group
The Company
2021
$’000
2020
$’000
2021
$’000
-
6,083
6,083
-
22,288
22,288
80,449
6,083
86,532
2020
$’000
29,543
22,710
52,253
44,865
-
37,018
81,883
19,797
7
32,449
52,253
44,865
19,797
-
37,018
81,883
7
32,449
52,253
Shares in affiliated entities (Note 23)
433,591
392,235
433,591
392,235
Claims liabilities
Parent company
Affiliated company
Fellow subsidiary
8,292
11,337
892,355
911,984
15,867
549
54,167
70,583
8,292
11,337
892,355
911,984
15,867
549
54,167
70,583
Included in the investments of the Group are shares in related parties. At 31 December 2021, these shares
represented 3.47% of the total assets (2020 – 4.64%).
Affiliates represent companies that are associated with the parent company, which are not subsidiaries of the
parent company and also entities over which the directors have significant influence.
No provisions made for receivables from related parties for either year.
10. Claims Expense
Gross claims expense
Reinsurance share of claims (Note 4(b) (d))
Net claims expense
The Group
The Company
2021
$'000
2020
$'000
2021
$'000
2020
$'000
3,033,569
2,255,405
2,566,366
1,994,430
(1,282,209)
(438,479) (1,237,625)
(431,950)
1,751,360
1,816,926
1,328,741
1,562,480
Included in Gross claims expense is $1.1 billion paid to related parties most of which have been recovered from
reinsurers.
2021 | GENERAL ACCIDENT ANNUAL REPORT 128
127 2021 | GENERAL ACCIDENT ANNUAL REPORT
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
11. Investment Income
Page 64
Interest income
Lease receivable
Loan due from fellow subsidiary
Loan due from parent
The Group
The Company
2021
$'000
2020
$'000
2021
$'000
11,062
10,609
6,233
4,880
6,484
5,245
11,062
10,609
6,233
2020
$'000
4,880
6,484
5,245
Cash and deposits and investment securities
140,080
156,624
103,138
94,561
Bond premium amortisation
Dividend income
Gain on disposal of investment property
Real estate investment income
Rental income from investment property
Revaluation gains on investment property
Loss allowance reversed on investments
12. Other Income
Foreign exchange gains
Gain on disposal of property, plant and equipment
Roadside assistance
Miscellaneous income
167,984
173,233
131,042
111,170
(965)
(3,381)
(976)
(3,370)
167,019
169,852
130,066
107,800
18,822
-
11,119
19,981
6,803
2,782
14,299
33,969
13,628
38,117
21,811
2,210
18,822
117,825
-
11,119
19,045
6,803
-
13,628
19,688
20,015
-
226,526
293,886
185,855
278,956
The Group
The Company
2021
$'000
102,094
6,271
36
16,190
2020
$'000
80,841
2,490
6,454
5,806
124,591
95,591
2021
$'000
102,094
5,633
-
(9,429)
98,298
2020
$'000
82,607
2,490
-
4,933
90,030
129 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 130
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 65
13. Expenses by Nature
Management and other expenses by nature are as follows:
The Group
The Company
Advertising costs
Asset tax
Audit fees
Bank charges and fees
Computer expenses
Directors fees
2021
$'000
113,289
13,546
19,957
17,269
82,038
5,437
2020
$'000
80,596
14,564
17,255
12,930
62,763
3,124
Depreciation and amortisation (Note (27,28,31)
157,030
120,451
2021
$'000
75,429
13,546
10,800
14,399
70,182
2,430
98,573
1,831
5,104
1,215
45,801
45,890
13,559
30,054
2,316
57,972
-
2020
$'000
75,550
14,564
9,800
11,762
62,071
1,030
83,871
7,333
4,583
615
34,930
31,681
13,848
19,843
444
47,674
-
4,667
6,056
3,447
7,006
16,066
85,362
79,335
21,478
36,224
1,414
61,189
28,155
12,222
7,333
6,370
10,011
38,691
45,480
19,463
24,848
709
49,903
23,384
8,649
927,913
752,010
709,040
590,758
4,753
54,446
8,059
37,923
4,754
31,328
4,175
30,183
1,747,576
1,344,516
1,238,890
1,050,771
The Group
The Company
2021
$'000
726,755
59,420
14,980
126,758
2020
$'000
600,949
50,340
13,699
87,022
2021
$'000
555,826
50,390
14,620
88,204
2020
$'000
457,313
43,004
13,164
77,277
927,913
752,010
709,040
590,758
2021 | GENERAL ACCIDENT ANNUAL REPORT 130
ECL allowance
Insurance
Irrecoverable VAT
Other operating expenses
Professional fees
Printing and stationery
Registration fees
Rent
Repairs and maintenance
Roadside assistance
Security
Staff costs (Note 14)
Transportation expenses
Utilities
14. Staff Costs
Wages and salaries
Statutory contributions
Pension costs
Other
129 2021 | GENERAL ACCIDENT ANNUAL REPORT
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
15. Taxation
Page 66
(a) The company’s shares were listed on the Junior Market of the Jamaica Stock Exchange, effective
21 September 2011. Consequently, the company 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 company 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 $102,978,000 (2020 - $66,441,000,000).
As a result of the above, the tax rate for the company up to the 21 September 2022 was 16.67% and 33.33%
for the rest of the year.
(b) Taxation is based on the profit for the year adjusted for taxation purposes and represents income tax at
16.67% - 33 ⅓%:
Current income tax
Deferred income tax (Note 32)
The Group
The Company
2021
$'000
97,857
12,602
2020
$'000
72,607
(6,883)
2021
$'000
91,306
14,127
110,459
65,724
105,433
2020
$'000
66,440
(5,357)
61,083
(c) The tax charge on the Group’s profit differs from the theoretical amount that would arise using the statutory
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
Net effect of other charges and allowances
The Group
The Company
2021
$'000
259,695
2020
$'000
2021
$'000
2020
$'000
259,536
606,586
454,487
The Group
The Company
2021
$’000
130,847
2020
$’000
114,575
2021
$’000
202,195
2020
$’000
151,492
(102,978)
(66,441)
(102,978)
(19,573)
(54,551)
11,391
86,762
4,010
110,459
19,075
43,499
9,567
65,724
-
7,231
-
1,015
105,433
(66,441)
(41,193)
12,295
-
(4,930)
61,083
131 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 132
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
16. Earnings Per Share
Page 67
The calculation of earnings per share is based on the net profit for the year and 1,031,250,000
ordinary shares in issue.
Net profit from continuing operations attributable to owners ($’000)
Weighted average number of ordinary shares in issue (‘000)
Earnings per share ($)
2021
2020
254,750
1,031,250
0.25
242,503
1,031,250
0.24
The net profit and retained earnings of the Group are reflected in the accounts of the company and its
subsidiaries as follows:
Net profit
Company
Subsidiaries
Retained earnings.
Company
Subsidiaries
17. Dividends per Share
The dividends paid in 2021 and 2020 were as follows:
Interim dividends: -
19.07 cents per stock unit – December 2021
21.59cents per stock unit – December 2020
18. Cash and Cash Equivalents
2021
$’000
2020
$’000
501,153
393,404
(351,917)
(199,592)
149,236
193,812
2021
$’000
2,153,512
(283,885)
1,869,627
2020
$’000
1,849,060
(37,482)
1,811,578
2021
$’000
2020
$’000
196,701
-
196,701
-
222,668
222,668
Cash and bank balances
Short-term deposits
The Group
The Company
2021
$’000
2020
$’000
2021
$’000
1,312,639
500,162
675,772
131,544
256,386
8,850
1,444,183
756,548
684,622
2020
$’000
317,080
135,884
452,964
2021 | GENERAL ACCIDENT ANNUAL REPORT 132
131 2021 | GENERAL ACCIDENT ANNUAL REPORT
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
18. Cash and Cash Equivalents (Continued)
Page 68
Short term deposits comprise term deposits and repurchase agreements with an average maturity of 90 days
(2020 – 90 days) and include interest receivable of $245,000 (2020 – $644,000 ).
The weighted average effective interest rate on short term investments and deposits were as follows:
US$
The Group
2021
%
2.20
2020
%
2.20
The Company
2021
%
2.20
2020
%
2.20
The weighted average effective interest rates on cash balances for the year were as follows:
BB$
J$
19. Due from Reinsurers and Coinsurers
Reinsurers’ portion of unearned premium
Reinsurers’ portion of claims liabilities
Other amounts recoverable from reinsurers and
coinsurers
The Group
The Company
2021
%
0.5
1.0
2020
%
0.5
1.0
2021
%
0.5
1.0
2020
%
0.5
1.0
The Group
The Company
2021
$’000
996,977
1,693,201
2020
$’000
925,356
960,838
2021
$’000
937,670
1,609,542
2020
$’000
907,621
829,802
590,730
416,055
581,883
510,577
3,280,908
2,302,249
3,129,095
2,248,000
133 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 134
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 69
20. Other Receivables
Prepayments
Other receivables
The Group
The Company
2021
$’000
2020
$’000
2021
$’000
2020
$’000
99,609
82,523
93,144
80,437
758,424
161,052
723,076
150,257
858,033
243,575
816,220
230,694
Included in other receivables are amounts due from third parties that are fully collaterised.
21. Loans receivables
The Group
2021
$’000
2020
$’000
Mortgage loan
244,188
251,464
Current portion of loan receivable
Non-current portion.
62,550
18,004
181,638
233,460
244,188
251,464
This is a mortgage loan secured on property located at 120 and 122 Eastern Main Road, Barataria and repayable
by fixed monthly instalments over a period twelve (12) years with the following terms and conditions:
(i) Variable interest rate based on commercial banks’ average lending rate as published by the Central Bank
of Trinidad and Tobago with a floor of 5% adjustable at each anniversary date. The initial interest rate is 7%.
(ii) Balloon repayment of capital from the assignment of monies due and payable under the share purchase
agreement on the acquisition of subsidiary.
(iii) Assignment of insurance policy on property.
133 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 134
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
22. Lease receivables
Page 70
Gross investment in finance leases
Not later than one year
Later than one year and not later than five year
Less: Unearned income
Net investment in finance leases may be classified as follows:
Note later than one year
Later than one year and not later than five years
The Group and Company
2021
$'000
2020
$'000
23,410
64,888
88,298
(20,978)
67,320
23,410
87,787
111,197
(32,040)
79,157
14,336
52,984
67,320
12,348
66,809
79,157
23. Investment Securities
Debt securities -
At amortised cost:
The Group
The Company
2021
2020
$’000
$’000
2021
$’000
2020
$’000
Government Jamaica Securities
Government of Trinidad and Tobago
Certificate of Deposits
United States Dollar Long Term Deposits
United States Dollar Corporate Bonds
Other Government Securities
Interest receivable
Equity investments at fair-value through OCI
31,717
308,669
31,717
1,105,016
31,717
-
31,717
-
1,639,725
106,926
2,209,595
160,882
1,193,956
106,926
1,951,628
160,882
230,061
302,683
98,538
122,400
230,061
306,786
98,538
122,400
2,619,781
3,728,148
1,869,446
2,365,165
30,319
46,071
451,567
436,567
26,216
447,709
41,232
432,913
3,101,667
4,210,786
2,343,371
2,839,310
135 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 136
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
23. Investment Securities (Continued)
Page 71
Weighted average effective interest rate:
The Group
The Company
Government of Jamaica Securities
Government of Trinidad and Tobago
Certificate of Deposits
United States Long Term Deposits
United States Dollar Corporate Bonds
Other Government Securities
2021
%
2020
%
2021
%
4.11
5.25
3.45
3.11
7.00
4.43
4.11
5.25
3.45
3.11
7.00
4.43
4.11
-
4.05
3.33
7.0
4.38
2020
%
4.11
-
3.45
3.11
7.00
4.43
Included in investments are Government of Jamaica securities valued at $18,000,000 and a Certificate of
Deposit for $30,000,000.00 (2020 - $48,000,000) which have been pledged with the FSC, pursuant to Section
8(1)(b) of the Insurance Regulations, 2001.
Bonds, securities, and other investments are pledged with the Inspector of Financial Institutions amounted to
TT$60,076,997 (2020 - TT$89,422,848)
Investments pledged with the Barbados FSC, pursuant to Exempt Insurance Act amounted to BBD $250,0000.
The Group’s holdings in equity investments for 2021 and 2020 includes investment in affiliated companies (Note
9).
24. Investment in Subsidiaries
General Accident Insurance (Trinidad and Tobago) Limited
(formerly Motor One Insurance Company Limited) – (65% - 2020 (55%)
426,322 – (2020 - 360,374 Ordinary shares)
General Accident Insurance (Barbados) Limited
2,400,000 Ordinary shares
The Company
2021
$’000
2020
$’000
393,012
393,012
165,893
165,893
558,905
558,905
135 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 136
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 72
25. Investment Property
At 1 January
Additions
Disposal
Revaluation (credited to profit or loss) (Note 11)
Translation differences
At 31 December
The Group
The Company
2021
2020
2021
$'000
315,048
2,259
-
6,803
$'000
519,216
6,123
(264,789)
21,811
$'000
255,938
2,259
6,803
20,015
2020
$'000
229,800
6,123
-
4,039
32,687
-
-
328,149
315,048
265,000
255,938
Property income and direct expenses including repairs and maintenance in relation to investment properties are
as follows:
Rental income
Direct costs
The Group
The Company
2021
2020
2021
$'000
19,976
(11,732)
$'000
38,117
(9,021)
$'000
19,045
(11,732)
2020
$'000
19,688
(9,021)
The properties of the Group were valued at current market value as at November 2020 by Bhanmati Seecharan
in Trinidad and in December 2021 by NAI Jamaica Langford and Brown in Jamaica. Both parties are independent
qualified property appraisers and valuators. The values for the properties have been established using the sales
comparison method, which considers the values of similar properties in and around surrounding areas.
The valuation of investment property have been classified as Level 3 of the fair value hierarchy under IFRS 13,
Fair Value Measurement. The valuations have been performed using a comparable sales approach but, as there
have been a limited number of similar sales in the location, unobservable inputs determined based on the
valuators’ judgement regarding size, age, condition were utilised.
137 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 138
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 73
26. Real Estate Investment
At 1 January
Revaluation (charged to other comprehensive income)
Closing
The Group and
Company
2021
$’000
212,329
(22,417)
2020
$’000
193,633
18,696
189,912
212,329
This represents the Group's beneficial interest in a property which is leased to third parties and held in trust for a
Investments Jamaica Limited.
group of
investors under a Trust Deed managed by Scotia
Rental income from the real estate investment for the year was $11,119,000 (2020 - $13,628,000 ).
The property was last valued at current market value in December 2020 by NAI Jamaica Langford and Brown,
independent qualified property appraisers and valuators.
The fair value of the investment is at level 3 in the fair value hierarchy, as is consistent with the requirements of
IFRS 13 (Note 6).
137 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 138
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
27. Property, Plant and Equipment
Page 74
The Group
Land and
Buildings
Furniture,
Fixtures &
Equipment
Motor
Vehicles
Work in
Progress
Total
$’000
$’000
$’000
$’000
$’000
Cost -
At 1 January 2020
472,787
188,898
128,882
2,367
792,934
Transfer to intangible assets
Transfers work-in-progress
Additions
Write-off
Disposals
Adjustment
2,367
19,493
(1,430)
-
48
(16,353)
-
- -
-
-
(16,353)
(2,367)
-
89,879
23,264
19,043
151,679
(66,798)
(17,777)
(203)
(106,134)
(20)
-
170
-
-
-
-
(86,005)
(106,337)
28
31,192
Translation differences
25,428
5,594
At 31 December 2020
518,693
200,997
28,405
19,043
767,138
Transfers
Additions
Disposals
33,531
24,414
-
(33,531)
-
80,136
9,155
13,429
127,134
-
(3,318)
(4,165)
-
(7,483)
Translation differences
25,334
8,783
2,130
1,059
37,306
At 31 December 2021
601,972
286,598
35,525
Depreciation -
At 1 January 2020
29,163
112,580
76,757
Transfer to intangible asset
-
(12,287)
-
Charge for the year
14,849
21,073
17,083
Write-off
Relieved on disposal
Translation differences
At 31 December 2020
Charge for the year
Relieved on disposal
Translation differences
At 31 December 2021
Net Book Value -
31 December 2021
31 December 2020
(1,430)
(66,798)
(17,777)
(203)
(55,981)
422
43,004
21,201
-
337
64,542
4,593
58,958
35,072
-
2,028
96,058
170
20,252
3,764
(3,560)
2,131
22,587
537,430
190,540
12,938
475,689
142,039
8,153
19,043
644,924
-
-
-
-
-
-
-
-
-
-
-
-
924,095
218,500
(12,287)
53,005
(86,005)
(56,184)
5,185
122,214
60,037
(3,560)
4,496
183,187
740,908
139 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 140
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
27. Property, Plant and Equipment (Continued)
Page 75
The Company
Land and
Buildings
Furniture,
Fixtures &
Equipment
Motor
Vehicles
Work in
Progress
Total
$’000
$’000
$’000
$’000
$’000
141,470
11,187
183,901
36,768
128,951
23,264
-
(203)
(106,129)
2,367
456,689
-
-
71,219
(106,332)
-
(2,367)
-
2,367
(1,430)
48
153,642
24,391
(66,798)
(17,777)
(20)
153,648
42,111
-
28,309
3,613
-
(3,317)
(4,166)
Cost -
At 1 January 2020
Additions
Disposal
Transfers/Reclassification
(Note 28)
Write-off
Adjustments
At 31 December 2020
Additions
Disposal
At 31 December 2021
178,033
192,442
27,756
Depreciation -
At 1 January 2020
Charge for the year
Relieved on disposal
Write-off
Adjustment
At 31 December 2020
Charge for the year
Disposals
37,483
8,304
-
114,784
18,664
76,826
17,083
(203)
(55,981)
(1,430)
(66,798)
(17,777)
16
44,373
9,172
-
(2,921)
63,526
26,424
-
20,151
3,672
(1,327)
(3,560)
At 31 December 2021
53,545
88,623
20,263
Net Book Value -
31 December 2021
31 December 2020
124,488
109,269
103,819
90,122
7,493
8,158
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(86,005)
28
335,599
70,115
(7,483)
398,231
229,093
44,051
(56,184)
(86,005)
(2,905)
128,050
39,268
(4,887)
162,431
235,800
207,549
139 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 140
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
28. Intangible Assets
Page 76
The Group
Renewal
Distribution
Rights
Relationships Licence Website
Computer
Software
$’000
$’000
$’000
$’000
$’000
38,221
-
-
38,221
-
-
38,221
7,644
-
7,644
-
15,288
7,644
-
22,932
15,289
22,933
12,070 142,826
-
-
-
-
12,070 142,826
-
-
12,070 142,826
-
-
1,509
-
1,509
-
3,018
1,509
-
4,527
-
-
-
-
-
7,543 142,826
9,052 142,826
9,462
-
-
9,462
-
-
9,462
1,192
-
2,933
-
4,125
3,122
-
7,247
2,215
5,337
86,373
16,353
7,006
1,612
111,344
479
1,255
113,078
82,433
12,287
2,053
1,114
97,887
2,231
819
100,937
12,141
13,458
Total
$’000
288,952
16,353
7,006
1,612
313,923
479
1,255
315,657
92,778
12,287
14,139
1,114
120,318
14,506
819
135,643
180,014
193,605
At Cost -
At 1 January 2020
Transfers
Additions
Translation differences
At 31 December 2020
Addition
January 2021
Translation differences
At 31 December 2021
Amortisation -
At 1 January 2020
Transfers
Charge for the year
Translation differences
At 31 December 2020
Charge for the year
Translation differences
At 31 December 2021
Net Book Value -
31 December 2021
31 December 2020
141 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 142
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
28. Intangible Assets (Continued)
Page 77
At Cost -
At 1 January 2020
Additions
At 31 December 2020
Additions
At 31 December 2021
Amortisation -
At 1 January 2019
Charge for the year
At 31 December 2019
Charge for the year
At 31 December 2021
Net Book Value -
31 December 2021
31 December 2020
29. Due to Reinsurers and Coinsurers
Local reinsurers
Overseas reinsurers
The Company
Computer
Website
Software
$’000
$’000
9,462
-
9,462
-
9,462
1,192
2,933
4,125
3,123
7,248
2,214
5,337
86,373
3,025
89,398
-
89,398
82,433
1,507
83,939
1,050
84,989
4,409
5,458
Total
$’000
95,835
3,025
98,860
-
98,860
83,625
4,440
88,065
4,173
92,238
6,623
10,795
The Group
2021
$'000
2020
$'000
The Company
2021
$'000
2020
$'000
208,215
857,294
1,065,509
128,429
826,189
954,618
140,947
107,353
842,388
826,188
983,335
933,541
141 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 142
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
30. Other Liabilities
Page 78
Statutory contributions payable
Accrued expenses
Sales and premium tax payable
Other payables
Deferred consideration
The Group
The Company
2021
$’000
15,957
124,184
211,692
190,747
7,064
549,644
2020
$’000
11,074
185,466
124,900
82,280
7,064
410,784
2021
$’000
9,399
95,799
203,649
94,053
7,064
409,964
2020
$’000
8,561
126,973
126,549
64,496
7,064
333,643
31. Leases
This note provides information for leases where the Group is a lessee.
(a) Right of use assets
Cost
1 January 2020
Adjustment
Disposal (termination)
Additions
1 January 2021
Disposal (termination)
Additions
Translation
31 December 2021
Accumulated Depreciation
1 January 2020
Charge for the year
Disposal(termination)
1 January 2021
Charge for the year
Disposal(termination)
Translation difference
31 December 2021
Net Book Value
31 December 2020
31 December 2021
Right of Use-Asset
The Group The Company
$’000
158,827
-
(5,148)
109,352
263,031
(1,382)
15,023
3,125
279,797
66,670
53,307
(5,148)
114,829
82,178
(307)
933
197,633
148,202
82,164
$’000
140,845
(228)
(5,148)
61,888
197,357
(1,382)
9,685
-
205,660
54,346
35,380
(5,148)
84,578
55,133
(307)
-
139,404
112,779
66,256
143 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 79
31. Leases (Continued)
Amounts recognised in the statement of financial position
Right-of-use assets
Motor Vehicles
Land and buildings
Lease liabilities
Current
Non-current
(b) Lease liabilities
1 January
Additions
Lease payments
Interest on lease liability
Termination
Foreign exchange translation
31 December
(c) Amounts recognised in profit or loss
The Group
2021
$’000
2020
$’000
31,159
51,005
82,164
48,760
99,442
148,202
54,040
49,167
103,207
55,888
106,633
162,521
The Company
2021
$’000
2020
$’000
31,159
35,097
66,256
60,546
24,740
85,286
48,760
64,019
112,779
52,185
74,594
126,779
The Group
2021
$’000
2020
$’000
The Company
2021
$’000
2020
$’000
162,521
8,590
(82,921)
7,402
-
7,615
103,207
98,015
109,583
(59,788)
8,428
-
6,283
162,521
126,779
9,685
(62,600)
7,076
(1,095)
5,441
85,286
92,148
62,426
(40,741)
6,214
-
6,732
126,779
The statement of profit or loss shows the following amounts relating to right-of-use assets:
Depreciation charge of right-of-use assets
Motor Vehicle
Land and buildings
Interest expense
The Group
2021
$’000
2020
$’000
The Company
2021
$’000
2020
$’000
16,526
65,652
82,178
1,393
51,914
53,307
7,401
8,428
16,526
38,606
55,132
7,076
1,393
33,987
35,380
6,214
143 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 144
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 80
32. Deferred Income Taxes
Deferred income taxes are calculated in full on temporary differences under the liability method using a principal
tax rate of 33.33%% (16.67⅓% restricted to 50% based on remission year 5 to 10).
Deferred income tax assets
The Group
The Company
2021
$’000
3,772
2020
$’000
3,166
2021
$’000
3,772
2020
$’000
3,166
Deferred income tax liabilities
(54,424)
(41,216)
(26,817)
(12,084)
Net liabilities
(50,652)
(38,050)
(23,045)
(8,918)
The net movement on the deferred income tax account is as follows:
The Group
The Company
2021
$’000
2020
$’000
2021
$’000
2020
$’000
At the beginning of the year
(38,050)
(44,933)
(8,918)
(14,275)
Profit or loss (Note 15)
At end of year
(12,602)
6,883
(14,127)
5,357
(50,652)
(38,050)
(23,045)
(8,918)
145 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 146
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
32. Deferred Income Taxes (Continued)
Deferred income tax assets and liabilities are attributable to the following items:
Page 81
Deferred income tax assets
Accelerated depreciation
Accrued vacation
Deferred income tax liabilities
Unrealised foreign exchange gains
Accelerated depreciation
Intangible assets
Interest receivable
The Group
The Company
2021
$'000
-
3,772
3,772
2020
$'000
1,878
3,167
5,045
2021
$'000
-
3,772
3,772
2020
$'000
1,878
3,167
5,045
The Group
The Company
2021
$'000
3,885
12,794
27,607
10,138
54,424
2020
$'000
3,779
-
29,132
10,184
43,095
2021
$'000
3,885
12,794
-
10,138
26,817
2020
$'000
3,779
-
-
10,184
13,963
The deferred tax movement in the profit or loss comprises the following temporary differences
The Group
The Company
Accelerated depreciation
2021
$’000
14,672
2020
$’000
9,202
Unrealised foreign exchange gains
106
(3,779)
Intangible assets
Accrued vacation
Interest receivable
(1,525)
(605)
(46)
(12,602)
1,526
1,807
(1,873)
6,883
2021
$’000
14,672
106
-
(605)
(46)
2020
$’000
9,202
(3,779)
-
1,807
(1,873)
14,127
5,357
145 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 146
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 82
33. Insurance Reserves
(a) These reserves are as follows:
Gross -
Unearned premiums
Claims liabilities
Unexpired risk reserve
Unearned commission
Recoverable from reinsurers -
Reinsurers’ portion of unearned premiums
(Note 19)
Reinsurers’ portion of claims liabilities
(Note 19)
Net -
Unearned premiums
Claims liabilities
Unexpired risk reserve
Unearned commission
(b) Claims liabilities comprise:
Gross -
Outstanding claims
IBNR
Unallocated loss adjustment expense
Recoverable from reinsurers -
Outstanding claims
IBNR
Net -
Outstanding claims
IBNR
Unallocated loss adjustment expense
The Group
2021
$’000
2020
$’000
The Company
2021
$’000
2020
$’000
2,705,681
4,838,990
31,662
235,275
7,811,608
2,402,954
3,996,178
18,966
206,631
6,624,729
2,226,796
3,403,453
-
225,970
5,856,219
2,172,550
2,638,999
-
202,964
5,014,513
(996,977)
(1,693,201)
(2,690,178)
(925,356)
(937,670)
(960,838) (1,609,542)
(1,886,194) (2,547,212)
(907,621)
(829,802)
(1,737,423)
1,708,704
3,145,789
31,662
235,270
5,121,425
1,477,590
3,035,349
18,976
206,597
4,738,512
1,289,126
1,793,911
-
225,970
3,309,007
1,264,929
1,809,197
-
202,964
3,277,090
The Group
2021
$’000
2020
$’000
The Company
2021
$’000
2020
$’000
3,442,824
1,375,793
20,373
4,838,990
1,326,485
366,716
1,693,201
2,116,339
1,009,077
20,373
2,865,813
2,767,597
2,066,896
1,110,043
20,331
3,996,187
615,483
20,373
551,772
20,331
3,403,453
2,638,999
661,568
1,252,472
299,270
357,070
960,838
1,609,542
530,532
299,270
829,802
2,204,244
810,773
20,331
1,515,125
1,536,364
258,413
20,373
252,502
20,331
3,145,789
3,035,349
1,793,911
1,809,197
147 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 148
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
33. Insurance Reserves (Continued)
Page 83
An actuarial valuation was performed to value the policy and claims liabilities of the Group as at 31 December 2021
in accordance with the Insurance Act of Jamaica by the appointed actuary, Josh Worsham, FCAS, MAAA of Mid
Atlantic Actuarial. The Insurance Act requires that the valuation be in accordance with accepted actuarial principles.
The actuary has stated that his report conforms to the standards of practice as established by the Canadian Institute
of Actuaries, with such changes as directed by the Financial Services Commission, specifically, that the valuation of
some policy and claims liabilities not reflect the time value of money.
For consistency, the management also performed a valuation for the policy and claim liabilities of the subsidiaries
as at 31 December 2021 using the same appointed actuary.
In arriving at his valuation, the actuary employed the Paid Loss Development method, the Incurred Loss
Development method, the Bornhuetter-Ferguson Paid Loss method, the Bornhuetter-Ferguson Incurred Loss
method and the Frequency-Severity method.
In using the Paid/Incurred Loss Development methods, ultimate losses are estimated by calculating past
paid/incurred loss development factors and applying them to exposure periods with further expected paid/incurred
loss development. The Bornhuetter-Ferguson Paid/Incurred Loss methods is a combination of the Paid/Incurred
Loss Development methods and a loss ratio method; however, these expected losses are modified to the extent
paid/incurred losses to date differ from what would have been expected based on the selected paid/incurred loss
development pattern. Finally, the Frequency-Severity method is calculated by multiplying an estimate of ultimate
claims with an estimate of the ultimate severity per reported claim.
In his opinion dated 5 April 2022 for the Company, the actuary found that the amount of policy and claims liabilities
represented in the statement of financial position at 31 December 2021 makes proper provision for the future
payments under the Group’s policies and meets the requirements of the Insurance Act and other appropriate
regulations of Jamaica; that a proper charge on account of these liabilities has been made in profit or loss; and that
there is sufficient capital available to meet the solvency standards as established by the Financial Services
Commission.
The movement in claims outstanding was as follows:
Net reserves for claims outstanding at beginning of year –
Gross reserves for claims outstanding
Reinsurance ceded
The Group
2021
$’000
2020
$’000
The Company
2021
$’000
2020
$’000
3,996,187
3,841,286
(960,838)
(692,238)
3,035,349
3,149,048
2,638,999
(829,802)
1,809,197
2,260,567
(692,238)
1,568,329
Movement during the year –
Acquisition of outstanding claims
Claims incurred, including IBNR
Claims paid
Recovery from reinsurers
-
1,895,641
1,851,057
(3,113,029)
(2,407,858)
1,310,687
438,479
Translation differences on foreign currency claims
17,141
4,623
110,440
(113,699)
Net reserves for claims outstanding at end of year
3,145,789
3,035,349
Reinsurance ceded
1,693,201
960,838
Gross reserves for claims outstanding at end of year
4,838,990
3,996,187
1,313,454
(2,566,366)
1,237,625
-
(15,287)
1,793,910
1,609,543
3,403,453
1,803,348
(1,994,430)
-
431,950
3
4
3
,
240,868
0
7
1
829,802
1,809,197
2,638,999
147 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 148
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
33. Insurance Reserves (Continued)
Page 84
Significant delays occur in the notification of claims and a substantial measure of experience and judgement is
involved in assessing outstanding liabilities, the ultimate cost of which cannot be known with certainty as at the
reporting date. The reserve for claims outstanding is determined on the basis of information currently available;
however, it is inherent in the nature of the business written that the ultimate liabilities may vary as a result of
subsequent developments.
(c) The movement in unearned premiums for the group and company are as follows:
The Group
2021
Gross
$’000
Reinsurance
$’000
Net
$’000
2020
Reinsuranc
e
$’000
Gross
$’000
Net
$’000
2,402,954
(925,356)
1,477,598
2,431,720
(1,040,631)
1,391,089
13,959,807
(10,488,851)
3,470,956
12,044,990
(9,066,069)
2,978,921
(13,657,080)
10,417,230
(3,239,850)
(12,073,764)
9,181,344
(2,892,420)
302,727
(71,621)
231,106
(28,774)
115,275
86,501
2,705,681
(996,977)
1,708,704
2,402,946
(925,356)
1,477,590
Balance at 1 January
Premiums written
during the year
Premiums earned
during the year
Balance at 31
December
The movement in unearned premiums for the company is as follows:
The Company
2021
2020
Gross
$’000
Reinsurance
$’000
Net
$’000
Gross
$’000
Reinsurance
$’000
Net
$’000
2,172,550
(907,621)
1,264,929
2,258,707
(1,040,631)
1,218,076
12,974,308
(10,327,323)
2,646,985
11,592,313
(9,037,477)
2,554,836
12,920,062
(10,297,274)
2,622,788
11,678,470
(9,170,487)
2,507,983
54,246
(30,049)
24,197
(86,157)
133,010
46,853
2,226,796
(937,670)
1,289,126
2,172,550
(907,621)
1,264,929
Balance at 1 January
Premiums written
during the year
Premiums earned
during the year
Balance at 31
December
149 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
33. Insurance Reserves (Continued)
The gross unearned premium reserve by class of business is as follows:
Page 85
Fire, consequential loss and liability
Motor
Other
34. Share Capital
The Group
The Company
2021
$’000
678,534
1,857,681
169,471
2,705,686
2020
$’000
622,962
1,611,075
168,909
2,402,946
2021
$’000
638,324
2020
$’000
605,199
1,429,033
1,400,497
159,439
166,854
2,226,796
2,172,550
2021
$’000
2020
$’000
Authorised -
1,100,000,000 Ordinary shares of no par value
Issued and fully paid -
1,031,250,000 Ordinary shares of no par value
470,358
470,358
35. Capital Reserves
At beginning of and end of year
2021
$’000
2020
$’000
152,030
152,030
The capital reserves at year end represent realised surpluses.
36. Property Revaluation Reserve
This represents the unrealised surplus on the revaluation of real estate investment.
37. Fair Value Reserve
This represents the unrealised surplus on the revaluation of investments classified as Fair Value through Other
Comprehensive Income (FVOCI).
149 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
38. Non-Controlling Interest
Page 86
Beginning of year
Net transactions with NCI
Purchase of additional shares GENACTT (ii)
Investment in GENACBB (iii)
Dividend
NCI share of total comprehensive income
2021
$’000
398,489
2020
$’000
473,547
-
-
-
-
(106,008)
292,481
(41,030)
40,874
(156)
(55,765)
(19,137)
398,489
(i) All subsidiary undertakings are included in the consolidation. The proportion of the voting rights in the
subsidiary undertakings held directly by the parent company do not differ from the proportion of ordinary
shares held.
(ii) In June 2020, the Group acquired an additional 10% of the issued shares of GENACTT for $46,676,000.
Immediately prior to the purchase, the carrying value amount of the existing non-controlling interest in
GENACTT was $41,030,000. The Group recognised a decrease in NCI of $41,030,000 and a decrease in
equity attributable to owners of the parent of $5,646,000.
(iii) This represented the NCI’s capital contribution of 20% in GENACBB.
Summarised financial information on subsidiary with material non-controlling interests.
General Accident Insurance Company(Trinidad) Limited (formerly Motor One Limited)
(a) Summarised Statement of Financial Position
Assets
Liabilities
Net Assets
(b) Summarised Statement of Comprehensive Income
Revenue
Loss before taxation
Taxation
Loss after tax
Other comprehensive income
Total Comprehensive Income
2021
$’000
2020
$’000
2,297,978
2,507,000
(1,910,513)
(1,725,000)
387,465
782,000
2021
$’000
687,882
(237,829)
(6,550)
(244,379)
(6,206)
(250,585)
2020
$’000
477,023
(121,424)
(4,297)
(125,721)
78,707
(47,014)
Total comprehensive income allocated to non-controlling interest
(87,704)
(14,307)
151 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
38. Non-Controlling Interest (Continued)
General Accident Insurance Company (Trinidad) Limited (formerly Motor One Limited)
(c) Summarised Statement of Cash Flows
Page 87
Cash flows from operating activities
Cash generated from operations
Income taxes
Net cash used in operating activities
Net cash generated from investing activities
Net cash used in financing activites
Net increase in cash and cash equivalents
Cash and cash equivalents at acquisition date
Exchange gains on cash and cash equivalents
2021
$’000
2020
$’000
(190,931)
(10,694)
(201,625)
790,787
(164,935)
424,227
152,566
2,623
579,416
(774,569)
28,101
(746,468)
957,695
(1,215)
210,012
39,344
(10,233)
239,123
Summarised financial information on subsidiary with material non-controlling interests.
General Accident Insurance Company (Barbados) Limited
(a)
Summarised Statement of Financial Position
Assets
Liabilities
Net Assets
(b) Summarised Statement of Comprehensive Income
Revenue
Loss before taxation
Taxation
Loss after tax
Other comprehensive income
Total Comprehensive Income
2021
$’000
$’000
444,439
(355,738)
88,701
2021
$’000
361,396
(99,909)
-
(99,909)
8,390
(91,519)
2020
$’000
$’000
275,091
(94,873)
180,218
2020
$’000
65,405
(32,311)
(1,870)
(34,181)
10,032
(24,149)
Total comprehensive income allocated to non-controlling interest
(18,304)
(4,830)
151 2021 | GENERAL ACCIDENT ANNUAL REPORT
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General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2021
(expressed in Jamaican dollars unless otherwise indicated)
Page 88
38. Non-Controlling Interest (Continued)
General Accident Insurance Company (Barbados) Limited
(c) Summarised Statement of Cash Flows
Cash flows from operating activities
Cash generated from operations
Income taxes
Net cash generated from operating activities
Net cash generated from investing activities
Net cash generated by financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at acquisition date
Exchange gains on cash and cash equivalents
2021
$’000
2021
$’000
55,577
-
55,577
(44,669)
(8,842)
2,066
150,032
28,047
180,145
(7,908)
(1,845)
(9,753)
(54,009)
205,251
141,489
-
8,543
150,032
39. Pension Scheme
Employees participate in a defined contribution pension scheme operated by a related company, T. Geddes Grant
(Distributors) Limited. The scheme is open to all permanent employees, as well as the employees of certain related
companies. The scheme is funded by employees’ compulsory contribution of 5% of earnings and voluntary
contributions up to a further 5%, as well as employer’s contribution of 5% of employees’ earnings. The scheme is
valued triennially by independent actuaries. The results of the most recent actuarial valuation, as at
31 December 2018, indicated that the scheme was adequately funded at that date.
Pension contributions for the period totalled $14,980,000 (2020 – $13,699,000) and are included in staff costs
(Note 14).
40. Contingency
The Group is involved in certain legal proceedings incidental to the normal conduct of business. Management
believes that none of these legal proceedings, individually or in the aggregate, will have a material effect on the
Group.
41. Impact of COVID-19
The outbreak of the novel Coronavirus (COVID-19) became a pandemic in March 2021 and has adversely affected
the global economy and way of life. The continuous impact of COVID-19 on the company’s operations and future
financial performance are reviewed periodically by the Board and Management with mitigating strategies
implemented to reduce any negative effects. The pandemic and the measures to control its human impact have
resulted in disruptions to the Jamaican economic activities, business operations and to the insurance industry.
The company continues to review its credit and financial risks while continuing to contain costs and manage cash
flows. Management has considered the consequences of COVID-19 pandemic as well as other events and
conditions, and it has determined that they do not create additional material uncertainty that casts significant doubt
upon the entity’s ability to continue as a going concern.
153 2021 | GENERAL ACCIDENT ANNUAL REPORT
2021 | GENERAL ACCIDENT ANNUAL REPORT 154
FORM OF PROXY
I/We __________________________________________________________________________________________________
of _____________________________________________________________________________________________________
being a shareholder(s) of the above-named Company, hereby appoint:
_______________________________________________________________________________________________________
of _____________________________________________________________________________________________________
or failing him ___________________________________________________________________________________________
of _____________________________________________________________________________________________________
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 14, 2022, 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
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
For ££ Against ££
Company for the year ended December 31, 2021.
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 P. B. Scott as a Director of the Board of the Company. For ££ Against ££
3. (b) To re-appoint Melanie Subratie as a Director of the Board of the Company.
For ££ Against ££
3. (c) To re-appoint Christopher Nakash 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 amount of interim dividends declared by the Board during the
For ££ Against ££
financial year ended 31st December 2021, being $196,700,624 or 19.074 cent per
ordinary share, as the final dividend for the year..
Signed this ____________________ day of _____________________ 2022:
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)
153 2021 | GENERAL ACCIDENT ANNUAL REPORT
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