Generac Holdings Inc Annual Report 2022

Plain-text annual report

2 2022 | GENERAL ACCIDENT ANNUAL REPORT 2022 | GENERAL ACCIDENT ANNUAL REPORT 3 TABLE OF CONTENTS GENERAL ACCIDENT AT A GLANCE Our Purpose, Our Vision Corporate Structure Key Financial Highlights Consistent Shareholders Dividend Consolidated Loss Ratio Over Five Years Consolidated Combined Ratios Consolidated Portfolio Composition 10 - Year Statistical Review Our Strategic Focus Our Brand Promise 8 10 11 14 16 17 NOTICE OF ANNUAL GENERAL MEETING 20 Notice of Annual General Meeting CORPORATE GOVERNANCE Chairman’s Report Directors’ Report Directors’ Proﬁles Corporate Governance Report 25 26 28 32 LEADERSHIP AND OPERATIONS Senior Leadership Team Management Team Management Discussion and Analysis Risk Management Risk Committee 36 38 42 47 48 DISCLOSURE OF SHAREHOLDINGS 60 61 62 Top 10 Shareholders Shareholdings of Directors and their Connected Parties Shareholdings of Management Team CORPORATE DATA 66 67 Company Proﬁle Contact Information • Jamaica - Kingston - Montego Bay • Trinidad • Barbados FINANCIAL STATEMENTS 70 72 78 79 80 81 83 84 85 86 88 Actuary’s Report Independent Auditor’s Report to the Members 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 CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility Employee Engagement 52 56 PROXY FORM 4 2022 | GENERAL ACCIDENT ANNUAL REPORT GENERAL ACCIDENT AT A GLANCE Our Purpose, Our Vision Corporate Structure Key Financial Highlights Consistent Shareholders Dividend Consolidated Loss Ratio Over Five Years Consolidated Combined Ratios Consolidated Portfolio Composition 10 - Year Statistical Review Our Strategic Focus Our Brand Promise NOTICE OF ANNUAL GENERAL MEETING Notice of Annual General Meeting 20 CORPORATE GOVERNANCE Chairman’s Report Directors’ Report Directors’ Proﬁles Corporate Governance Report LEADERSHIP AND OPERATIONS Senior Leadership Team Management Team Management Discussion and Analysis Risk Management Risk Committee 8 10 11 14 16 17 25 26 28 32 36 38 42 47 48 DISCLOSURE OF SHAREHOLDINGS 60 61 62 Top 10 Shareholders Shareholdings of Directors and their Connected Parties Shareholdings of Management Team CORPORATE DATA 66 67 Company Proﬁle Contact Information • Jamaica - Kingston - Montego Bay • Trinidad • Barbados FINANCIAL STATEMENTS 70 72 78 79 80 81 83 84 85 86 88 Actuary’s Report Independent Auditor’s Report to the Members 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 CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility Employee Engagement 52 56 PROXY FORM 2022 | GENERAL ACCIDENT ANNUAL REPORT 5 GENERAL ACCIDENT AT A GLANCE OUR PURPOSE General Accident Insurance Company (GenAc) 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. 8 2022 | GENERAL ACCIDENT ANNUAL REPORT 2022 | GENERAL ACCIDENT ANNUAL REPORT 9 CORPORATE STRUCTURE JAMAICA BARBADOS TRINIDAD Revenue J$ 13.84B Revenue J$ 394.77M Revenue J$ 948.12M Growth Percentage 6.7% Growth Percentage 19.4% Growth Percentage 44.8% Net Assets J$ 2.99B 193 Employees Net Assets J$ 60.45M Net Assets J$ 634.99M 8 Employees 58 Employees 10 2022 | GENERAL ACCIDENT ANNUAL REPORT KEY FINANCIAL HIGHLIGHTS CONSISTENT SHAREHOLDER DIVIDEND CONSISTENT SHAREHOLDER DIVIDEND 48% 62% 54% 57% 52% 68% 50% 50% 50% 50% $0.20 $0.17 $0.17 $0.19 $0.15 $0.14 $0.22 $0.24 $0.19 $0.14 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Dividend as percentage of profit Dividend per Share 100 75 50 0 2022 | GENERAL ACCIDENT ANNUAL REPORT 11 KEY FINANCIAL HIGHLIGHTS CONSOLIDATED LOSS RATIO OVER FIVE YEARS CONSOLIDATED COMBINED RATIO 12 2022 | GENERAL ACCIDENT ANNUAL REPORT CONSOLIDATED PORTFOLIO COMPOSITION 2022 | GENERAL ACCIDENT ANNUAL REPORT 13 10 - YEAR STATISTICAL REVIEW 14 2022 | GENERAL ACCIDENT ANNUAL REPORT EMPLOYEEGROSS WRITTEN PREMIUMSCLAIMS INCURRED UNDERWRITING PROFIT/(LOSS)PROFIT BEFORE TAXPROFIT AFTER TAXCASH DIVIDENDSSHAREHOLDER’S EQUITYLOSS RATIOINVESTMENT RETURNRETURN ON EQUITYDIVIDEND YIELD ON AVERAGE EQUITYNET WORTH MOVEMENTP/E RATIOCLOSING STOCK PRICEDIVIDEND PAYOUT RATIO 2021202220202019201820172016201520142013$'00012,044,9901,816,926 1,445259,536193,812222,6682,974,86666%6%6%7%-1%25.86.1950%13,959,8071,751,36080,317259,695149,236196,7012,921,96458%5%5%7%-2%23.65.950%15,114,2091,508,337386,614708,167597,230250,5733,170,06045%10%20%8%8%8.34.4150%$'000$'000$'00013220522925910,727,8281,205,328442,136770,154651,558142,6843,003,56554%6%32%6%27%13.17.150%$'0001318,735,7971,023,022174,768352,569285,370150,0472,056,61263%5%15%8%6%12.63.5468%$'000$'0001117,106,2541,087,590-35,532236,077221,236200,0011,937,77182%11%11%10%-1%13.32.852%915,649,097746,07345,609404,243386,879175,0031,964,42066%11%22%9%11%82.9957%$'000906,112,355696,480114,656303,448304,418172,2191,775,29762%8%19%10%12%6.82.0554%$'000785,072,375678,558101,941319,965320,078203,8781,579,38263%10%22%13%8%5.61.7562%$'000834,479,755646,79158,503323,702327,914140,0251,456,94465%14%25%10%13%5.61.848% 2022 | GENERAL ACCIDENT ANNUAL REPORT 15 EMPLOYEEGROSS WRITTEN PREMIUMSCLAIMS INCURRED UNDERWRITING PROFIT/(LOSS)PROFIT BEFORE TAXPROFIT AFTER TAXCASH DIVIDENDSSHAREHOLDER’S EQUITYLOSS RATIOINVESTMENT RETURNRETURN ON EQUITYDIVIDEND YIELD ON AVERAGE EQUITYNET WORTH MOVEMENTP/E RATIOCLOSING STOCK PRICEDIVIDEND PAYOUT RATIO 2021202220202019201820172016201520142013$'00012,044,9901,816,926 1,445259,536193,812222,6682,974,86666%6%6%7%-1%25.86.1950%13,959,8071,751,36080,317259,695149,236196,7012,921,96458%5%5%7%-2%23.65.950%15,114,2091,508,337386,614708,167597,230250,5733,170,06045%10%20%8%8%8.34.4150%$'000$'000$'00013220522925910,727,8281,205,328442,136770,154651,558142,6843,003,56554%6%32%6%27%13.17.150%$'0001318,735,7971,023,022174,768352,569285,370150,0472,056,61263%5%15%8%6%12.63.5468%$'000$'0001117,106,2541,087,590-35,532236,077221,236200,0011,937,77182%11%11%10%-1%13.32.852%915,649,097746,07345,609404,243386,879175,0031,964,42066%11%22%9%11%82.9957%$'000906,112,355696,480114,656303,448304,418172,2191,775,29762%8%19%10%12%6.82.0554%$'000785,072,375678,558101,941319,965320,078203,8781,579,38263%10%22%13%8%5.61.7562%$'000834,479,755646,79158,503323,702327,914140,0251,456,94465%14%25%10%13%5.61.848%OUR STRATEGIC FOCUS VALUE CREATION AND LONG-TERM SUSTAINABILITY GenAc provides risk transfer mechanisms to our customers, guided by 41 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 DEVELOPING THE GENAC TEAM 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. 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. 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. 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. 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. 16 2022 | GENERAL ACCIDENT ANNUAL REPORT 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. OUR BRAND PROMISE SO LI D F OUNDA TI O N We maintain financial strength to ensure consistent profitable growth. ER F P O R MANC E We strive for service that exceeds customer expectations. I N N OVATIO N We are creative, willing to make bold decisions and challenge the status quo. I N T EGRIT Y We are honest and fair in all our actions. R A N D PROMIS E B 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. S P O NSIBILIT Y E R We have a strong sense of responsibility towards our customers, society, the environment and each other. 2022 | GENERAL ACCIDENT ANNUAL REPORT 17 ANNUAL GENERAL MEETING NOTICE OF 18 2022 | GENERAL ACCIDENT ANNUAL REPORT NOTICE OF ANNUAL GENERAL MEETING 2022 | GENERAL ACCIDENT ANNUAL REPORT 19 NOTICE OF ANNUAL GENERAL MEETING GENERAL ACCIDENT INSURANCE COMPANY (JAMAICA) LIMITED NOTICE IS HEREBY GIVEN THAT the annual General Meeting of General Accident Insurance Company (Jamaica) Limited (the “Company”) will be held at 9:00 am on September 15, 2023 at 58 Half Way Tree Road, Kingston 10, for shareholders to consider and, if thought fit, to pass the following resolutions: ORDINARY RESOLUTIONS 1. 2. 3. To receive the report of the Board of Directors and the Audited Accounts of the Company for the financial year ended December 31, 2022. To authorize the Board of Directors to reappoint PricewaterhouseCoopers as the auditors of the Company and to fix their remuneration. To re-appoint the following Directors of the Board who have resigned by rotation in accordance with the Article of Incorporation of the Company and, being eligible, have consented to act on reappointment: (a) To reappoint Jennifer Scott as a Director of the Board of the Company. (b) To reappoint Nicholas Scott as a Director of the Board of the Company. (c) To reappoint Brian Jardim as a Director of the Board of the Company. 4. To authorize the Board of Directors to fix the remuneration of the Directors. 5. To approve the aggregate amount of interim dividends declared by the Board during the financial year ended December 31, 2022 being $250,573,125.12 or 24.298 cents per ordinary share, as the final dividend for that year. Dated this the 30th day of April, 2023 by Order of the Board Lesley Miller CORPORATE SECRETARY 20 2022 | GENERAL ACCIDENT ANNUAL REPORT CORPORATE GOVERNANCE 22 2022 | GENERAL ACCIDENT ANNUAL REPORT CORPORATE GOVERNANCE 2022 | GENERAL ACCIDENT ANNUAL REPORT 23 CHAIRMAN’S REPORT 24 2022 | GENERAL ACCIDENT ANNUAL REPORT In 2022, General Accident continued 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 achieved a record financial performance in 2022, recording the highest gross written premiums in our history. We achieved gross written premiums of $15.1 billion, an to report that in 2022 we achieved profitability in increase of $1.2 billion or 8% over 2021. We achieved Trinidad. The fact that we were able to achieve profit before tax of $708.2 million, representing profitability within our first 3 years of operation in an increase of $448.5 million or 173% over 2021. Trinidad, is a testament to our team and our strategy. Further, General Accident produced a 22% return on equity and distributed $250.6 million of dividends to our shareholders. General Accident continued to build a leading regional general insurance company, and in 2022, we made noteworthy progress. In Jamaica, we solidified our position as the largest underwriter of general insurance risks, with gross written premiums of Our growing presence in all three of the Caribbean’s largest insurance markets diversifies our underwriting risk and creates economies of scale. This scale allows General Accident to efficiently invest, develop and deploy digital insurance solutions. $13.8 billion, an increase of $0.9 billion over 2021. The year ahead will be categorized by tightening In Trinidad, we grew gross written premiums to conditions in insurance markets globally. The Caribbean $948.1 million, an increase of $293.3 million or 45% markets in which we operate will be no exception. over 2021, while in Barbados, we grew gross written General Accident has fostered deep relationships with premiums to $394.8 million, an increase of $64.1 our reinsurers over decades and has consistently million or 19% over 2021. delivered on our promises to these key partners. This commitment differentiates General Accident In 2022, General Accident’s Jamaican property and in tough market conditions. We’re pleased to report motor insurance operations had another year of that General Accident not only continued to receive strong premium growth and profitability. This is a support from its reinsurers but has been one of the testament to our prudent underwriting policies and few regional insurers to increase its capacity. This is strong reinsurance program. a validation of our strategy and is very positive for our shareholders. However, it is also important for General Accident’s consolidated profits in 2022 our clients and the countries in which we operate reflect our investments in our emerging subsidiaries since in many instances General Accident will be in Trinidad and Barbados. While these investments critical to ensuring that adequate insurance coverage have had a short-term impact on our financial results, is available in Jamaica, Trinidad and Barbados. over the long run they will create considerable value for General Accident. Consequently, we are pleased Sincerely, Paul B. Scott CHAIRMAN 2022 | GENERAL ACCIDENT ANNUAL REPORT 25 DIRECTORS’ REPORT The Directors are pleased to present their report for General Accident Insurance Company (Jamaica) Limited for the financial year ended December 31, 2022. FINANCIAL RESULTS The Statement of Comprehensive Income for the Group shows pre-tax profits for the year of $708.2 million, taxation of $110.9 million and a net profit after tax of $597.2 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, 2022, are: P.B. Scott, Melanie Subratie, Sharon Donaldson, Gregory Foster, Lesley Miller, 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: Jennifer Scott, Nicholas Scott and Brian Jardim 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 24.298 cents per share paid on December 15, 2022, is proposed to be the final dividend in respect of the financial year ended December 31, 2022. 26 2022 | GENERAL ACCIDENT ANNUAL REPORT DIRECTORS’ PROFILES CHAIRMAN MANAGING DIRECTOR Paul B. Scott (appointed November 1998) Sharon Donaldson (appointed March 2008) PB Scott is the Chairman, CEO and principal shareholder of the Musson Group. He joined the group in 1994, became CEO in 2004, and in 2009 was appointed Chairman of the Board. He is responsible for the strategic direction, performance and overall operations of the Musson Group and all of its subsidiaries, including the Facey Group, PBS Group, Seprod, T. Geddes Grant Distributors Ltd. and General Accident Insurance Company Ltd. among others. In addition to his responsibilities at Musson he serves on many public boards and commissions. He is a trustee of the American International School of Jamaica and currently is Chairman of the Development Bank of Jamaica. He is a past President of the Private Sector Organization of Jamaica. Sharon Donaldson has been the Managing Director of the Company since 2008. She holds a Bachelor of Laws (LLB) 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 Charted Accountants of Jamaica and an Attorney-at-Law. Ms. Donaldson is a member of the board of the Jamaica Environment Trust (JET). She is the treasurer for the Council of the Institute of Chartered Accountants of Jamaica and heads the committee of Professional Accountants in Business and Ms. Donaldson serves as director on several boards including Musson (Jamaica) Limited, the parent company to General Accident. She is the current chairman of the Forestry Department Advisory Board, a director on the boards of Eppley Limited, 138 Student Living Limited, Paramount Trading Jamaica Limited, Canopy Insurance among others. Ms. Donaldson was a nominee for the Jamaica Observer Business Leader of the Year award in 2016. 28 2022 | GENERAL ACCIDENT ANNUAL REPORT EXECUTIVE DIRECTOR DEPUTY CHAIRMAN INDEPENDENT NON EXECUTIVE DIRECTOR Gregory St. Hugh Foster (appointed April 2018) Melanie Subratie (appointed March 2002) Brian Jardim (appointed August 2017) 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. 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. 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. 2022 | GENERAL ACCIDENT ANNUAL REPORT 29 DIRECTORS’ PROFILES DIRECTORS’ PROFILES NON EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR & COMPANY SECRETARY INDEPENDENT NON EXECUTIVE DIRECTOR Nicholas A. Scott (appointed July 2011) Lesley Miller (appointed April 2022) Christopher Nakash (appointed December 2006) 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. 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®). 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. 30 2022 | GENERAL ACCIDENT ANNUAL REPORT INDEPENDENT NON EXECUTIVE DIRECTOR NON EXECUTIVE DIRECTOR INDEPENDENT NON EXECUTIVE DIRECTOR Duncan Stewart (appointed August 2011) Jennifer Scott (appointed December 2009) Matthew Lyn (appointed July 2015) 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. Jennifer Scott is a non-executive Director of the Company. Mrs. Scott holds a B.Sc. (Hons) in Psychology from Newcastle University, United Kingdom, a Graduate Diploma in Legal Studies from Keele University, UK, and Certificate of Legal Practice from the College of Law, London. She was admitted as a Solicitor of Supreme Court of England and Wales. She attended Norman Manley Law School, and was admitted as an Attorney-at-Law of the Supreme Court of Jamaica in 2014. She is a consultant at Clinton Hart & Co., Attorneys-at-Law, specialising in financial securities and corporate law. 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. 2022 | GENERAL ACCIDENT ANNUAL REPORT 31 CORPORATE GOVERNANCE REPORT 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 Caribbean region. The framework is documented in our Corporate Governance Policy, wherein prescribed practices conform with global best practices, the Private Sector Organization of Jamaica’s Code on Corporate Governance and the Jamaica Stock Exchange’s Corporate Governance Guidelines. CORPORATE GOVERNANCE FRAMEWORK 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 the growth and profitability of the business while providing an equitable return to the shareholders. General Meeting of Shareholders Board of Directors Compensation Committee Conduct Review Committee Audit Committee Managing Director External Audit Senior Management 32 2022 | GENERAL ACCIDENT ANNUAL REPORT Our Directors and Committees are aligned with our strategic and corporate objectives and are tasked with monitoring progress and ensuring that the efforts of all stakeholders support those objectives. of interest and the disclosures around any such conflicts. The Conduct Review Committee is comprised of five (5) non-executive directors and one (1) executive director. The Committee meets at least three (3) times a year. BOARD OF DIRECTORS The members of the Board of Directors and those entrusted with administering our Corporate Governance Framework embody diversity, experience, and proven excellence in their fields. Comprised of eleven (11) members, a non-executive Chairman, seven (7) non-executive directors and three (3) executive directors, Board members provide balanced decision-making and independence. THE COMPENSATION COMMITTEE The Compensation Committee is responsible for oversight of executive remuneration packages. These packages are designed to reward performance and incentivise growth and are driven by the organisation’s core objectives and in alignment with necessary risk considerations. The Committee meets at least four (4) times a year. CONDUCT REVIEW COMMITTEE The Conduct Review Committee has the responsibility for oversight of the Company’s policies and procedures to ensure that it conducts its affairs responsibly and in keeping with our values and the broad requirements of the Regulators. This committee is tasked with the prevention, identification and management of conflicts AUDIT COMMITTEE The Audit 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 four (4) non-executive directors and one (1) executive director. The Committee meets at least five (5) times during the year. INVESTMENT AND LOAN COMMITTEE The Investment and Loan Committee is responsible for driving the Group’s investment strategy and ensuring that it 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 aligns with the credit risk appetite of the Company. The Investment and Loan Committee is comprised of (4) non-executive directors and two (2) executive directors. The Committee meets at least four (4) times for the year. The Corporate Governance Guidelines (CGG) for General Accident Insurance Company Jamaica Limited are available on our website at https://www.genac.com 2022 | GENERAL ACCIDENT ANNUAL REPORT 33 LEADERSHIP & OPERATIONS 34 2022 | GENERAL ACCIDENT ANNUAL REPORT LEADERSHIP & OPERATIONS 2022 | GENERAL ACCIDENT ANNUAL REPORT 35 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. Mayers has tutored various subjects at the Insurance Institute of Barbados and has served as Director of several companies in the public and private sector. 36 2022 | GENERAL ACCIDENT ANNUAL REPORT 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 General Manager with responsibility for the Autosmart Business Unit. Janille holds Chartered Insurance Professional (CIP) Designation with the Insurance Institute of Canada. 2022 | GENERAL ACCIDENT ANNUAL REPORT 37 MANAGEMENT TEAM CAREEN NOLAN Head of Property & Casualty Division Jamaica ANGELLA REYNOLDS Senior Risk & Reinsurance Manager Jamaica TANYA OAKLEY Business Intelligence Manager Jamaica CAROL BARNETT Claims Manager Jamaica PETAGAYE MCCOOK Legal Services Manager Jamaica JANETTE COLE-SMITH Finance & Compliance Manager Jamaica JOAN MCLEGGON Chief Human Resources Officer Jamaica DOUGLAS HAYDEN Information Technology Manager Jamaica CHERYLL HENRY Operations & Facilities Manager Jamaica 38 2022 | GENERAL ACCIDENT ANNUAL REPORT MANAGEMENT TEAM NATASHA PETTIER CEO 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 2022 | GENERAL ACCIDENT ANNUAL REPORT 39 40 2022 | GENERAL ACCIDENT ANNUAL REPORT MANAGEMENT DISCUSSION & ANALYSIS 2022 | GENERAL ACCIDENT ANNUAL REPORT 41 MANAGEMENT DISCUSSION & ANALYSIS attributable to our increased broker penetration and the expansion of our agent network. Although group business supported our portfolio, personal lines insurance products, particularly motor insurance products, exceeded our budgeted expectations, with $234.9 million in gross written premiums. The company performed better than anticipated through careful cost management. As a result, our 2022 net loss was $18.7 million, down significantly from our 2021 net loss of $99.9 million. General Accident Barbados continues to prudently increase its staff complement and improve its operating efficiency by digitising its processes. PROFITABILITY In 2022, General Accident continued to execute its strategy of building a leading regional general insurance company. Our exceptional team, relationships, technology and brand allowed General Accident to deliver a record financial performance. The General Accident Group produced record financial performance in 2022, achieving the highest gross written premiums in our history. We achieved gross written premiums of $15.1 billion, an increase of $1.2 billion or 8% over 2021, and profit before tax of $708.2 million, representing an increase of 173% over 2021. Further, General Accident produced a 22% return on equity and distributed $250.6 million of dividends to our shareholders. General Accident Jamaica maintained its position as the largest underwriter of general insurance risks, with gross written premiums of $13.8 billion, an increase of $0.9 billion over 2021, underwriting profit of $165.1 million, and net profit of $405.1 million. General Accident Trinidad achieved profitability for the first time. Given that we only began operations in Trinidad less than three years ago, in 2019, it is truly a testament to our team and our execution that we were able to achieve this feat so soon. This was a direct result of our dedicated and committed staff, our improved technology, our strong relationships with supportive business partners, and our strong corporate governance. General Accident Trinidad produced gross written premiums of $948.1 million, an increase of $293.3 million or 45% over 2021. We are poised for continued growth, as we build upon the relationships we have forged, expand our agency and sales network, and leverage our investments in technology. General Accident Barbados continued to grow in 2022. We achieved gross written premiums of $394.8 million, an increase of $64.1 million or 19% over 2021. This growth is largely 42 2022 | GENERAL ACCIDENT ANNUAL REPORT MANAGEMENT DISCUSSION & ANALYSIS CONT’D GROUP GROSS PREMIUM COMPOSITION 2022 | GENERAL ACCIDENT ANNUAL REPORT 43 MANAGEMENT DISCUSSION & ANALYSIS CONT’D FINANCIAL HIGHLIGHTS GENERAL ACCIDENT GROUP Consistent premium growth Gross written premiums of $15.1 billion Profit for the year of $597.2 million Book value of $3.2 billion Total assets of $12.7 billion Earnings per share of $0.53 Profit attributable to shareholders was $543.8 Million in 2022. We paid dividends amounting to $250.6 million in the year under review. We are delighted to report an increased return on equity (ROE) of 20% for the year 2022, an improved performance over 2021 and 2022 when the company experienced increased expenses related to the acquisition of two regional entities, as well as implementing safety measures, maintaining business continuity, and adopting remote work setups made necessary by the Covid-19 pandemic. Following the first full year of full integration of the regional companies, we are back to achieving double-digit ROE. GROUP UNDERWRITING PROFIT $’000 44 2022 | GENERAL ACCIDENT ANNUAL REPORT MANAGEMENT DISCUSSION & ANALYSIS CONT’D MANAGEMENT DISCUSSION & ANALYSIS CONT’D GROUP NET PROFIT $’000 INVESTMENT INCOME Investment income increased by 93% to $436.4 million, up from $226.5 million in 2021. This increase was driven by taking advantage of a high-return investment coupled with increased investment yields during the year. 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 2022. FINANCIAL STRENGTH LOOKING AHEAD General Accident Group is well capitalized with an equity book value of $3.2 billion. This provides stability to weather any potential economic challenges of 2023. Total assets increased by 1% to $12.7 billion, up from $12.5 billion in 2021. CAPITAL MANAGEMENT General Accident Group allocates its capital to maximize 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 General Accident’s presence in all three of the Caribbean’s largest 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 digitization made in 2020, 2021 and 2022. This positions us well for increased operating efficiency in 2023. For 2023, General Accident remains focused on solidifying our market leadership in Jamaica, growing our business in Trinidad and Barbados, and completing our digital 2022 | GENERAL ACCIDENT ANNUAL REPORT 45 MANAGEMENT DISCUSSION & ANALYSIS CONT’D transformation. We will continue to leverage our market reach, digital capabilities, and financial strength to capitalize 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 digitized, customer-focused marketplace. We are well positioned to achieve robust financial performance and satisfied policyholders. I would like to extend sincere thanks to 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 success of the company. To our brokers and insureds, thank you for the confidence you have placed in us. We take our brand promise of excellence seriously and will continue to deliver value to our customers, employees, business partners and shareholders. Sharon Donaldson CEO & Managing Director 46 2022 | 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. Inadequate premiums. • The Company adopts prudent reserve practices as we maintain reserves equal to our estimated ultimate liability losses and loss adjustment expenses. • We ensure risks are priced appropriately by regular review of underwriting results. • We practice eﬀective diversiﬁcation of risks. � LIQUIDITY RISK The risk of insuﬃcient cash ﬂows to meet settlement obligations as they fall due. • We use cash ﬂow forecasting. • We maintain suﬃcient liquid assets at required levels to meet our obligations at all times. � OPERATIONAL RISK The risk of failure of internal processes and systems and loss of or inadequate human resources. • We carry out frequent review of internal processes to identify vulnerabilities. • We have in place a structured programme for building our staﬀ members capacity. � REGULATORY CAPITAL The risk of not meeting regulatory benchmarks. • We carry out frequent modelling of the company’s capital components to ensure transaction decisions are made in such a way to avoid a drag on capital ratio. � MARKET RISK The risk of economic losses on our investment portfolio resulting from price changes in capital markets. • A diversiﬁed portfolio lies at the heart of our strategy. Investment duration and currency are managed to avoid any mismatch of assets and liabilities, whilst earning the maximum return at an acceptable level of risk. • We use appropriate limits and early warning ratios in our asset liability management to manage market risk. � CREDIT RISK The risk arising from the likely default as a result of changes in the ﬁnancial position of a counterparty. • We manage credit risk by reviewing the balance sheet of counter parties in addition to using available market data to determine default probabilities. 2022 | GENERAL ACCIDENT ANNUAL REPORT 47 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. 48 2022 | GENERAL ACCIDENT ANNUAL REPORT 2022 | GENERAL ACCIDENT ANNUAL REPORT 49 50 2022 | GENERAL ACCIDENT ANNUAL REPORT CORPORATE SOCIAL RESPONSIBILITY 2022 | GENERAL ACCIDENT ANNUAL REPORT 51 CORPORATE SOCIAL RESPONSIBILITY As we began to emerge from the Covid-19 pandemic in Jamaica, 2022 saw a return to in-person interactions and the resumption of many of our long-standing commitments to education, health and wellness, and the natural environment. WORLD DOWN SYNDROME DAY In recognition of World Down Syndrome Day (March 21, 2022) and the hard work of the members of the Jamaica Down’s Syndrome Foundation, General Accident Jamaica donated $100,000 to support the outreach services provided by the organisation. Founder & chairperson Dr. Chairmaine Scott was elated to receive the much-needed funding. This donation highlights the Company’s continued commitment to promoting health and wellness among staff members and the wider community. The General Accident team embraced increased opportunities for community involvement and made special contributions to the youth of Jamaica. Here are the highlights: 52 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident’s Chief Information Officer (left) Lesley Miller and Marketing Associate Sha Vaughn Rattigan (right) make the $100,000 donation to Jamaica Down’s Syndrome Foundation members, In-house Counsellor Jennifer Anglin (second left) and Founder & Chairperson Dr. Chairmaine Scott (second right) in recognition of World Down Syndrome Day. BLOOD DRIVE The annual GenAc Blood Drive, held each year in June, recognises the life-saving gifts of blood on World Blood Donor Day (celebrated on June 14). The initiative, done in partnership with the National Blood Transfusion Service (Blood Bank) and Musson Foundation, aims to help replenish the Blood Bank’s resources. Blood Bank technicians were stationed at the General Accident offices at 58 Half-Way-Tree Road. At the end of the drive, 95 registered persons donated 62 units of blood. This year’s blood drive saw not only an uptick in participants but also an increased number of young participants. From the 62 units collected at the GenAc Blood Drive, the Blood Bank can save up to 186 lives. National Blood Transfusion Service Representative, Tanika Dewar- Taffe (standing left) explains the blood donation process to Musson Foundation Chairperson Melanie Subratie (standing middle) and General Accident Insurance Company (Jamaica) (GenAc) CEO Sharon Donaldson (right) while GenAc Motor Underwriting Supervisor Wendy Clarke-Gayle gives blood. National Blood Transfusion Service Blood Donor Organizer, Keishawna Pinnock (left) Chairman and CEO of the Musson Group, Paul B Scott (middle) and General Accident Chief Information Officer, Lesley Miller check in on first-time donor and Senior Property & Casualty Supervisor, Julette Fuller during the General Accident Blood Drive held on June 15 at the Company’s head office. General Accident staff member Kyle Lawrence, proudly displays his gift of life at the General Accident Blood Drive hosted at the Company’s head office in Kingston on June 15. 2022 | GENERAL ACCIDENT ANNUAL REPORT 53 CORPORATE SOCIAL RESPONSIBILITY CONT’D MAISIE GREEN LEARNING CENTRE The Company continued its support of the Maisie Green Learning Centre in 2022. For Labour Day, GenAc donated painting materials, which volunteers used to beautify the school environment for young learners. During the Christmas season, the newly formed GenAc choir lent their voices for the school’s first annual Carolling Service held in December. Students, parents, teachers and faculty members thoroughly enjoyed the lively performance. CUSTOMER APPRECIATION DAY To celebrate our customers’ continued patronage throughout the year, GenAc hosted a customer appreciation day on December 9, 2022, with an exciting day of activities and giveaways for customers. Customers visiting the Company’s Kingston office were met with musical entertainment, a photo booth, discounted insurance premiums and a chance to spin a wheel for other prizes. To complete the celebratory mood, Genac enlisted vibes master, Jenny Jenny, as host and staff members wore Christmas hats. The celebratory affair was well received by customers and culminated in the ultimate discount for one lucky customer. READ ACROSS JAMAICA DAY For National Read Across Jamaica Day 2022, GenAc welcomed the return of in-person sessions with the students of Dunrobin Primary School. The animated storytelling of the participating staff members was a joy for the students as each staff member took turns reading to the students. National Read Across Jamaica Day forms part of activities 54 2022 | GENERAL ACCIDENT ANNUAL REPORT Jamalda General Accident’s Business Development Officer Stanford-Brown(left) handed over paint and painting materials to the Principal of Maisie Green Learning Centre Charmaine Bennett on May 20, 2022 to aid with their Labour Day project on May 23, 2022. General Accident Choir performed a medley at the Maisie Green Learning Centre for the children at their Christmas party on December 14, 2022. Management trainee, Lashane Sinclair (left) presents a gift to a customer during GenAc’s customer appreciation day activity held at the Company’s head office in Kingston on December 9. Spin and win! Customer appreciation day host, Jenny Jenny explains the prizes to be won during the spin wheel giveaway to a customer. Support Technical General Accident Processor engages Trevaughn Davis students with questions during Genac’s National Read Across Jamaica Day session on May 3, 2022, at Dunrobin Primary School. General Accident Marketing Associate Sha Vaughn Rattigan reads SO WHO’S DR. RABBIT? by Patricia C McKissack to the students of Dunrobin Primary School during National Read Across Jamaica Day on May 3, 2022. CORPORATE SOCIAL RESPONSIBILITY CONT’D to mark Education Week. Under the 2022 theme ‘Revisiting the Foundation’, nine General Accident and Auto Smart staff members volunteered to fulfil the Read Across Jamaica Day mandate to promote the significance of reading and literacy locally. HOUR OF CODE In partnership with the Musson Foundation, GenAc representatives explored the basics of computer programming with 4th to 6th-grade students of Drews Avenue Primary School through the global Hour of Code initiative on December 10, part of the worldwide Hour of Code movement, which introduced tens of millions of students across the globe to Computer Science. The Hour of Code initiative is an annual learning event that takes place during Computer Science Education Week – December 5-11, 2022. General Accident Help Desk Technician Omaro Taylor coaches students of Drews Avenue Primary School in Kingston through an Hour of Code session on December 8, 2022. The Hour of Code is now an annual global learning event that takes place during Computer Science Education Week – December 5th-11th 2022. JAMAICA ENVIRONMENT TRUST (JET) GenAc continued its longstanding partnership with Jamaica Environment Trust (JET) in 2022. The Company donated $250,000 towards the operations of the local environment trust. GenAc stands in solidarity with JETt’s mandate to protect Jamaica’s natural resources using education, advocacy and the law to influence individual and organisational behaviour and public policy and practice. Each year the donation received facilitates the Trust’s projects and administrative functions. HONOURABLE MENTIONS During the year, General Accident also supported the following organisations and activities: • Jamaica Cancer Society (JCS) • UWI • Rusea’s Sports Department • Tornadoes Swim Club • Apostolic Church of Jamaica • Every Mikkle Foundation • Salvation Army CONCLUSION GenAc celebrates a successful year of commitment to national development. The Company’s efforts in promoting health and wellness, supporting education, sound environmental stewardship and giving back to the community through various partnerships and donations have positively impacted Jamaica. As the world continues to recover from the pandemic, GenAc is committed to continuing these and other initiatives to make a meaningful difference in the lives of Jamaicans. 2022 | GENERAL ACCIDENT ANNUAL REPORT 55 EMPLOYEE ENGAGEMENT Staff engagement is crucial for any successful organization, directly impacting employee motivation, job satisfaction, and ultimately, the success of the business. At GenAc, we regard staff engagement as fundamental. The advent of relaxed Covid 19 protocols in 2022 brought a resurgence of face-to-face interactions, allowing increased opportunities to foster a positive work environment and culture. INTERNATIONAL WOMEN’S DAY In honour of International Women’s Day (IWD), celebrated on March 8, under the theme, Break the bias GenAc executed a themed photo booth for staff to showcase their solidarity with the global initiative. With the same excitement of years past, staff members across all departments posed for photos using the year’s IWD pose (forming an X across the chest with both arms). Like a traditional photo booth, employees walked away with physical copies of their photos to mark the celebration. STAFF APPRECIATION EVENT Celebrating a year of hard work and progress, GenAc staff were treated to an exciting evening of festivities at the annual holiday staff party. To commence the celebrations, long-serving employees were acknowledged with an award ceremony which was later followed by a rousing sound-clash performance between the Claims and Registry department. In traditional holiday party fashion, the evening concluded with a dance party. DOMINO TOURNAMENT For the Jamaica Insurance Broker Association (JIBA) domino competition, the best General Accident domino players registered to challenge other insurance company representatives to a friendly domino tournament at Kingston Cricket Club on November 4, 2022. Two teams successfully represented GenAc, placing 2nd and 3rd in the overall competition. 56 2022 | GENERAL ACCIDENT ANNUAL REPORT EMPLOYEE ENGAGEMENT CONT’D MR & MS GENERAL ACCIDENT COMPETITION In August, GenAc hosted the inaugural Mr & Ms General Accident pageant. The competition, which saw staff members vie for prizes and the coveted title, was a welcomed activity that brought staff members across departments together. The victors were Kadeem Henry – Broker Services Associate (Mr General Accident) and Chanelle Messam – Junior Underwriting Associate (Ms General Accident). The two walked away with various prizes from the competition sponsors, Admark and Digicel. Prizes were also awarded to the competition’s first and second runners up. The Mr & Ms General Accident competition was the final event of a week of celebratory activities executed to honour staff for their hard work and commitment. Throughout the week, staff were treated to a smoothie morning, GenAc quiz competition (fun while learning) and giveaways. CONCLUSION GenAc is proud to celebrate the efforts of our employees. It continues to be our goal to pay attention to the well-being of our employees and create a work environment that encourages respect, trust and empathy. 2022 | GENERAL ACCIDENT ANNUAL REPORT 57 58 2022 | GENERAL ACCIDENT ANNUAL REPORT DISCLOSURE OF SHAREHOLDINGS 2022 | GENERAL ACCIDENT ANNUAL REPORT 59 General Accident Insurance Company Jamaica Limited Top Ten Shareholders As at 31 December 2022 SHAREHOLDER NO. OF UNITS PERCENTAGE DIRECTORS COMBINED HOLDING PERCENTAGE Musson Jamaica Ltd. 824,999,989 80.00 Musson Jamaica Ltd. 824,999,989 80.00 Mayberry Jamaican Equities Ltd. QWI Investments Ltd. 21,642,677 15,032,119 JCSD Trustee Services – Barita Unit Trust 14,384,371 Apex Pharmacy PAM – Pooled Equity Fund Lancedale Farquharson Mayberry Managed Clients Account Sagicor Select Funds Ltd Sharon Donaldson et al 10,000,000 9,343,293 7,632,582 6,340,154 5,066,798 4,424,011 2.10 1.46 1.39 0.97 0.91 0.74 0.61 0.49 0.43 Paul B. Scott Melanie Subratie Sharon Donaldson Junior Levine Gregory Foster Duncan Stewart Deborah Stewart Diana Stewart Christopher Nakash Nicholas Scott Matthew Lyn Jodi Lyn Lesley Miller Martin Miller et al 4,424,011 0.429 350,000 2,475,190 1,698,020 1,980,198 96,500 0.0340 0.2400 0.1647 0.1920 0.0094 360,746 0.0351 60 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica Limited Shareholdings of Directors and their Connected Parties As at 31 December 2022 DIRECTORS COMBINED HOLDING PERCENTAGE Musson Jamaica Ltd. 824,999,989 80.00 Paul B. Scott Melanie Subratie Sharon Donaldson Junior Levine Gregory Foster Duncan Stewart Deborah Stewart Diana Stewart Christopher Nakash Nicholas Scott Matthew Lyn Jodi Lyn Lesley Miller Martin Miller et al 4,424,011 0.429 350,000 2,475,190 1,698,020 1,980,198 96,500 0.0340 0.2400 0.1647 0.1920 0.0094 360,746 0.0351 2022 | GENERAL ACCIDENT ANNUAL REPORT 61 General Accident Insurance Company Jamaica Limited Shareholdings of Management Team As at 31 December 2022 MANAGER COMBINED HOLDING PERCENTAGE Michelle Robinson Cheryll Henry Jamalda Stanford Janille Jarrett 780,000 159,445 92,857 25,000 0.0758 0.0155 0.0090 0.0024 62 2022 | GENERAL ACCIDENT ANNUAL REPORT 64 2022 | GENERAL ACCIDENT ANNUAL REPORT CORPORATE DATA 2022 | GENERAL ACCIDENT ANNUAL REPORT 65 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 • Sagicor 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 66 2022 | GENERAL ACCIDENT ANNUAL REPORT 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 AutoSmart Insurance Kingston & St. Andrew 58 Half Way Tree Road, Kingston 10 Telephone: (876) 632-8260-2 Email: info@autosmartja.com TRINIDAD General Accident Insurance Company Trinidad & 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 2022 | GENERAL ACCIDENT ANNUAL REPORT 67 68 2022 | GENERAL ACCIDENT ANNUAL REPORT GENERAL ACCIDENT INSURANCE COMPANY JAMAICA LIMITED 31 December 2022 FINANCIAL STATEMENTS 70 72 78 79 80 Actuary’s Report Independent Auditor’s Report to the Members Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity 81 - 82 Consolidated statement of cash flows 83 84 85 Company statement of comprehensive income Company statement of financial position Company statement of changes in equity 86 - 87 Company statement of cash flows 88 - 168 Notes to the financial statements 2022 | GENERAL ACCIDENT ANNUAL REPORT 69 70 2022 | GENERAL ACCIDENT ANNUAL REPORT 2022 | GENERAL ACCIDENT ANNUAL REPORT 71 72 2022 | GENERAL ACCIDENT ANNUAL REPORT 2022 | GENERAL ACCIDENT ANNUAL REPORT 73 74 2022 | GENERAL ACCIDENT ANNUAL REPORT 2022 | GENERAL ACCIDENT ANNUAL REPORT 75 76 2022 | GENERAL ACCIDENT ANNUAL REPORT 2022 | GENERAL ACCIDENT ANNUAL REPORT 77 78 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedConsolidated Statement of Comprehensive IncomeYear ended 31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 79 General Accident Insurance Company Jamaica LimitedConsolidated Statement of Financial Position31 December 2022(expressed in Jamaican dollars unless otherwise indicated)General Accident Insurance Company Jamaica Limited Consolidated Statement of Changes in Equity Year ended 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 80 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica Limited Consolidated Statement of Cash Flows Year ended 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 81 General Accident Insurance Company Jamaica Limited Consolidated Statement of Cash Flows Year ended 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 82 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica Limited Company Statement of Comprehensive Income Year ended 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 83 84 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedCompany Statement of Financial Position31 December 2022(expressed in Jamaican dollars unless otherwise indicated)General Accident Insurance Company Jamaica Limited Company Statement of Changes in Equity Year ended 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 85 General Accident Insurance Company Jamaica LimitedCompany Statement of Changes in EquityYear ended 31 December 2022(expressed in Jamaican dollars unless otherwise indicated)86 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedCompany Statement of Cash FlowsYear ended 31 December 2022(expressed in Jamaican dollars unless otherwise indicated)General Accident Insurance Company Jamaica Limited Company Statement of Cash Flows Year ended 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 87 88 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 89 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)90 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 91 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)92 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 93 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)94 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 95 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)96 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 97 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)98 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 99 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)100 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 101 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)102 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 103 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)104 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 105 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)106 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 107 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)Development Claim Liabilities In addition to sensitivity analysis, the development of insurance liabilities provides a measure of the Group’s claims liability for accident years 2015 - 2022 has changed at successive year-ends, up to 2022. Updated date are used to derive the revised amounts for the ultimate claims liability for each accident year, used in 108 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)ability to estimate the ultimate value of claims. The table below illustrates how the Group’s estimate of the ultimate unpaid claims and adjustment expenses (UCAE) and IBNR estimates in each successive year, as well as amounts paid to the development calculations. 2022 | GENERAL ACCIDENT ANNUAL REPORT 109 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)Development Claim Liabilities In addition to sensitivity analysis, the development of insurance liabilities provides a measure of the Company’s ability ultimate claims liability for accident years 2015 - 2022 has changed at successive year-ends, up to 2022. Updated amounts paid to date are used to derive the revised amounts for the ultimate claims liability for each accident year, 110 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)to estimate the ultimate value of claims. The table below illustrates how the Company’s estimate of the unpaid claims and adjustment expenses (UCAE) and IBNR estimates in each successive year, as well as used in the development calculations. 2022 | GENERAL ACCIDENT ANNUAL REPORT 111 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)112 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 113 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)114 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 115 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)116 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 117 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)118 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 119 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)120 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)Page 42 General Accident Insurance Company Jamaica Limited Notes to the Financial Statements 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 4. Insurance and Financial Risk Management (Continued) (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: Group Within 1 Month Within 3 Months 3 to 12 Months 1 to 5 Years Over 5 Years No Specific Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 At 31 December 2022: Cash and short-term investments 778,81913,897 - - - - 792,716Due from policyholders, brokers and agents 702,652 1,064,276 - - - - 1,766,928 Due from reinsurers and i926,601 1,123,649 1,291,082 - 3,341,332 Deferred policy acquisition cost - - - - - 626,397 626,397 Other receivables 14,18113,47546,669- - 786,068 860,393 Due from related parties - - - - - 8,049 8,049 Loan receivable 1,858 3,71516,71589,14966,861- 178,298Lease receivable 2,7834,48720,19172,8526,969- 107,282 Real estate investment - - - 189,912 - - 189,912 Investment securities 466,001486,1651,118,738625,68147,921709,189 3,453,695 Total financial assets 2,892,895 2,709,664 2,493,395 977,594 121,751 2,129,703 11,325,002 Due to reinsurers and coinsurers 837,141 565,462 - - - - 1,402,603 Other liabilities 241,776 19,968 130,847 392,591 Due to related parties - - - - - 29,914 29,914 Lease liabilities 6,302 6,755 36,3877,153- - 56,597 Claims liabilities 1,871,532 1,267,095 1,569,313 2,778,188 - - 7,486,128 Total financial liabilities 2,956,751 1,859,280 1,736,547 2,785,341 - 29,914 9,367,833 Net Liquidity Gap (63,856) 850,384756,848(1,997,659)121,751 2,289,701 1,957,169 Cumulative gap (63,856) 786,528 1,543,376(454,283) (332,532) 1,957,169 2022 | GENERAL ACCIDENT ANNUAL REPORT 121 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)Page 42 General Accident Insurance Company Jamaica Limited Notes to the Financial Statements 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 4. Insurance and Financial Risk Management (Continued) (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: Group Within 1 Month Within 3 Months 3 to 12 Months 1 to 5 Years Over 5 Years No Specific Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 At 31 December 2022: Cash and short-term investments 778,81913,897 - - - - 792,716Due from policyholders, brokers and agents 702,652 1,064,276 - - - - 1,766,928 Due from reinsurers and i926,601 1,123,649 1,291,082 - 3,341,332 Deferred policy acquisition cost - - - - - 626,397 626,397 Other receivables 14,18113,47546,669- - 786,068 860,393 Due from related parties - - - - - 8,049 8,049 Loan receivable 1,858 3,71516,71589,14966,861- 178,298Lease receivable 2,7834,48720,19172,8526,969- 107,282 Real estate investment - - - 189,912 - - 189,912 Investment securities 466,001486,1651,118,738625,68147,921709,189 3,453,695 Total financial assets 2,892,895 2,709,664 2,493,395 977,594 121,751 2,129,703 11,325,002 Due to reinsurers and coinsurers 837,141 565,462 - - - - 1,402,603 Other liabilities 241,776 19,968 130,847 392,591 Due to related parties - - - - - 29,914 29,914 Lease liabilities 6,302 6,755 36,3877,153- - 56,597 Claims liabilities 1,871,532 1,267,095 1,569,313 2,778,188 - - 7,486,128 Total financial liabilities 2,956,751 1,859,280 1,736,547 2,785,341 - 29,914 9,367,833 Net Liquidity Gap (63,856) 850,384756,848(1,997,659)121,751 2,289,701 1,957,169 Cumulative gap (63,856) 786,528 1,543,376(454,283) (332,532) 1,957,169 122 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 123 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)124 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 125 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)126 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 127 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)128 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 129 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)130 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 131 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)132 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 133 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)134 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 135 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)136 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 137 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)138 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)Page 59 General Accident Insurance Company Jamaica Limited Notes to the Financial Statements 31 December 2022 (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) 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 taxesThere 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) 2022 | GENERAL ACCIDENT ANNUAL REPORT 139 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)140 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)Page 61 General Accident Insurance Company Jamaica Limited Notes to the Financial Statements 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 8. Segment Information (Continued) The segment information provided to the board of directors for the reportable segments for the year ended 31 December 2022 is as follows: Group Fire Motor Marine Liability Homeowners & Burglary Engineering & Accident Total 2022 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Gross Premiums Written 8,665,491 4,037,965 154,150 1,127,403 285,931 843,269 15,114,209 Reinsurance ceded (8,561,693) (733,290) (135,418) (939,783) (255,693) (717,941) (11,343,818) Excess of loss reinsurance cost (85,428) (171,072) - (4,695) (55,859) - (317,054) Net premiums written 18,370 3,133,603 18,732 182,925 (25,621) 125,328 3,453,337 Changes in unearned premiums, net (20,096) (88,926) 386 (11,157) (820) (5,242) (125,855) Net Premiums Earned (1,726) 3,044,677 19,118 171,768 (26,441) 120,086 3,327,482 Commission income 487,177 323,570 22,865 51,355 65,255 115,196 1,065,418 Commission expense (131,236) (385,799) (4,190) (27,649) (33,596) (49,517) (631,987) Claims expense 5,518 (1,480,151) 3,564 (20,848) (299) (16,121) (1,508,337) Management expenses (39,707) (1,664,855) (1,155) (91,961) (15,304) (52,980) (1,865,962) Segment results 320,026 (162,558) 40,202 82,665 (10,385) 116,664 386,614 Unallocated income - Investment income 436,410 Finance charge (2,503) Other income 39,381 859,902 Depreciation and amortisation (151,735) Profit before tax 708,167 Taxation (110,937) Net profit 597,230 2022 | GENERAL ACCIDENT ANNUAL REPORT 141 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)Page 62 General Accident Insurance Company Jamaica Limited Notes to the Financial Statements 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 8. Segment Information (Continued) Group Fire Motor Marine Liability Homeowners & Burglary Engineering & Miscellaneous Accident Total 2021 $’000 $’000 $’000 $’000 $’000 $’000 $’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) Net premiums written (20,647) 2,983,405 14,074 163,966 18,465 94,701 3,253,964 Changes in unearned premiums, net (4,817) (220,196) 198 3,087 (2,338) 2,861 (221,205) Net Premiums Earned (25,464) 2,763,209 14,272 167,053 16,127 97,562 3,032,759 Commission income 396,940 309,450 19,566 43,208 35,214 88,479 892,857 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 166,027 (358,638) 30,535 116,541 5,649 120,203 80,317 Unallocated income - Investment income 226,526 Finance charge (7,076) Other Income 124,591 424,358 Depreciation and amortisation (164,663) Profit before tax 259,695 Taxation (110,459) Net profit 149,236 Total capital expenditure was as follows: 2022 $’000 2021 $’000 Property, plant and equipment 174,540 127,134 Intangible assets 720 536 175,260 127,670 Assets, liabilities and capital expenditure are not reported by segment to the Board of Directors. 142 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 143 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)144 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 145 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)146 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 147 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)148 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 149 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)150 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 151 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)152 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 153 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)154 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 155 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)156 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 157 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)158 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 159 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)160 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 161 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)162 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 163 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)164 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated) 2022 | GENERAL ACCIDENT ANNUAL REPORT 165 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)166 2022 | GENERAL ACCIDENT ANNUAL REPORT General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)FORM OF PROXY 2022 | GENERAL ACCIDENT ANNUAL REPORT 167 General Accident Insurance Company Jamaica LimitedNotes to the Financial Statements31 December 2022(expressed in Jamaican dollars unless otherwise indicated)General Accident Insurance Company Jamaica Limited Notes to the Financial Statements 31 December 2022 (expressed in Jamaican dollars unless otherwise indicated) 168 2022 | GENERAL ACCIDENT ANNUAL REPORT 168 2022 | GENERAL ACCIDENT ANNUAL REPORT PROXY FORM 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 15, 2023, 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 Company for the year ended December 31, 2022. For Against 2. To authorize the Board of Directors to re-appoint PwC as the Auditors of the Company For Against 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 Jennifer Scott as a Director of the Board of the Company. For Against 3. (b) To re-appoint Nicholas Scott as a Director of the Board of the Company. For Against 3. (c) To re-appoint Brian Jardim 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 ﬁnancial year ended 31st December 2022, being $250,573,125.12 or 24.298 cent per ordinary share, as the ﬁnal dividend for the year. For Against Signed this Signed: Signed: Name: Name: day of 2023: (signature of primary shareholder) (signature of joint shareholder, if any) (print name of primary shareholder) (print name of joint shareholder, if any) Visit www.genac.com or Call 876-929-8451 for an instant quote.

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