1
2 0 2 4 A N N U A L R E P O R T
2011
Listed on Stock Exchange
In 2011, General Accident listed 20% of its ordinary shares on the
Junior Market of the Jamaica Stock Exchange and became the only
publicly-traded general insurance company in Jamaica.
1920
Operating in Jamaica
General Accident started operations in Jamaica
in the 1920’s as agents for the worldwide
insurance company of General Accident Fire &
Life Assurance Corporation, GAFLAC, located
in Perth Scotland, an 1885 entity with significant
presence in 45 countries.
2019
Trinidad Acquisition
General Accident acquired a majority stake in
Motor One Insurance Company Limited
(“Motor One”), a Trinidadian motor insurance
company headquartered in Port of Spain with
a large branch network throughout Trinidad.
2016
AutoSMART Launched
AutoSmart Insurance, a cutting-edge product
developed by General Accident, addresses the
unmet requirements of a neglected segment within
the general insurance sector. With its innovative
interface, AutoSmart revolutionises the Jamaican
insurance landscape by providing a wide array of
protection options.
COMPANY
HISTORY
1998
Wholly-Owned
Musson (Jamaica) Limited became
the sole parent of General Accident.
2023
Stock Exchange
Main Market
General Accident graduated to the
main Market of the Jamaica
Stock Exchange.
2020
Barbados
Startup
In May 2020, General Accident
acquired a licence in Barbados
and operations began.
1981
Joint Partnership
General Accident Fire & Life Assurance
Corporation "GAFLAC" - A
Scotland-based global insurance
company and Musson Group of
Companies formed a Joint Partnership.
1998
Brand Retained
General Accident retained its brand,
underwriting and management
philosophies it was known for in the
insurance and reinsurance industries,
which have served the Company and
its policyholders well for 30 years.
4
2 0 2 4 A N N U A L R E P O R T
06.
18.
22.
GENERAL ACCIDENT AT A GLANCE
Purpose & Vision
Corporate Structure
Key Performance Highlights
Consistent Shareholders Dividend
Consolidated Loss Ratio Over Five Years
Consolidated Portfolio Composition
10 - Year Statistical Review
Our Strategic Priorities
Our Brand Promise
NOTICE OF ANNUAL GENERAL MEETING
Notice of Annual General Meeting
CORPORATE GOVERNANCE
Chairman’s Report
Directors’ Report
Directors’ Profiles
Corporate Governance Report
5
2 0 2 4 A N N U A L R E P O R T
36.
LEADERSHIP AND OPERATIONS
Senior Leadership Team
Management Team
Regional Management Team
Management Discussion & Analysis
Risk Committee
54.
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility
Employee Engagement
64.
70.
78.
DISCLOSURE OF SHAREHOLDERS
Top 10 Shareholders
Shareholdings of Directors and their
Connected Parties
Shareholdings of Management Team
CORPORATE DATA
Company Profile
Contact Information
Jamaica
• Kingston
• Montego Bay
Trinidad
Barbados
FINANCIAL STATEMENTS
PROXY FORM
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
PURPOSE
&VISION
7
2 0 2 4 A N N U A L R E P O R T
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.
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.
OUR PURPOSE
OUR VISION
8
2 0 2 4 A N N U A L R E P O R T
J$ 3,685,042
J$82,172
J$985,206
J$ 8,693,904
J$ 755,504
235
Employees
10
Employees
69
Employees
JAMAICA
BARBADOS
TRINIDAD
$'000
$'000
$'000
$'000
$'000
$'000
J$ 1,977,515
Revenue
Revenue
Revenue
Net Assets
Net Assets
Net Assets
CORPORATE STRUCTURE
9
2 0 2 4 A N N U A L R E P O R T
KEY PERFORMANCE
HIGHLIGHTS
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
DIVIDEND AS PERCENTAGE OF PROFIT
DIVIDEND PER SHARE
CONSISTENT SHAREHOLDERS DIVIDEND
$0.20
$0.20
$0.22
62%
54%
57%
52%
68%
50%
50%
50%
50%
50%
43%
$0.17
$0.17
$0.19
$0.18
$0.14
$0.22
$0.19
$0.24
10
2 0 2 4 A N N U A L R E P O R T
2020
2021
2022
2023
2024
CONSOLIDATED LOSS RATIOS
OVER FIVE YEARS
RESTATED
62%
47%
45%
2022
45%
58%
66%
KEY PERFORMANCE
HIGHLIGHTS
11
2 0 2 4 A N N U A L R E P O R T
KEY PERFORMANCE
HIGHLIGHTS
CONSOLIDATED PORTFOLIO COMPOSITION
Marine
Liability
Accident
Engineering
Fire
Motor
12
2 0 2 4 A N N U A L R E P O R T
10-YEAR STATISTICAL REVIEW
(J$’000)
2023
(J$’000)
RESTATED
2022
(J$’000)
2021
2022
(J$’000)
274
18,967,162
8,575,708
2,123,319
5,637,217
300,204
696,106
740,495
548,268
202,526
47%
14%
50%
4,008,067
(J$’000)
2024
EMPLOYEES
GROSS WRITTEN PREMIUMS (IFRS 4)
INSURANCE REVENUE (IFRS 17)
CLAIMS INCURRED (IFRS 4)
INSURANCE SERVICE EXPENSES (IFRS 17)
UNDERWRITING PROFIT/(LOSS)
INSURANCE SERVICE RESULTS (IFRS 17)
PROFIT BEFORE TAX
PROFIT AFTER TAX
CASH DIVIDENDS
LOSS RATIO
RETURN ON EQUITY
DIVIDEND PAYOUT RATIO
SHAREHOLDER’S EQUITY
259
15,114,209
6,666,555
1,508,337
4,151,051
386,614
619,226
891,331
780,394
250,573
45%
23%
50%
3,664,210
259
15,114,209
-
1,508,337
-
386,614
-
708,167
597,230
250,573
45%
20%
50%
3,170,060
229
13,959,807
-
1,751,360
-
80,317
-
259,695
149,236
196,701
58%
5%
50%
2,921,964
314
22,579,471
11,426,923
3,330,147
6,839,471
234,617
248,851
299,668
248,324
224,998
62%
6%
43%
4,220,144
13
2 0 2 4 A N N U A L R E P O R T
10-YEAR STATISTICAL REVIEW
(J$’000)
2019
(J$’000)
2018
(J$’000)
2017
(J$’000)
2016
(J$’000)
2015
132
10,727,828
-
1,205,328
-
442,136
-
770,154
651,558
142,684
54%
32%
50%
3,003,565
131
8,735,797
-
1,023,022
-
174,768
-
352,569
285,370
150,047
63%
15%
68%
2,056,612
111
7,106,254
-
1,087,590
-
(35,532)
-
236,077
221,236
200,001
82%
11%
52%
1,937,771
91
5,649,097
-
746,073
-
45,609
-
404,243
386,879
175,003
66%
22%
57%
1,964,420
90
6,112,355
-
696,480
-
114,656
-
303,448
304,418
172,219
62%
19%
54%
1,775,297
EMPLOYEES
GROSS WRITTEN PREMIUMS (IFRS 4)
INSURANCE REVENUE (IFRS 17)
CLAIMS INCURRED (IFRS 4)
INSURANCE SERVICE EXPENSES (IFRS 17)
UNDERWRITING PROFIT/(LOSS)
INSURANCE SERVICE RESULTS (IFRS 17)
PROFIT BEFORE TAX
PROFIT AFTER TAX
CASH DIVIDENDS
LOSS RATIO
RETURN ON EQUITY
DIVIDEND PAYOUT RATIO
SHAREHOLDER’S EQUITY
(J$’000)
2020
205
12,044,990
-
1,816,926
-
1,445
-
259,536
193,812
222,668
66%
6%
50%
2,974,866
14
2 0 2 4 A N N U A L R E P O R T
OUR STRATEGIC PRIORITIES
VALUE CREATION AND
LONG-TERM SUSTAINABILITY
General Accident uses over 40 years
of experience to create value for our
shareholders, policyholders and employees
while meeting all regulatory and due
diligence requirements. We provide a suite
of modern risk transfer mechanisms to
facilitate commerce and protect the assets
of companies and people by reducing risk
and uncertainty. We safeguard national
economic health with our knowledge of risk
assessment and management, and solid
insurance underwriting techniques. Using
sound investment decisions and a strategy
of managed growth, we have built a solid
balance sheet to ensure long term financial
stability.
SOUND INVESTMENT
DECISIONS
Our investment policy is geared towards
building a strong, growing balance sheet, by
stringent asset/liability management and
ensuring capital adequacy. Our investment
decisions are influenced by cash flow
imperatives, potential currency volatility and
the inflation sensitivity of our underwriting
liabilities. We target the optimal mix of
investments to provide adequate returns for
shareholders, while meeting all regulatory
requirements.
DISTRIBUTION CHANNELS
Our head office is located in Kingston,
Jamaica and we write business through
an
islandwide
network
of
insurance
professionals. We have embarked on a
regional expansion programme, and now
offer insurance products in Trinidad and
Tobago and Barbados. Our distribution
partners are essential to our business model
and we regard our producers as strategic
drivers of our success. We continue to look
for other expansion opportunities within the
Caribbean.
FAST, FAIR CLAIMS
SETTLEMENT
We believe the true test of an insurance
policy is when a claim is made. We endeavour
to meet our customers’ expectations for
fair, flexible and accessible claims service by
simple processes and fast turnaround times.
We see claims handling as an opportunity to
reinforce the trust of our clients and build
customer loyalty.
15
2 0 2 4 A N N U A L R E P O R T
ROBUST RISK MANAGEMENT
Insurance cover reduces risk and uncertainty. We
rely on a comprehensive risk management
framework to ensure risk tolerance limits
are adhered to, particularly regarding critical
reinsurance
support.
Regulatory
capital
adequacy is central to our continuity, and our
risk strategies are designed to ensure that
legal requirements are met or exceeded.
DEVELOPING THE GENAC TEAM
Our staff complement is one of our most
important resources. We are committed to
recruiting, training and keeping the right
people, providing them with a culture of
excellence and opportunity. We create value
for our employees by investing in their
capabilities and potential through training and
development programmes.
UTILISING INFORMATION
TECHNOLOGY
A digital transformation is well underway
at GenAc. We now deliver a range of
online services to our customers, with
improvements being added all the time.
We seek to ensure our customers receive
superior service, whether they contact us
by telephone, email, social media or via our
website. We prioritize secure online systems
to handle new business, renewals and claims
payments. Our growing expertise with data
analytics allows us to respond quickly and
appropriately to changing market conditions.
MAXIMISING EARNINGS
Our growth initiatives remain:
•
Growth in value-priced and profitable
product lines
•
Payment of dividends to shareholders
•
Steady strengthening of our balance
sheet, liquidity base and capital to
provide the essential foundation for
growth
•
Consistent improvements in operational
efficiencies, as we aim to deliver service
that exceeds our clients’ and our
business partners’ expectations.
MAINTAIN CORPORATE SOCIAL
RESPONSIBILITY
We regard our good reputation as a critical
long-term asset, and we are committed to the
principles of corporate social responsibility.
We ensure our operations benefit the
economy, the society and the environment.
With the consistent guidance and expertise of
our Board of Directors, we seek to:
•
Provide a productive, well-compensated
and incentive-driven work environment
for our employees
•
Involve our staff members in outreach
efforts to support education,
underserved children and the natural
environment
•
Ensure all we do is grounded in high
standards of integrity and ethical
conduct
16
2 0 2 4 A N N U A L R E P O R T
We maintain financial
strength to ensure
consistent profitable growth.
We are creative, willing to
make bold decisions and
challenge the status quo.
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.
SOLID FOUNDATION
INNOVATION
We strive for service that
exceeds customer expectations.
PERFORMANCE
We are honest and
fair in all our actions.
INTEGRITY
We have a strong sense of
responsibility towards our
customers, society, the
environment and each other.
RESPONSIBILITY
BRAND
PROMISE
OUR BRAND PROMISE
NOTICE OF
ANNUAL GENERAL MEETING
20
2 0 2 4 A N N U A L R E P O R T
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 12,
2025, at 58 Half Way Tree Road for shareholders to consider and, if thought fit, to pass
the following resolutions:
ORDINARY RESOLUTIONS
1.
To receive the report of the Board of Directors and the audited accounts of the
Company for the financial year ended December 31, 2024.
2. To authorise the Board of Directors to re-appoint PWC as the auditors of the
Company, and to fix their remuneration.
3. To re-appoint the following Directors of the Board, who have resigned by rotation
in accordance with the Articles of Incorporation of the Company and, being
eligible, have consented to act on re-appointment:
a. To re-appoint P. B. Scott as a Director of the Board of the Company.
b. To re-appoint Melanie Subratie as a Director of the Board of the Company.
c.
To re-appoint Christopher Nakash as a Director of the Board of the Company.
4. To authorise the Board of Directors to fix the remuneration of the Directors.
5. To approve the aggregate amount of interim dividends declared by the Board
during the financial year ended 31st December 2024, being $224,998,125.07 or
21.818 cent per ordinary share, as the final dividend for that year.
Signed this 25th day of April, 2025 by Order of the Board
GENERAL ACCIDENT INSURANCE COMPANY (JAMAICA) LIMITED
Lesley Miller
CORPORATE SECRETARY
NOTICE OF
ANNUAL GENERAL MEETING
21
2 0 2 4 A N N U A L R E P O R T
22
2 0 2 4 A N N U A L R E P O R T
CORPORATE
GOVERNANCE
23
2 0 2 4 A N N U A L R E P O R T
24
2 0 2 4 A N N U A L R E P O R T
CHAIRMAN’S
REPORT
25
2 0 2 4 A N N U A L R E P O R T
For the financial year ended December
2024, General Accident recorded the highest
insurance revenue in our history. We achieved
insurance revenue of $11.4 billion, an increase of
$2.9 billion or 33% over 2023, and profit before
tax of $299.7 million. Further, General Accident
produced a 6% return on equity and distributed
$225.0 million in dividends to our shareholders.
General Accident is making significant strides
in our journey to become a leading regional
general insurance provider. In Jamaica, we
maintained our position as one of the largest
underwriters
of
general
insurance
risks,
recording gross written premiums of $19.7
billion, an increase of $2.7 billion or 16% over
2023. In Trinidad, we achieved exceptional
growth, with an insurance revenue increase of
48% over 2023. This success reflects strong
customer retention, enhanced technology, and
solid partnerships. As a result, for the second
year in a row, the company contributed positively
to the Group with an after-tax profit of $27.7
million. In Barbados, we grew revenue by 33%
to $755.5 million, driven by the expansion of
our property and motor portfolio. We achieved
a net profit of $0.4 million, reversing a loss
from 2023, through strong growth, effective
cost management, and increased broker and
agent engagement.
General Accident’s consolidated profits in
2024 reflect our ongoing investment in our
expanding subsidiaries in Trinidad and Barbados.
While these investments have impacted short-
term results, they are expected to generate
significant long-term value. In 2024, Trinidad
achieved profitability for the second consecutive
year, while Barbados reached profitability for
the first time. Achieving profitability in these
new markets within the first few years of
operation, despite a challenging environment, is
a testament to both our team and our strategy.
Our expanding presence in the Caribbean’s
three largest insurance markets diversifies our
underwriting risk and generates economies
of scale, enabling General Accident to invest
in, develop, and implement digital insurance
solutions more efficiently. General Accident
remains crucial in providing adequate insurance
coverage in Jamaica, Trinidad, and Barbados,
benefiting both our clients and the broader
communities in which we operate.
In 2024, General Accident advanced its mission to become a leading regional
general insurance company. Leveraging our trusted brand, talented team,
strong partnerships and cutting-edge technology.
PAUL B. SCOTT
Chairman
26
2 0 2 4 A N N U A L R E P O R T
FINANCIAL RESULTS
The Statement of Comprehensive Income
for the Group shows pre-tax profits for the
year of $299.7 million, taxation of $51.3
million and a net profit after tax of $248.3
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, 2024, 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: P.B. Scott, Melanie
Subratie and Christopher Nakash but
being eligible, will offer themselves for
re-election.
AUDITORS
The auditors of the company,
PricewaterhouseCoopers of Scotiabank
Centre, Duke Street, Kingston, Jamaica,
have expressed their willingness
to continue in office. The Directors
recommend their re-appointment.
DIVIDEND
A dividend of 21.818 cents per share paid
on December 16, 2024, is proposed to be
the final dividend in respect of the financial
year ended December 31, 2024.
DIRECTORS’ REPORT
as at DECEMBER 31, 2024
The Directors are pleased to present their report for General Accident Insurance Company
Jamaica Limited for the financial year ended December 31, 2024.
27
2 0 2 4 A N N U A L R E P O R T
28
2 0 2 4 A N N U A L R E P O R T
DIRECTOR’S
as at December 31, 2024
P.B. Scott is the CEO, Chairman and Principal
Shareholder of the Musson Group. Over the last
two decades, P.B. Scott has conceptualized and
led the expansion of the Musson Group from
a Jamaican consumer wholesale distribution
business to a diversified group operating in
30 countries. The Group is a leader across
the Caribbean in food, premium beverages,
pharmaceuticals,
information
technology,
and insurance. The Musson Group includes
leading businesses such as The PBS Group,
Seprod Limited, General Accident Insurance,
and A.S. Brydens & Sons. He has served as
CEO of Musson since 2004. Today the Musson
Group has a turnover in excess of US$1.7 billion
annually and over 8,000 employees.
In addition to his private sector contributions,
P.B. Scott has committed a significant amount
of time to public service. He is the chairman
of the Development Bank of Jamaica and
has led multiple enterprise teams to divest
government assets. In 2016 he was awarded
the Jamaican national honor “the Order of
Distinction” (OD) for service to business in the
Caribbean. In 2023, he was awarded “the Order
of Jamaica (OJ)” for his exceptional contribution
to the Business Industry, Investment, and
Philanthropy in Jamaica and the Caribbean. In
addition, he was awarded the Ernst & Young
Entrepreneur of the Year for Jamaica in 2024.
The Musson Group manages two foundations
in Jamaica in addition to their initiatives in
the other markets it operates in. The Musson
Foundation and the Seprod Foundation are
solely focused on empowering Jamaican
youth and uplifting our communities. The work
of the foundations are guided by strategic
pillars including Education, Food Security
and Community which are essential for
development in Jamaica.
PB Scott is a keen sailor and is married to
Jennifer, an attorney at law and partner at
law firm Clinton Hart. Together they have two
children.
PAUL B.
SCOTT
Chairman
SHARON
DONALDSON
Managing Director
Sharon Donaldson has been the Managing
Director of the Company since 2008. She
holds a Bachelor of Laws (LL.B.) from the
University of London and an MBA from
the University of Wales. She is a Chartered
Accountant; a fellow member of the Institute
of Chartered Accountants of Jamaica and an
Attorney-at-Law.
Ms. Donaldson represents the local
general insurance industry in discussions
with the Financial Services Commission,
is treasurer for the Council of the Institute
of Chartered Accountants of Jamaica and
heads the Committee of Professional
Accountants in Business.
Ms. Donaldson is also a Director of Musson
(Jamaica) Limited, the parent company to
General Accident and Eppley Limited. She
serves as a Director and mentor of 138 Student
Living Limited and Paramount Trading Jamaica
Limited. She is also a member of the Jamaica
Anti-Doping Commission.
29
2 0 2 4 A N N U A L R E P O R T
S PROFILES
MELANIE
SUBRATIE
Deputy Chairman
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
Independent Non Executive Director
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.
GREGORY ST. HUGH
FOSTER
Executive Director
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.
30
2 0 2 4 A N N U A L R E P O R T
DIRECTOR’S
as at December 31, 2024
LESLEY
MILLER
Executive Director & Company Secretary
Lesley Miller is a an Executive Director and
the Company Secretary.
Mrs. Miller is the Group Chief Information
Officer of General Accident Insurance and
Interim CEO of GENACTT.. 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
Independent Non Executive Director
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.
NICHOLAS A.
SCOTT
Non Executive Director
Nicholas Scott is a Non Executive Director of
the Company and the Chief Investment Officer
for the Musson Group. He also serves as the
Managing Director of Eppley 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.
31
2 0 2 4 A N N U A L R E P O R T
S PROFILES
JENNIFER
SCOTT
Non Executive Director
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 partner at Clinton Hart & Co., Attorneys-
at-Law, specialising in financial securities and
corporate law.
MATTHEW
LYN
Independent Non Executive Director
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.
DUNCAN
STEWART
Independent Non Executive Director
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 BEng. (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.
2 0 2 4 A N N U A L R E P O R T
32
Our Corporate Governance framework is
designed to support the transparency and
accountability of the individuals and processes
in the Group as it expands its reach in the
region. The framework is documented in
our Corporate Governance Policy, wherein,
prescribed practices are aligned with the rigor
of global best practice, the Private Sector
Organisation of Jamaica’s Code on Corporate
Governance and the Jamaica Stock Exchange’s
Corporate Governance Guidelines.
The Group’s corporate governance standards
reflect
the
fundamental
principles
of
responsibility, integrity, prudence, transparency
and fair and equitable decision-making. It is
the collective responsibility of the Board to
supervise and direct the company’s affairs
in the interest of growth and profitability of
the business in the interest of providing an
equitable return to the shareholders.
CORPORATE GOVERNANCE
REPORT
33
2 0 2 4 A N N U A L R E P O R T
SHAREHOLDERS
Managing
DIRECTOR
Audit
COMMITTEE
Conduct Review
COMMITTEE
Compensation
COMMITTEE
General Meeting of
DIRECTORS
Board of
Investment
COMMITTEE
Senior
MANAGEMENT
External
AUDIT
CORPORATE GOVERNANCE
FRAMEWORK
Our Directors and Committees are aligned behind our strategic and corporate objectives
and are tasked with monitoring and ensuring that the efforts of all stakeholders support
those objectives.
BOARD OF DIRECTORS
The members of the Board of Directors and those entrusted with administering our
Corporate Governance embody diversity, experience, and proven excellence in their
34
2 0 2 4 A N N U A L R E P O R T
fields. Constituted to provide independence
and ensure balanced decision making, the
Board is comprised of eleven members, (11)
a non executive Chairman, seven (7) non-
executive directors and three (3) executive
directors.
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 core organisation
objectives and in alignment with necessary
risk considerations.
CONDUCT REVIEW COMMITTEE
The Committee has responsibility for
oversight of the policies and procedures
to ensure that the company conducts its
affairs responsibly and in keeping with
our values and the broad requirements of
the Regulators. The Committee is tasked
with the prevention, identification and
management of conflicts of interest and
the disclosures around any such conflicts.
The Conduct Review Committee comprises
of six (6) directors.
The Committee meets at least three (3)
times a year.
AUDIT COMMITTEE
The Committee is responsible for providing
oversight and advice to the Board on all
matters relating to financial reporting,
internal controls, and approval of financial
reports to be circulated to all regulatory
bodies.
The Audit Committee Comprises of five
(5) non-executive directors and one (1)
executive director.
The Audit Committee meets at least five
(5) times for the year.
INVESTMENT AND LOAN
COMMITTEE
The Committee is responsible for driving the
Group’s investment strategy and ensuring
that the strategy meets all compliance
requirements, inter alia, liquidity, quality,
and term of investments. The Committee
also ensures that any material financial
arrangement meets regulatory standards
and fits the credit risk appetite of the
Company.
The Investment and Loan Committee
comprises of six (6) non-executive directors
and one (1) executive director.
The Committee meets at least four (4)
times for the year.
LEADERSHIP &
OPERATIONS
38
2 0 2 4 A N N U A L R E P O R T
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.
In 2024, Lesley was appointed Interim CEO of
General Accident Trinidad. 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.
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.
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.
Chief Information Officer & Interim CEO (GENACTT)
Chief Operating Officer
CEO & Managing Director
LESLEY MILLER
GREGORY FOSTER
SHARON DONALDSON
SENIOR LEADERSHIP TEAM
39
2 0 2 4 A N N U A L R E P O R T
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 specialised 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
a Chartered Insurance Professional (CIP)
Designation with the Insurance Institute of
Canada.
Arnold Gerald is a seasoned financial leader
and a vital part of the General Accident
team as the Group Chief Financial Officer
(GCFO). With an extensive background in
financial accounting, modeling, and project
management, Arnold is instrumental in
driving the company’s financial strategies and
success. Arnold joined the General Accident
family in June 2023, bringing over 25 years of
distinguished experience to his role.
His decade-long immersion in the insurance
industry uniquely positions him to navigate
the financial intricacies of the sector. He
holds a MSc in Professional Accountancy and
is a Fellow of the Association of Chartered
Certified Accountants. Arnold’s proficiency
in a wide range of financial disciplines
contributes significantly to General Accident’s
financial stability and growth.
His strategic vision, coupled with his
meticulous approach to financial planning
and management, ensures the company’s
financial health and sustainability.
General Manager - AutoSmart
Group Chief Financial Officer
JANILLE JARRETT
ARNOLD GERALD
SENIOR LEADERSHIP TEAM
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.
General Manager (GAB)
WANDA MAYERS
40
2 0 2 4 A N N U A L R E P O R T
SENIOR LEADERSHIP TEAM
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.
Business Development Officer
JAMALDA STANFORD
BROWN
Angella Reynolds has over 40 years of
experience in general insurance, specialising
in underwriting and reinsurance. She has
served as Senior Risk & Reinsurance Manager
at General Accident since 2015, underwriting
across key classes such as Property &
Casualty, Marine, Engineering, Professional
Indemnity and Directors & Officers Liability
insurances.
A holder of the ACII and Chartered
Insurance Risk Manager designations from
the Chartered Insurance Institute (UK).
Angella has also represented the company
in reinsurance discussions across major
markets including London, Germany, and
Canada. She is a committed mentor and
trainer, contributing to the professional
development
of
future
insurance
practitioners within the organisation.
Senior Risk & Reinsurance Manager
ANGELLA D. REYNOLDS, ACII
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.
Chief Insurance Officer
MICHELLE ROBINSON
41
2 0 2 4 A N N U A L R E P O R T
42
2 0 2 4 A N N U A L R E P O R T
REGIONAL MANAGEMENT TEAM
43
2 0 2 4 A N N U A L R E P O R T
REGIONAL MANAGEMENT TEAM
44
2 0 2 4 A N N U A L R E P O R T
REGIONAL MANAGEMENT TEAM
MANAGEMENT DISCUSSIONS
& ANALYSIS
It gives me great pleasure to report that the Company
continues to produce a profitable performance in 2024 as
the value of the business is well up on the previous year.
In 2024, General Accident continued
successfully executing its strategy of
building a leading regional general
insurance company. Our strategy follows
a structured, focused approach designed
to further our Company’s growth and
development and we are pleased to share
with our stakeholders that the synergies
are now being realised. The group has
seen pleasing growth in all business
entities across the region generating
positive underlying gains.
The General Accident Group achieved
insurance
revenue
of
$11.4
billion,
representing an increase of $2.9 billion or
33% compared to 2023. We also recorded
a profit before tax of $299.7 million.
Notably, the Company delivered a 6%
return on equity and distributed $225.0
million in dividends to shareholders.
PROFITABILITY
48
2 0 2 4 A N N U A L R E P O R T
General Accident Jamaica maintained its
position as one of the largest underwriters
of general insurance risks, with insurance
revenue of $8.7 billion, an increase of $2.0
billion or 29.0% over 2023. The investment
portfolio
performed
reasonably
well,
posting encouraging earnings for 2024
in excess of $363.5 million. The technical
portfolio suffered a higher-than-budgeted
claims ratio, which negatively impacted our
2024 performance. Despite the reduction
in profitability, we are optimistic about our
future performance. Policy count grew
by more than 30,000, and our business
retention exceeded our internal targets.
This augurs well for the future and should
drive an uplift in profitability for 2025.
General
Accident
Trinidad
delivered
exceptional growth in insurance revenue
in 2024, recording a robust 48% increase.
This performance reflects our ability to
attract and retain customers in a highly
competitive market. The impressive results
are driven by the dedication of our team,
enhanced technological capabilities, strong
partnerships with supportive business
allies, and sound corporate governance.
For the second consecutive year, General
Accident
Trinidad
made
a
positive
contribution to the Group, posting an after-
tax profit of $27.7 million. With a solid
foundation, the Company is well-positioned
for continued growth as we strengthen
existing relationships, expand our agency
and sales network, and further leverage
our investments in technology.
General Accident Barbados continued to
build momentum in 2024, strengthening
its position in the local insurance market.
Revenue increased by 33 percent to $755.5
million, representing a gain of $189.5 million
over 2023. This strong performance was
primarily driven by the expansion of our
property portfolio, supported by increased
broker engagement and a growing agent
network, with new business serving as the
key contributor. Our motor portfolio also
saw growth during the year, supported by
rising consumer awareness of our brand.
The Company outperformed expectations
through a combination of revenue growth
and disciplined cost management. As a
result, we achieved profitability in 2024,
recording a net profit of $0.4 million,
compared to a net loss of $12.2 million
in 2023. General Accident Barbados
remains focused on sustainable growth by
strategically expanding its team, improving
operational efficiency, and advancing the
digitalisation of its processes to support
future profitability.
49
2 0 2 4 A N N U A L R E P O R T
INVESTMENT INCOME
Group Investment income increased by
21% to $411.7 million, up from $340.8
million in 2023. This increase was driven
by gain on sale of investments during the
year. General Accident Jamaica contributed
$363.5 million to the group investment
income compared to $304.1 million for
the prior period whilst the subsidiaries
contributed $48.2 million.
FINANCIAL STRENGTH
General Accident Group is well capitalized
with an equity book value of $4.2 billion.
This provides stability to weather any
potential economic challenges of 2025.
Our total assets increased by 24% to $12.2
billion, up from $9.8 billion in 2023.
CAPITAL MANAGEMENT
General Accident Group allocates its capital
to maximise long term shareholder value
while maintaining financial strength. We
consistently meet required regulatory and
solvency ratios. Our policy is to allocate
capital to investment opportunities earning
the highest risk adjusted returns, as we
seek to maintain a balance between higher
returns and the security of a prudent capital
position.
We are pleased to report that we met
the
regulatory
capital
and
liquidity
requirements for all entities for 2024.
FINANCIAL HIGHLIGHTS
General Accident Group
Consistent, robust premium growth
Insurance revenue of $11.4 billion
Profit for the year of $248.3 million
Book value of $4.2 billion
Total assets of $12.2 billion
Earnings per share of $0.23
General Accident Jamaica
23 years of premium growth
Insurance revenue of $8.7 billion
Profit for the year of $221.3 million
Book value of $3.7 billion
Total assets of $10.2 billion
Profit attributable to owners was $241.3 million in 2024. We paid dividends amounting to
$225.0 million in the year under review.
50
2 0 2 4 A N N U A L R E P O R T
In 2025, General Accident remains committed
to strengthening our market leadership in
Jamaica, expanding our presence in Trinidad
& Tobago and Barbados, and accelerating
our digital transformation. We will continue
to harness our regional reach, advanced
digital
capabilities,
and
solid
financial
position to seize opportunities and deliver a
comprehensive range of insurance products
across the Caribbean’s largest markets.
General Accident remains firmly committed
to
executing
our
strategic
objectives.
We move forward with confidence and
optimism, backed by a clear approach, a
strong organisational culture, and a suite
of products tailored for today’s digitised,
customer-centric marketplace. With these
strengths, we are well positioned to deliver
strong financial performance and enhance
policyholder satisfaction.
I extend my sincere thanks to the Board of
Directors for their invaluable insight, guidance,
and support to the management and staff
of General Accident. To our dedicated team
members in Jamaica, Trinidad & Tobago, and
Barbados, I offer my heartfelt appreciation
Description
Jamaica MCT
Trinidad & Tobago Regulatory Capital Ratio
Barbados Solvency Margin
Benchmark
150%
150%
500,000 BBD
Actual
183%
173%
821,000 BBD
LOOKING AHEAD
General Accident’s presence across the Caribbean’s three largest insurance markets enables us
to achieve economies of scale, which we leverage to invest in, develop, and deploy innovative
digital insurance solutions. Our growing footprint in Trinidad & Tobago and Barbados gives
us a competitive advantage, supported by streamlined operations that reflect the strategic
investments we have made in digitisation over the past several years. This strong foundation
positions us to further enhance our operational efficiency in 2025.
51
2 0 2 4 A N N U A L R E P O R T
SHARON DONALDSON
CEO & Managing Director
for your unwavering commitment to the
Company’s success. To our brokers and
customers, thank you for the trust you
continue to place in us. We remain deeply
committed to our brand promise of excellence
and will continue to deliver meaningful value
to our customers, employees, business
partners, and shareholders.
52
2 0 2 4 A N N U A L R E P O R T
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.
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.
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 risk categories subject to Board
oversight are set out below:
RISK MANAGEMENT
• Underwriting Risk
• Liquidity Risk
• Credit Risk
• Operational RisK
• Regulatory Capital
• Market Risk
• 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.
Adverse claims development.
Inadequate premiums.
The risk of insufficient cash flows to
meet settlement obligations as they
fall due.
The risk of failure of internal
processes and systems and loss of
or inadequate human resources.
The risk of economic losses on our
investment portfolio resulting from
price changes in capital markets.
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.
• We use cash flow forecasting.
• We maintain sufficient liquid assets at required levels
to meet our obligations at all times.
• We carry out frequent review of internal processes to
identify vulnerabilities.
• We have in place a structured programme for building
our staff members capacity.
• 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.
• 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.
The risk of not meeting regulatory
benchmarks.
TYPE OF RISK
RISK DETAIL
APPROACH
53
2 0 2 4 A N N U A L R E P O R T
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.
RISK MANAGEMENT
CORPORATE SOCIAL
RESPONSIBILITY
56
2 0 2 4 A N N U A L R E P O R T
READ ACROSS JAMAICA DAY
May 7, 2024, marked the annual celebration
of Read Across Jamaica Day and the GenAc
team was excited to introduce the students
of Maisie Green Learning Centre, Dunrobin
Primary School and St Joseph’s Infant School
to the joy of reading.
A wave of first-time readers from GenAc were
present to share with the students who were
equally happy to enter a world powered by
their imaginations in keeping with the year’s
theme “Unlocking our imagination, building
our knowledge through reading”.
JAMAICA DOWN’S SYNDROME
FOUNDATION
In addition to rocking colourful socks on
World Down Syndrome Day, staff members
showcased
commitment
to
generating
awareness of World Down Syndrome Day,
March 21, by donating to Jamaica Down’s
Syndrome Foundation. The sum was collated
from individual donations made by employees
which was then matched by GenAc.
BLOOD DRIVE
Our 4th annual Blood Drive was held on
Wednesday, June 12, in collaboration with
Chain of Hope Jamaica and the National Blood
Transfusion Service supported by the Musson
Foundation. The event saw a good turnout
and collected a total of 47 pints of blood,
providing a significant boost to the nation’s
blood reserves.
Partnering with Chain of Hope for the second
year, the annual Blood Drive once again
provided the life-saving resource to patients
awaiting heart surgery at the Bustamante
Hospital for Children.
HOUR OF CODE
The faces of the young boys and girls from
Seaward Primary School and Drews Avenue
CORPORATE SOCIAL
RESPONSIBILITY
Youth development, capacity building and environmental sustainability were three key
areas of focus for us in 2024. Each initiative was earnestly supported by our dedicated
staff members resulting in significant advances of our mission of community development
through education, health and wellness and respect for the environment.
General Accident is proud to share the highlights of our 2024 activities:
57
2 0 2 4 A N N U A L R E P O R T
Primary School lit up with excitement as they
delved into the world of coding and artificial
intelligence (AI) at this year’s highly anticipated
Hour of Code initiative.
Now in its third year, the event encouraged
students to unleash their creativity by
programming their very own digital dance
routines using AI. Hosted by GenAc in
collaboration with the Seprod Foundation and
Halls of Learning, the hands-on event combined
fun and education, fostering problem-solving
skills, teamwork, and innovation under the
theme, “Making the invisible visible”.
JAMAICA ENVIRONMENT TRUST
(JET)
In 2024, the partnership between GenAc and
JET was reaffirmed with a $330,000 donation
to the Trust. This marked the 33rd contribution
to the non-profit’s operational expenses.
GenAc is proud to stand in solidarity with
Jamaica Environment Trust and its mandate to
protect Jamaica’s natural resources.
JAMAICA CANCER SOCIETY
In a demonstration of unwavering commitment
to raising awareness for breast cancer, the
GenAc team donated $100,000 to the Jamaica
Cancer Society. Continuing to live up to its core
values of responsibility and empathy, GenAc
celebrates over three years of dedicated
partnership with the non-profit organisation.
JET COASTAL CLEAN UP
The GenAc Insurance Company team proudly
joined hands with the Jamaica Environment
Trust (JET) for the annual International Coastal
Cleanup at the Palisadoes Go-Kart Track.
Committed to environmental sustainability,
the team played an active role in removing
plastic bottles and debris along the coastline
in efforts of restoring the beach environs back
to its natural state.
The team wore T-shirts and hats with the
message ‘Preserve Today, Protect Tomorrow’
to further emphasise the need to get involved.
Their participation reflects the Company’s
ongoing dedication to community service and
environmental protection, contributing to
global efforts to safeguard our oceans and
marine life for future generations.
CONCLUSION
In 2024, our strong commitment to
community development, environmental
sustainability made significant contributions
to various social causes. These efforts
reflect our Company’s core values of
responsibility, empathy, and dedication
to building a better nation. The diverse
activities, supported by enthusiastic staff
participation, underscore GenAc’s ongoing
mission to positively impact society
and lay a solid foundation for future
community engagement.
58
2 0 2 4 A N N U A L R E P O R T
Grade 1 students at Dunrobin Primary
School become immersed in illustrations
as GenAc representative Choye Chan-Scott
reads them a story and shows them a
page of the book selected for Read Across
Jamaica on May 7, 2024.
National Blood Transfusion Service, Blood
Donor Organiser Keishawna Pinnock (left)
checks in on GenAc’s Chief Information
Officer Lesley Miller (seated) and shares
common facts about blood type O donors
at the annual GenAc blood drive held on
June 12, 2024.
Marketing Associate Sha Vaughn
Rattigan (right); Drews Avenue
Primary and Infant School Principal
Dwayne Forbes (left) and Seprod
Foundation Executive Director Lisa D’Oyen (centre) engage in a lively
discussion about artificial intelligence (AI) technology in schools during The
Hour of Code learning session on December 4, 2024.
Lisa D’Oyen
(right), Executive
Director of the
Seprod Foun-
dation and Nola
Phillpotts-Brown
(left) General
Manager of
Chain of Hope
Jamaica share
a smile and a
thumbs up while
donating blood
at the annual
GenAc blood
drive held on
June 12, 2024.
GenAc’s Underwriting Supervisor - Motor,
Shandale Preddie engages students at the
Dunrobin Primary School in an interactive
session with Can You See Them by
Susanne Francis Brown in honour of Read
Across Jamaica Day 2024.
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2 0 2 4 A N N U A L R E P O R T
GenAc made its 33rd annual donation
to Jamaica Environment Trust (JET) on
February 7, 2023, at the Trust’s office on
Constant Spring Road in Kingston. GenAc
Chief Information Officer, Lesley Miller
(left) and JET CEO, Theresa Rodriguez-
Moodie (right) beam during the cheque
presentation.
Chardae Hanson (centre), Operations
and Facilities Supervisor at GenAc; and
Shavaughn Rattigan (right), Marketing
Associate at GenAc, present the Company’s
donation to Michael Leslie (left), Acting
Executive Director of the Jamaica Cancer
Society in support of cancer fighting
efforts on November 20, 2024.
Weighing the fruits of their labour!
The GenAc team celebrates a job
well done, collecting over 20 bags
of plastic bottles and debris totalling up to 12 lbs each for International
Coastal Cleanup along the Palisadoes Go-Kart Track on September 21, 2024.
Braving the
heat at the
Palisadoes
Go-Kart Track,
Shanique Hines
and Reneé
Stanford,
carefully gather
and sort the
various types of
plastic bottles
collected along
the shoreline.
The GenAc
staff members
were proud
participants
in the recent
International
Coastal
Cleanup activity
organised by
the Jamaica
Environment
Trust.
Honoured to be the designated recipient
of GenAc’s annual donation to the Jamaica
Down’s Syndrome Foundation, 13-year-old
foundation member, Denville Jennings
(left) bore his best smile. Making the
presentation on May 10, 2024 was GenAc
Marketing Associate, ShaVaughn Rattigan.
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2 0 2 4 A N N U A L R E P O R T
HEALTH AND WELLNESS
PROGRAMME
Focused on the welfare of our staff, throughout
2024, we hosted several initiatives aimed at
empowering healthy behaviour among staff
members.
On July 19, 2024, we hosted a High-Intensity
Interval
Training
(HIIT)
session
for
our
employees. Held in the GenAc Training Room at
the Company’s Half Way Tree Road head office,
employees had the unique opportunity to train
and learn targeted exercises under the expert
guidance of personal trainer, Carlington Sinclair
aka Prezzi Fitness.
EMANCIPENDENCE ‘CROCS UP’
CELEBRATION
The “Crocs Up: Emancipendence Celebration”
was a highly anticipated event that brought
together team members in a vibrant display
of unity and cultural pride. The event, held on
Friday, August 9, 2024, was a testament to
our commitment to fostering a positive and
engaging work environment through creative
expression and the arts.
The celebration featured a variety of activities,
including an inspiring live concert where
GenAc’s talented staff members took centre
stage, showcasing their skills in singing,
dancing, and the visual arts. The event’s theme,
“Jamaica: A Journey Through the Years,” was
brought to life through three captivating acts
that reflected the past, present, and future of
Jamaican culture.
ICWI PINK RUN/SAGICOR SIGMA
RUN/TL 5K WALK RUN
The GenAc staff passionately supported several
cause-inspired run/walk events throughout
2024. Cumulatively, over 80 GenAc registrants
attended the ICWI Pink Run, Sagicor Sigma Run
and the TL 5K Walk Run. Eager to participate and
spread awareness employees also participated
in a series of readiness exercises preparation
for the runs.
EMPLOYEE ENGAGEMENT
Fostering a healthy work environment
for our employees is central to us at
General Accident. As we welcomed
interns and new members to the team,
reaffirming our cultural ethos was
essential. This was achieved through
increased support of staff
engagement initiatives focused
on building camaraderie, personal
development and health and wellness.
61
2 0 2 4 A N N U A L R E P O R T
CONCLUSION
GenAc is proud to foster a positive and collaborative work environment that thrives on
celebrating the unique strengths of our employees. It is our goal to maintain a
respectful and welcoming workplace for current and future staff members.
After the workout is always a well-needed stretch. The GenAc
HIIT exercise class participants got a good one in during the
Health and wellness programme fitness session.
GenAc staff members perform a cultural number during the
staff staged Emancipendence celebration on August 9.
GenAc’s Margaret Lawrence, Payables
Supervisor and fitness trainer, Carlington
Sinclair (right) show off their gains after
the GenAc HIIT fitness session held for
employees at the Company’s Half Way
Tree Road office on July 19, 2024
This dancing duo showed off hidden
talents during the GenAC emancipendence
“Crocs Up” celebration.
62
2 0 2 4 A N N U A L R E P O R T
Arrival Day (Trinidad)
Divali (Trinidad)
Mother’s Day (Trinidad)
Scotiabank Women Against Breast Cancer 5K (Trinidad)
Barbados CSR
Christmas in July (Trinidad)
DISCLOSURE OF
SHAREHOLDINGS
66
2 0 2 4 A N N U A L R E P O R T
DISCLOSURE OF SHAREHOLDINGS
General Accident Insurance Company Jamaica Limited
TOP 10 SHAREHOLDERS as at December 31, 2024
SHAREHOLDER
NUMBER OF
UNITS
PERCENTAGE
MUSSON JAMAICA LIMITED
824,999,989
80.000
MAYBERRY JAMAICAN EQUITIES LTD.
24,621,410
2.388
QWI INVESTMENTS LTD.
12,000,000
1.164
PAM - POOLED EQUITY FUND
10,361,515
1.005
MICHAEL ANTHONY CONYERS
9,337,457
0.906
JCSD TRUSTEE SERVICES LIMITED A/C
BARITA UNIT TRUST CAPITAL GROWTH FUND
8,102,797
0.786
LANCEDALE FARQUHARSON
7,800,000
0.756
CHRISTOPHER BERRY
6,000,000
0.582
SAGICOR SELECT FUNDS LIMITED -
(CLASS B' SHARES) FINANCIAL
5,066,798
0.491
SHARON E. DONALDSON
4,750,715
0.461
67
2 0 2 4 A N N U A L R E P O R T
DIRECTORS
COMBINED
HOLDING
PERCENTAGE
MUSSON JAMAICA LTD.
824,999,989
80.000
Paul B. Scott
Melanie Subratie
SHARON DONALDSON
4,750,715
0.461
Junior Levine
GREGORY FOSTER
350,000
0.034
DUNCAN STEWART
2,475,190
0.240
Deborah Stewart
Diana Stewart
CHRISTOPHER NAKASH
1,698,020
0.165
NICHOLAS SCOTT
2,030,198
0.197
MATTHEW LYN
96,500
0.009
Jodi Lyn
LESLEY MILLER
355,795
0.035
Martin Miller et al
DISCLOSURE OF SHAREHOLDINGS
General Accident Insurance Company Jamaica Limited
SHAREHOLDINGS OF DIRECTORS & THEIR CONNECTED PARTIES as at December 31, 2024
68
2 0 2 4 A N N U A L R E P O R T
DISCLOSURE OF SHAREHOLDINGS
General Accident Insurance Company Jamaica Limited
SHAREHOLDINGS OF MANAGEMENT TEAM as at December 31, 2024
MANAGER
COMBINED
HOLDING
PERCENTAGE
MICHELLE ROBINSON
780,000
0.076
JAMALDA STANFORD
92,857
0.009
JANILLE JARRETT
25,000
0.002
CORPORATE
DATA
72
2 0 2 4 A N N U A L R E P O R T
DIRECTORS:
• PB. 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
COMPANY PROFILE
73
2 0 2 4 A N N U A L R E P O R T
JAMAICA
General Accident Insurance Company Jamaica Limited
Kingston & St. Andrew
58 Half Way Tree Road, Kingston 10
Telephone: (876) 929-8451
Email: info@genac.com
Montego Bay
Unit 8, Summit Business Center
Fairview, Montego Bay,
St. James
TRINIDAD & TOBAGO
General Accident Insurance Company Trinidad and Tobago Limited
36A Ariapita Avenue
Port of Spain, 170210
Trinidad, W.I.
Telephone: (868) 224-3622
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
CONTACT INFORMATION
74
2 0 2 4 A N N U A L R E P O R T
58 Half Way Tree Rd, Kgn 10
Head Office
17 Harbour Street, Port Antonio
Up of the Town, Unit 1
5 Murray Ave, Morant Bay, St. Thomas
Marlene Duffus
Dennis Brown
Anntonette Cowan-Palmer
Kadeem Henry
Stephanie Shaw
Shop 89, Portmore Pines Plaza
Debra Reid-Gibbs
Shop 4, Ken R Issacs Building
74 Main Street Ocho Rios, St. Ann
Cherrice Johnson-Brown
Unit 4, George’s Mall, 97 Great George Street,
Savannah-La-Mar
Rochelle Clarke
Unit 11, The Victory Building,
3-5 Fort Street Montego Bay
Oral Myles
Unit 8, Summit Business Center,
Fairview, Montego Bay
General Accident Branch
Marlene Whittingham
Jonelle Jenkins
Cornell Skervin
70 1/2 Molynes Road, Kingston 10
Barbara Samuels
11c Manchester Road, Mandeville
Shop 12, Soares Shopping Centre,
Junction, St. Elizabeth
Unit 4, 9 Fernleigh Avenue, May Pen
Caddine Williamson
Cosskeys, Manchester
Marsha Clarke-Bruce
Monica Blake-Elliott
Rickardo Mahon
LOCATIONS: JAMAICA
75
2 0 2 4 A N N U A L R E P O R T
Saint Lucy
Saint Peter
Saint Andrew
Saint Joseph
Saint Thomas
Saint John
Saint George
Saint Michael
Saint Philip
Christ Church
Saint
James
Suite 8, Dome Mall, Warrens
St. Michael BB22026
General Accident Insurance Company
(Barbados) Limited
LOCATION: BARBADOS
76
2 0 2 4 A N N U A L R E P O R T
526 Caroni Savannah Road, Charlieville
307 Southern Main Road, Cunupia
Multigen Insurance Services Ltd
36A Ariapita Avenue, Woodbrook
57 Ramsarran Street, Chaguanas
Suite 201 & 203, Ground Floor,
Cross Crossing Centre II, Cross Crossing
9A Guava Road, Point Fortin
Phoenix Estate Management Services Ltd
#12 Craignish Village , Princes Town
Wallum Insurance Services Ltd - Princes Town
1075 S.S. Erin Road, Debe
Naparima Mayaro Road, Mayaro
Wallum Insurance Services Ltd - Rio Claro
1 Ibis Avenue, San Juan
Unit 2-1 Aranguez Plaza,
Main Road, San Juan
Brydens Insurance Agency
Xtra Foods Plaza, O'Meara Road, Arima
207 Southern Main Road, Curepe
Tobago
Sangre Grande
Chaguanas
Couva-Tabaquite-Talparo
Rio Claro-Mayaro
Princes Town
Penal-
Debe
Siparia
Tunapuna-Piarco
Diego Martin
San Juan-
Laventille
POS
San Fernando
Point Fortin
Arima
LOCATIONS: TRINIDAD & TOBAGO
FINANCIAL
STATEMENTS
GENERAL ACCIDENT INSURANCE COMPANY JAMAICA LIMITED AS AT DECEMBER 31, 2024
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
79
80
86
87
88
90
92
93
94
95
97 - 188
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Comprehensive Income
Year ended 31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
86
Note
2024
$’000
2023
$’000
Insurance revenue
11,426,923
8,575,708
Insurance service expense
10
(6,839,471)
(5,637,217)
Net expenses from reinsurance contracts held
(4,338,601)
(2,242,385)
Insurance service results
248,851
696,106
Net Investment Income
11
411,700
340,797
Finance expense from insurance contracts issued
(105,156)
(118,275)
Finance (expense)/income from reinsurance contracts held
(3,068)
20,804
Net insurance and investment results
552,327
939,432
Other operating expenses
13
(497,085)
(486,504)
Other operating income
12
244,426
287,567
Profit before taxation
299,668
740,495
Taxation
15
(51,344)
(192,227)
Profit after taxation
248,324
548,268
Other Comprehensive Income, net of tax:
Items that may be subsequently reclassified to profit or loss
Changes in fair value of FVOCI investments
119,329
(25,107)
Foreign currency translation adjustments
69,422
23,222
Total Other Comprehensive Income
188,751
(1,885)
TOTAL COMPREHENSIVE INCOME
437,075
546,383
Net Profit Attributable to:
Owners of General Accident Insurance Company Jamaica Limited
241,333
540,176
Non-controlling interests
6,991
8,092
248,324
548,268
Total Comprehensive Income Attributable to:
Owners of General Accident Insurance Company Jamaica Limited
412,469
532,386
Non-controlling interests
36
24,606
13,997
437,075
546,383
Earnings per share
16
$0.23
$0.52
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Financial Position
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
87
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Changes in Equity
Year ended 31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
88
Note
Share
Capital
$’000
Capital
Reserves
$’000
Fair Value
Reserve
$’000
As at 1 January 2023
470,358
161,354
15,858
Comprehensive income:
Net profit for the year
-
-
-
Other comprehensive income
-
-
(25,107)
Total comprehensive
income
-
-
(25,107)
Transactions with owners
Dividends
17
-
-
-
Balance at 31 December
2023,
470,358
161,354
(9,249)
Comprehensive income:
Net profit for the year
-
-
-
Other comprehensive income
-
-
119,329
Total comprehensive
income
-
-
119,329
Transactions with owners
Dividends
17
-
-
-
Balance at 31 December
2024
470,358
161,354
110,080
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Changes in Equity
Year ended 31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
89
Translation
Reserve
$’000
Retained
Earnings
$’000
Non-Controlling
Interest
$’000
Total
$’000
36,713
2,630,139
349,788
3,664,210
-
540,176
8,092
548,268
17,317
-
5,905
(1,885)
17,317
540,176
13,997
546,383
-
(202,526)
-
(202,526)
54,030
2,967,789
363,785
4,008,067
-
241,333
6,991
248,324
51,807
-
17,615
188,751
51,807
241,333
24,606
437,075
-
(224,998)
-
(224,998)
105,837
2,984,124
388,391
4,220,144
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Cash Flows
Year ended 31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
90
Note
2024
$’000
2023
$’000
Cash Flows from Operating Activities
Profit after taxation
248,324
548,268
Adjustments for items not affecting cash:
Depreciation
27,30
161,526
172,985
Amortisation of intangible assets
28
6,184
14,100
Amortisation of investment premium
(1,253)
(1,958)
Finance charge
13,375
14,326
Gains on revaluation of real estate investment
11
-
(38,838)
Gains on sale of real estate investment
(2,218)
(24,000)
Gains on revaluation of investment property
11
(21,539)
-
Fair value losses on shares classified as FVTPL
11
(17,828)
2,869
Gains on sale of investments
11
(25,353)
-
Interest income
11
(298,691)
(231,914)
Dividend income
11
(28,826)
(27,267)
Gain on disposal of property and equipment
12
-
(1,165)
ECL on debt investments
-
(533)
Current taxation
15
101,809
172,554
Deferred taxation
15
(50,465)
19,673
Foreign exchange gains
(26,030)
(17,234)
59,015
601,866
Changes in operating assets and liabilities:
Insurance contract assets
20,063
6,477
Reinsurance contract assets
(1,037,365)
(54,352)
Insurance contract liabilities
1,823,725
293,719
Reinsurance contract liabilities
17,111
(41,296)
Other receivables
(215,347)
(335,680)
Other liabilities
531,696
(111,967)
Due from related parties
892
(285)
Cash generated from operations
1,199,790
358,482
Tax paid
(110,402)
(87,628)
Net cash provided by operating activities
1,089,388
270,854
Cash Flows from Investing Activities
Investments, net
130,356
179,319
Loans receivable
(275,369)
9,749
Lease receivables
25,834
21,587
Proceeds from disposal of real estate investment
230,969
-
Acquisition of property and equipment
27
(95,189)
(120,599)
Acquisition of investment property
(5,461)
Acquisition of intangibles
28
-
(19,173)
Proceeds from disposal of property and equipment
-
1,165
Dividend received
28,826
27,267
Interest received
304,452
250,404
Net cash provided by investing activities
344,418
349,719
Sub-total c/f
1,433,806
620,573
General Accident Insurance Company Jamaica Limited
Consolidated Statement of Cash Flows (Continued)
Year ended 31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
91
Note
2024
$’000
2023
$’000
Sub-total b/f
1,433,806
620,573
Cash Flows from Financing Activities
Lease payments
(59,031)
(110,547)
Dividends paid
17
(224,998)
(202,526)
Net cash used in financing activities
(284,029)
(313,073)
Increase in cash and cash equivalents
1,149,777
307,500
Effect of exchange rate changes on cash and cash equivalents
(82,990)
(14,213)
Cash and cash equivalents at beginning of year
1,079,591
786,304
CASH AND CASH EQUIVALENTS AT END OF THE YEAR
18
2,146,378
1,079,591
General Accident Insurance Company Jamaica Limited
Company Statement of Comprehensive Income
Year ended 31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
92
Note
2024
$’000
2023
$’000
Insurance revenue
8,693,904
6,752,418
Insurance service expense
10
(4,695,658)
(4,295,720)
Net expenses from reinsurance contracts held
(3,830,379)
(1,871,114)
Insurance service results
167,867
585,584
Net investment income
11
363,558
304,129
Finance expense from insurance contracts issued
(95,040)
(92,205)
Finance income from reinsurance contracts held
1,381
18,504
Net insurance and investment results
437,766
816,012
Other operating expenses
(341,631)
(363,796)
Other operating income
12
196,394
252,965
Profit before taxation
292,529
705,181
Taxation
15
(71,232)
(180,744)
Profit after taxation
221,297
524,437
Other comprehensive income, net of tax:
Items that may be subsequently reclassified to profit or loss
Changes in fair value of FVOCI investments
119,329
(25,107)
Total other comprehensive income
119,329
(25,107)
TOTAL COMPREHENSIVE INCOME
340,626
499,330
General Accident Insurance Company Jamaica Limited
Company Statement of Financial Position
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
93
General Accident Insurance Company Jamaica Limited
Company Statement of Changes in Equity
Year ended 31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
94
Note
Share
Capital
$’000
Capital
Reserves
$’000
Fair Value
Reserve
$’000
Retained
Earnings
$’000
Total
$’000
As at 1 January 2023
470,358
152,030
15,006
2,635,216
3,272,610
Comprehensive income:
Net profit for the year
-
-
-
524,437
524,437
Other comprehensive income
-
-
(25,107)
-
(25,107)
Total comprehensive income
-
-
(25,107)
524,437
499,330
Transactions with owners
Dividends
17
-
-
-
(202,526)
(202,526)
Balance at 31 December 2023
470,358
152,030
(10,101)
2,957,127
3,569,414
Comprehensive income:
Net profit for the year
-
-
-
221,297
221,297
Other comprehensive income
-
-
119,329
-
119,329
Total comprehensive income
-
-
119,329
221,297
340,626
Transactions with owners
Dividends
17
-
-
-
(224,998)
(224,998)
Balance at 31 December 2024
470,358
152,030
109,228
2,953,426
3,685,042
General Accident Insurance Company Jamaica Limited
Company Statement of Cash Flows
Year ended 31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
95
Note
2024
$’000
2023
$’000
Cash Flows from Operating Activities
Profit after taxation
221,297
524,437
Adjustments for items not affecting cash:
Depreciation
27,30
118,969
122,652
Amortisation of intangible assets
28
2,149
3,267
Amortisation of investment premium
(1,253)
(1,958)
Finance charge
11,051
12,206
Gains on revaluation of real estate investment
11
-
(38,838)
Gains on sale of real estate investment
(2,218)
-
Gains on revaluation of investment property
11
(21,539)
(24,000)
Fair value changes on shares classified as FVTPL
11
(17,828)
2,869
Gains on sale of investments
11
(25,353)
-
Interest income
11
(259,418)
(195,247)
Dividend income
11
(28,826)
(27,267)
ECL on debt investments
-
(533)
Current taxation
15
92,965
158,020
Deferred taxation
15
(21,733)
22,724
Foreign exchange losses
79,473
5,347
147,736
563,679
Changes in operating assets and liabilities:
Insurance contract assets
-
23,982
Reinsurance contract assets
(999,181)
(4,532)
Insurance contract liabilities
1,884,091
107,046
Reinsurance contract liabilities
-
(27,421)
Other receivables
(414,178)
(228,714)
Other liabilities
417,301
(52,976)
Due from/to related parties
(381,436)
(185,147)
Cash generated from operations
654,333
195,917
Tax paid and deducted at source
(98,740)
(96,015)
Net cash provided by operating activities
555,593
99,902
Cash Flows from Investing Activities
Investments, net
189,086
400,387
Loans receivable
(273,522)
-
Leases receivable
25,834
21,587
Acquisition of property and equipment
27
(74,519)
(96,344)
Acquisition of investment property
(5,461)
-
Acquisition of intangibles
-
(9,362)
Proceeds from disposal of investment property
230,969
-
Dividend received
28,826
27,267
Interest received
265,004
165,921
Net cash provided by investing activities
386,217
509,456
Sub-total c/f
941,810
609,358
General Accident Insurance Company Jamaica Limited
Company Statement of Cash Flows (Continued)
Year ended 31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
96
Note
2024
$’000
2023
$’000
Sub-total b/f
941,810
609,358
Cash Flows from Financing Activities
Lease payments
(54,863)
(89,279)
Dividends paid
17
(224,998)
(202,526)
Net cash used in financing activities
(279,861)
(291,805)
Increase in cash and cash equivalents
661,949
317,553
Effect of exchange rate changes on cash and cash equivalents
(82,990)
(14,213)
Cash and cash equivalents at beginning of year
661,040
357,700
CASH AND CASH EQUIVALENTS AT END OF THE YEAR (NOTE 18)
1,239,999
661,040
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
97
1. Identification and Activities
General Accident Insurance Company Jamaica Limited (the Company) is incorporated and domiciled in Jamaica
and listed on the Jamaica Stock Exchange. The company is an 80% subsidiary of Musson (Jamaica) Limited
(Musson). The registered office of the company is located at 58 Half-Way-Tree Road, Kingston 10. The company’s
parent company, Musson, is incorporated and domiciled in Jamaica.
The company is licensed to operate as a general insurance company under the Insurance Act, 2001. Its principal
activity is the underwriting of commercial and personal property and casualty insurance.
The company has two subsidiaries whose principal activities are also to provide property and casualty insurance
(Note 2(b)). The company together with its subsidiaries are referred to as ‘the Group’.
2. Summary of Material Accounting Policies
The principal financial accounting policies adopted in the preparation of these financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Basis of preparation
These financial statements have been prepared in accordance with and comply with International Financial
Reporting Standards (IFRS Accounting Standards) as issued by the International Accounting Standards
Board (IASB). The financial statements have been prepared under the historical cost convention as modified
by the revaluation of certain financial instruments carried at fair value.
The preparation of financial statements in conformity with IFRS Accounting Standards requires the use of
certain critical accounting estimates. It also requires management to exercise its judgement in the process of
applying the Group’s accounting policies. Although these estimates are based on management’s best
knowledge of current events and action, actual results could differ from those estimates. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements are disclosed in Note 7.
Accounting pronouncements effective in the year which are relevant to the Group’s operations.
Certain new standards, amendments and interpretations to existing standards have been published that
became effective during the current financial year and are relevant to the Group’s operations. The adoption
of these new pronouncements has impacted the Group as discussed below.
•
Amendment to IFRS 16, ‘Leases’ - Leases on sale and leaseback (effective for annual periods
beginning on or after 1 January 2024).
These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain
how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback
transactions where some or all the lease payments are variable lease payments that do not depend on
an index or rate are most likely to be impacted.
•
Amendment to IAS 1 – Non-current liabilities with covenants, (effective for annual periods
beginning on or after 1 January 2024).
These amendments clarify how conditions with which an entity must comply within twelve months after
the reporting period affect the classification of a liability. The amendments also aim to improve
information an entity provides related to liabilities subject to these conditions
•
Amendment to IAS 7 and IFRS 7, Supplier finance (effective for annual periods beginning on or
after 1 January 2024)
These amendments require disclosures to enhance the transparency of supplier finance arrangements
and their effects on an entity’s liabilities, cash flows and exposure to liquidity risk.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
98
2. Summary of Material Accounting Policies (Continued)
(a) Basis of preparation (continued)
Accounting pronouncements effective in the year which are relevant to the Group’s operations
(continued)
Sustainability disclosure standards effective in the current year
•
IFRS S1, General requirements for disclosure of sustainability related financial information and
S2, Climate related disclosures (effective for annual periods beginning on or after 1 January
2024)
S1 includes the framework for the disclosure of material information about sustainability related risks
and opportunities across an entity’s value chain. S2 sets out requirements for entities to disclose
information about climate-related risks and opportunities. While the standards are effective for periods
beginning on or after 1 January 2024, they are subject to endorsements by our local jurisdiction.
The adoption of the above standards and amendments to existing standards did not have a significant
impact on the financial statements.
Standards, interpretations and amendments to published standards that are not yet effective
At the date of authorisation of these financial statements, certain new standards, interpretations and
amendments to existing standards have been issued which are mandatory for the group’s accounting periods
beginning on or after 1 January 2025 or later periods but were not effective at the statement of financial
position date. The Group is still assessing the relevance and impact that will arise from adoption of all such
new standards, interpretations and amendments and has determined that the following, as shown below,
may be immediately relevant to its operations.
•
Amendments to IAS 21 - Lack of exchangeability (effective for annual periods beginning on or
after 1 January 2025).
An entity is impacted by the amendments when it has a transaction or an operation in a foreign
currency that is not exchangeable into another currency at a measurement date for a specified
purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a
normal administrative delay), and the transaction would take place through a market or exchange
mechanism that creates enforceable rights and obligations.
•
Amendment to IFRS 9 and IFRS 7 - Classification and measurement of financial instruments
(effective for annual periods beginning on or after 1 January 2026)
These amendments:
•
clarify the requirements for the timing of recognition and derecognition of some financial assets
and liabilities, with a new exception for some financial liabilities settled through an electronic cash
transfer system;
•
clarify and add further guidance for assessing whether a financial asset meets the solely payments
of principal and interest (SPPI) criterion;
•
add new disclosures for certain instruments with contractual terms that can change cash flows
(such as some instruments with features linked to the achievement of environment, social and
governance (ESG) targets); and
•
make updates to the disclosures for equity instruments designated at Fair Value through Other
Comprehensive Income (FVOCI).
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
99
2. Summary of Material Accounting Policies (Continued)
(a) Basis of preparation (continued)
Standards, interpretations and amendments to published standards that are not yet effective
(continued)
•
IFRS 18, ‘Presentation and Disclosure in Financial Statements’ (effective for annual periods
beginning on or after 1 January 2027).
This is the new standard on presentation and disclosure in financial statements, with a focus on updates
to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
•
the structure of the statement of profit or loss;
•
required disclosures in the financial statements for certain profit or loss performance
•
measures that are reported outside an entity’s financial statements (that is, management-defined
performance measures); and
•
enhanced principles on aggregation and disaggregation which apply to the primary financial
statements and notes in general.
•
IFRS 19, ‘Subsidiaries without Public Accountability: Disclosures’ (effective for annual periods
beginning on or after 1 January 2027).
This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the
requirements in other IFRS Accounting Standards except for the disclosure requirements and instead
applies the reduced disclosure requirements in IFRS 19. IFRS 19’s reduced disclosure requirements
balance the information needs of the users of eligible subsidiaries’ financial statements with cost savings
for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries.
A subsidiary is eligible if:
•
it does not have public accountability; and
•
it has an ultimate or intermediate parent that produces consolidated financial statements available
for public use that comply with IFRS Accounting Standards.
There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to
have a material impact on the Group
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
100
2. Summary of Material Accounting Policies (Continued)
(b) Basis of consolidation
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through power over the entity. Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are deconsolidated from the date that control ceases.
The Group applies the acquisition method to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred
to the former owners of the acquiree, and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability resulting from a contingent consideration
arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. The Group recognises any non-
controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-
controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit
or loss. Any contingent consideration to be transferred by the Group is recognised at fair value at the
acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be
an asset or liability is recognised in accordance with IFRS 9 either in profit or loss or as a change to other
comprehensive income. Contingent consideration that is classified as equity is not remeasured, and its
subsequent settlement is accounted for within equity.
Goodwill is initially measured as the excess of the aggregate of the consideration transferred, the amount of
any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest
over the fair value of the net identifiable assets acquired and liabilities assumed. If this consideration is lower
than the fair value of the net assets of the subsidiary acquired, the difference is recognised in profit or loss.
Inter-company transactions, balances, income and expenses on transactions between group companies are
eliminated. Profits and losses resulting from inter-company transactions that are recognised in assets are
also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity
transactions – that is, as transactions with the owners in their capacity as owners. The difference between
fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the
subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded
in equity.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
101
2. Summary of Material Accounting Policies (Continued)
(b) Basis of consolidation (continued)
When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at
the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value
is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an
associate, joint venture or financial asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the
related assets or liabilities. This may mean that amounts previously recognised in other comprehensive
income are reclassified to profit or loss.
The company’s subsidiaries are listed below, which together with the company are referred to as ‘the Group’
Entity
Country of
Incorporati
on and
place of
business
Nature of
business
Proportion of
ordinary shares
held by the Group
%
Proportion of
ordinary
shares held by
non-
controlling
interests%
General Accident Insurance
Company(Trinidad) Limited
Trinidad and
Tobago
General
Insurance
Services
75
25
General Accident Insurance
Company (Barbados) Limited
Barbados
General
Insurance
Services
80
20
In December 2023, the company increased its shareholding in General Accident Insurance Company
(Trinidad) Limited (GENACTT) from 65% to 75%.
(c) Revenue and income recognition
Revenue comprises the fair value of the consideration received or receivable for the provision of services in
the ordinary course of the Group’s activities. Revenue is shown net of General Consumption Tax and is
recognised as follows:
Premium income
The insurance revenue for the period is the amount of expected premium receipts (excluding any investment
component) allocated to the period. The Group allocates the expected premium receipts to each period of
insurance contract services on the basis of the passage of time.
Investment income
Investment income is accounted for on an accruals basis taking into account the effective yield of the asset
or an applicable floating rate and is shown net of direct investment expenses incurred in relation thereto. For
financial assets in stage 3, interest income is recognised on a net basis, that is interest income will be
calculated based on the gross carrying amount of the financial asset less ECL. Dividend income is recognised
when the right to receive payment is established in the financial period.
Dividend
Dividend income for equities is recognised when the right to receive payment is established.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
102
2. Summary of Material Accounting Policies (Continued)
(c) Revenue and income recognition (continued)
Rental income
Rental income is recognised on an accrual basis.
(d) Cash and cash equivalents
Cash and cash equivalents are short-term, highly liquid investments readily convertible to known amounts of
cash and subject to insignificant risks of change in value. These are shown at cost. For purposes of the cash
flow statement, cash and cash equivalents comprise balances with maturity dates of less than 90 days from
the dates of acquisition including cash and bank balances and deposits held on call with banks.
(e) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of the Group are measured using the currency of the primary
economic environment in which it operates (the functional currency). The financial statements are
presented in Jamaican dollars which is also the Group’s functional currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end exchange rates of monetary assets
and liabilities denominated in foreign currencies are recognised in profit or loss.
Changes in the fair value of monetary assets denominated in foreign currencies and classified at
amortised cost are analysed between translation differences resulting from changes in the amortised
cost of the asset and other changes. Translation differences resulting from the changes in amortised
cost are recognised in the profit or loss, and other changes are recognised in other comprehensive
income (OCI).
(f)
Financial instruments
Financial instruments carried on the statement of financial position include investments, due to and from related
parties, reinsurance assets, loans and other receivables, cash and short term investments, other liabilities and
insurance contract liabilities. The particular recognition methods adopted are disclosed in the individual policy
statements associated with each item. The fair values of the Group’s financial instruments are discussed in
Note 6.
(g) Financial assets
IFRS 9 has three classification categories for debt instruments: amortised cost, fair value through other
comprehensive income (‘FVOCI’) and fair value through profit or loss (‘FVPL’). Classification under IFRS 9
for debt instruments is based on the entity’s business model for managing the financial assets and whether
the contractual cash flows represent solely payments of principal and interest (‘SPPI’). An entity’s business
model is how an entity manages its financial assets to generate cash flows and create value for the entity.
That is, an entity’s business model determines whether the cash flows will result from collecting contractual
cash flows, selling financial assets or both. If a debt instrument is held to collect contractual cash flows, it is
classified as amortised cost if it also meets the SPPI requirement. Debt instruments that meet the SPPI
requirement that are held both to collect contractual cash flows and to sell the assets are classified as FVOCI.
Under the new model, FVPL is the residual category. Financial assets should therefore be classified as FVPL
if they do not meet the criteria of FVOCI or amortised cost.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
103
2. Summary Material Accounting Policies (Continued)
(h) Financial assets (continued)
(i) Classification
The Group classifies its financial assets in the following measurement categories:
•
At fair value (either through OCI or through profit or loss); and
•
At amortised cost.
The classification is based on the Group’s business model for managing the financial assets and the
contractual terms of the cash flows. For assets measured at fair value, gains and losses are recorded
in profit or loss or OCI. The Group will reclassify debt investments when and only when its business
model for managing those assets changes.
(ii) Recognition and derecognition
Purchases and sales of financial assets are recognised on trade-date, the date on which the Group
commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or have been transferred and the Group has
transferred substantially all the risks and rewards of ownership.
(iii) Measurement
At initial recognition, the Group measures a financial asset at its fair value plus transaction cost directly
attributable to the acquisition of the financial asset in the case of a financial asset not at fair value through
profit or loss (FVPL). Transaction costs that are directly attributable to the acquisition of the financial
asset carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether
their cash flows are solely payment of principal and interest.
Debt instruments
Subsequent measurement of debt instruments is based on the Group’s business model for managing
the asset and the cash flow characteristics of the asset. There are three measurement categories into
which the Group classifies its debt instruments:
•
Amortised cost - Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. Interest income
from these financial assets are included in investment income using the effective interest rate
method. Any gain or loss arising on derecognition is recognised directly in profit or loss and
presented in gains/(losses). Impairment losses are presented as separate line item in profit or loss.
•
FVOCI – Financial assets that are held for collection of contractual cash flows and for selling, where
the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI.
Movements in the carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interest income and foreign exchange gains and losses which are recognised in
profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to profit or loss and recognized in other gains/(losses).
Interest income from these financial assets is included in investment income using the effective
interest rate method. Foreign exchange gains and losses are presented in gains/(losses) and
impairment expenses are presented as separate line item in the statement of profit or loss.
•
FVPL - Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL.
Gains or losses on a debt investment that is subsequently measured at FVPL is recognised in profit
or loss and presented net within other gains/(losses) in the period in which it arises.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
104
2. Summary Material Accounting Policies (Continued)
(h.) Financial assets (continued)
(iii) Measurement (Continued)
Debt instruments
Loans are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. Loans are recognised initially at fair value and are subsequently carried at amortised cost
using the effective interest method, less provision for impairment. (See Note 2.f (iv) for the accounting
policy on impairment).
Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s management
has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent
reclassification of fair value gains and losses to profit or loss following the derecognition of the
investment. Dividends from such investments continue to be recognised in profit or loss when the
Group’s right to receive payment is established.
Changes in the fair value of financial assets at FVPL are recognised in gains/(losses) in profit or loss as
applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at
FVOCI are not reported separately from other changes in fair value.
(iv) Impairment
The Group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments carried at amortised cost (include cash and cash equivalent, excluding bank balances) and
FVOCI. The impairment methodology applied depends on whether there has been a significant increase
in credit risk.
At initial recognition, allowance (or provision in the case of some loan commitments) is required for ECL
resulting from default events that are possible within the next 12 months (or less, where the remaining
life is less than 12 months) (’12-month ECL’).
In the event of a significant increase in credit risk (SICR), an allowance (or provision) is required for ECL
resulting from all possible default events over the expected life of the financial instrument (‘lifetime ECL’).
Financial assets where 12-month ECL are recognised are defined as ‘stage 1’; financial assets which
are 30 days past due are considered to have experienced a significant increase in credit risk are in ‘stage
2’; and financial assets for which there is objective evidence of impairment are defined as being in default
or otherwise credit impaired are in ‘stage 3’.
To determine whether the life-time credit risk has increased significantly since initial recognition, the
Group considers reasonable and supportable information that is available including information from the
past and forward-looking information. Factors such as whether payments of principal and interest are in
default, an adverse change in credit rating of the borrower and adverse changes in the borrower’s
industry and economic environment are considered in determining whether there has been a significant
increase in the credit risk of the borrower.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
105
2. Summary Material Accounting Policies (Continued)
(h.) Financial assets (continued)
(iii) Impairment (continued)
The Group determines that a financial instrument is credit-impaired and in stage 3 by considering
relevant objective evidence, primarily whether:
•
Contractual payments of either principal or interest are past due for 90 days or more.
•
There are other indications that the borrower is unlikely to pay such as that a concession has been
granted to the borrower for economic or legal reasons relating to the borrower’s financial condition.
•
The financial asset is otherwise considered to be in default.
Expected credit losses are calculated by multiplying three main components, being the probability of
default (“PD”), loss given default (“LGD”) and the exposure at default (“EAD”), discounted at the original
effective interest rate. Management has calculated these inputs based on the historical experience of
the portfolios adjusted for the current point in time.
(i)
Receivables and payables related to insurance contracts
Receivables and payables related to insurance contracts are recognised when due. These include amounts
due to and from agents, brokers and insurance contract holders.
(j)
Leases
The Group’s leases originate from the rental agreements for various office buildings.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leases
asset is available for use by the Group.
Assets and liabilities arising from a lease are initially measured on a present value basis.
Lease liabilities include the net present value of the following lease payments:
i)
Fixed payments (including in-substance fixed payments), less any lease incentives receivables
ii) Variable lease payments that are based on an index or a rate
iii) Amounts expected to be payable by the lessee under residual value guarantees
iv) The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
v) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that
option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be
determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to
pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with
similar terms and conditions. To determine the incremental borrowing rate, the Group uses existing borrowing
rates from our existing banks, as no entity within the Group have existing borrowings.
The Group is exposed to potential future increases in variable lease payments based on an index or rate,
which are not included in the lease liability until they take effect. When adjustments to lease payments based
on an index or a rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit
or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
106
2. Summary of Material Accounting Policies (Continued)
(j) Leases (continued)
Right-of-use assets are measured at cost comprising the following:
▪
The amount of initial measurement of lease liability
▪
Any lease payments made at or before the commencement date less any lease incentives received
▪
Any initial direct costs, and
▪
Restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term
on a straight-line basis.
The lease term is determined as the non-cancellable period of the lease and takes account of extension and
termination options if it is reasonably certain to be exercised. Majority of extension and termination options
held are exercisable only by the Group and not by the respective lessor. The assessment of reasonable
certainty is only revised if a significant event or a significant change in circumstances occurs, which affects
this assessment, and that is within the control of the Group.
(k) Property and equipment
Land is stated at historical cost. All other property and equipment are stated at historical annual cost less
accumulated depreciation and impairment. Depreciation is computed on the straight-line method at rates
estimated to write off the assets over their expected useful lives as follows:
Buildings
5% and 2.5%
Furniture, fixtures and equipment
10%
Motor vehicles
20%
Property and equipment are reviewed periodically for impairment. Where the carrying amount of an asset is
greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount and are included
in operating profit.
Repairs and maintenance expenses are charged to profit or loss during the financial period in which they are
incurred. The cost of major renovations is included in the carrying amount of the asset when it is probable
that future economic benefits in excess of the originally assessed standard of performance of the existing
asset will flow to the Group. Major renovations are depreciated over the remaining useful life of the related
asset.
(l) Impairment of long-lived assets
Long-lived assets are reviewed for impairment losses whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which
the carrying amount of the asset exceeds its recoverable amount, which is the higher of an asset’s net selling
price and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
107
2. Summary of Material Accounting Policies (Continued)
(m) Intangible assets
Computer software
Acquired software licences are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software. These costs are amortised on the basis of the expected useful life, which is between three
to five years.
Renewal rights
Renewal rights are recorded at cost and represent the value of consideration paid to acquire policies in force
with high renewal probability. These costs are amortised over the estimated useful life of the rights, which
ranges from 4- 5 years.
Distribution relationships
Distribution relationships are recorded at cost and represent the value of consideration paid to acquire existing
intermediary distribution channels. These costs are amortised over the estimated useful life of these
relationships which is approximately 8 years.
Licences
Licences are recorded at cost and represent the value of consideration paid to acquire regulatory licence to
operate in a regulatory environment. Licences have an indefinite useful live and is assessed annually for
impairment and are carried at cost less accumulated impairment losses.
(n) Investment properties
Investment property comprise significant portions of freehold residential buildings that are held for long-term
rental yield and/or for capital appreciation.
Investment properties are treated as a long-term investment, initially recognized at cost and subsequently
carried at fair value, based on fair market valuation exercise conducted annually by independent qualified
values. Changes in fair values are recorded in the income statement.
(o) Real estate investment
Real estate investment represents the Group's beneficial interest in properties which are leased to third parties
and held in trust for a group of investors under a Trust Deed. The Group shares in the rental income from the
lease of properties as well as fair value appreciation on the properties based on valuations carried out by
independent valuators from time to time. The Group's share of lease income and appreciation is recorded in
the statement of comprehensive income.
(p) Other liabilities
Other liabilities are recognised at fair value and subsequently measured at amortised cost.
(q) Taxation
Taxation on the profit or loss for the year comprises current and deferred tax. Current and deferred taxes are
recognised as income tax expense or benefit in net profit or loss in the statement of comprehensive income
except where they relate to items recorded in other comprehensive income or equity, in which case they are
also charged or credited to other comprehensive income or equity.
(i) Current taxation
Current tax is the expected taxation payable on the taxable income for the year, using tax rates enacted
at date of the statement of financial position, and any adjustment to tax payable and tax losses in respect
of the previous years.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
108
2. Summary of Material Accounting Policies (Continued)
(q) Taxation (continued)
(ii) Deferred income taxes
Deferred tax liabilities are recognised for temporary differences between the carrying amounts of assets
and liabilities and their amounts as measured for tax purposes, which will result in taxable amounts in future
periods. Deferred tax assets are recognised for temporary differences which will result in deductible
amounts in future periods, but only to the extent it is probable that sufficient taxable profits will be available
against which these differences can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
which the asset will be realised or the liability will be settled based on enacted rates.
(r) Employee benefits
(i) Pension obligations
The Group participates in the defined contribution pension plan of a related company, T. Geddes Grant
(Distributors) Limited. A defined contribution pension plan is a pension plan under which the Group pays
fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee
service in the current and prior periods. The contributions paid by the Group are recorded as an expense in
profit or loss.
(ii) Accrued vacation
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made
for the estimated liability for annual leave as a result of services rendered by employees up to the date of the
statement of financial position.
(iii) Termination benefits
Termination benefits are payable whenever an employee’s employment is terminated before the normal
retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits.
The Group recognises termination benefits when it is demonstrably committed to either terminating the
employment of current employees according to a detailed formal plan without possibility of withdrawal or
providing termination benefits as a result of an offer made to encourage voluntary redundancy.
(iv) Profit-sharing and bonus plan
The Group recognises a liability and an expense for bonuses and profit-sharing, based on a formula that
takes into consideration the profit attributable to the Group’s shareholders after certain adjustments. The
Group recognises a provision where contractually obliged or where there is a past practice that has created
a constructive obligation.
(s) Dividend distribution
Dividend distribution to the Group’s shareholders is recognised as an appropriation in the Group’s financial
statements in the period in which the dividends are approved by the Board of Directors.
(t) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, which is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Board of Directors that
makes strategic decisions.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
109
2. Summary of Material Accounting Policies (Continued)
(u) Insurance and reinsurance contracts classification
The Group issues insurance contracts in the normal course of business, under which it accepts significant
insurance risk from its policyholders. As a general guideline, the Group determines whether it has significant
insurance risk, by comparing benefits payable after an insured event with benefits if the insured event did
not occur. Insurance contracts can also transfer financial risk. The Group issues non-life insurance to
individuals and businesses. Non-life insurance products offered include property (engineering, fire and
homeowners), personal accident, liability, marine and motor. These products offer protection of
policyholder’s assets and indemnification of other parties that have suffered damage as a result of
policyholder’s accident.
The Group also issues reinsurance contracts in the normal course of business to compensate other entities
for claims arising from one or more insurance contracts issued by those entities.
(v) Insurance and reinsurance contracts accounting treatment
i. Separating components from insurance and reinsurance contracts
The Group assesses its non-life insurance and reinsurance products to determine whether they contain
distinct components, the Group applied IFRS 17 to all remaining components of the (host) insurance
contract. Currently, the Company’s products do not include any distinct components that require
separation.
ii. Level of aggregation
IFRS 17 requires a company to determine the level of aggregation for applying its requirements. The
Group previously applied aggregation levels under IFRS 4, which were significantly higher than the level
of aggregation required by IFRS 17. The level of aggregation for the Group is determined firstly by dividing
the business written into portfolios. Portfolios comprise groups of contracts with similar risks which are
managed together. Portfolios are further divided based on expected profitability at inception into three
categories: onerous contracts, contracts with no significant risk of becoming onerous, and the remainder.
This means that, for determining the level of aggregation, the Group identifies a contract as the smallest
‘unit’, i.e. the lowest common denominator.
However, the Group makes an evaluation of whether a series of contracts need to be treated together as
one unit based on reasonable and supportable information, or whether a single contract contains
components that need to be separated and treated as if they were stand-alone contracts. As such, what
is treated as a contract for accounting purposes may differ from what is considered as a contract for other
purposes (i.e. legal or management).
The Group has elected to group together those contracts that would fall into different groups only because
law or regulation specifically constrains its practical ability to set a different price or level of benefits for
policyholders with different characteristics.
The Group applied a full retrospective approach for transition to IFRS 17. The portfolios are further divided
by year of issue and profitability for recognition and measurement purposes. Hence, within each year of
issue, portfolios of contracts are divided into three groups, as follows:
a. A group of contracts that are onerous at initial recognition
b. A group of contracts that, at initial recognition, have no significant possibility of becoming onerous
subsequently
c. A group of the remaining contracts in the portfolio
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
110
2. Summary of Material Accounting Policies (Continued)
(v) Insurance and reinsurance contracts accounting treatment (continued)
ii. Level of aggregation (continued)
The profitability of groups of contracts is assessed by actuarial valuation models that take into
consideration existing and new business. The Group assumes that no contracts in the portfolio are onerous
at initial recognition unless facts and circumstances indicate otherwise. For contracts that are not onerous,
the Group assesses, at initial recognition, that there is no significant possibility of becoming onerous
subsequently by assessing the likelihood of changes in applicable facts and circumstances. The Group
considers facts and circumstances to identify whether a group of contracts are onerous based on:
a. Pricing information
b. Results of similar contracts it has recognised
c. Environmental factors, e.g. a change in the market experience or regulations
The Group divides portfolios of reinsurance contracts held applying the same principles set out above
except that the references to onerous contracts refer to contracts on which there is a net gain on initial
recognition. For some groups of reinsurance contracts held, a group can comprise a single contract.
iii. Recognition
The Group recognises groups of insurance contracts it issues from the earliest of the following:
a. The beginning of the coverage period of the group of contracts
b. The date when the first payment from a policyholder in the group is due or when the first payment
is received if there is no due date
c. For a group of onerous contracts, if facts and circumstances indicate that the group is onerous
The Group recognises a group of reinsurance contracts held it has entered into from the earlier of the
following:
a. The beginning of the coverage period of the group of reinsurance contracts held. However, the
Group delays the recognition of a group of reinsurance contracts held that provide proportionate
coverage until the date any underlying insurance contract is initially recognised, if that date is later
than the beginning of the coverage period of the group of reinsurance contracts held; and
b. The date the Group recognises an onerous group of underlying insurance contracts if the Group
entered into the related reinsurance contract held in the group of reinsurance contracts held at or
before the date.
The Group adds new contracts to the group in the reporting period in which that contract meets one of
the criteria set out above.
iv. Contract boundary
The Group includes in the measurement of a group of insurance contracts all the future cash flows within
the boundary of each contract in the group. Cash flows are within the boundary of an insurance contract
if they arise from substantive rights and obligations that exist during the reporting period in which the
Group can compel the policyholder to pay the premiums, or in which the Group has a substantive
obligation to provide the policyholder with insurance contract services. A substantive obligation to
provide insurance contract services ends when:
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
111
2. Summary of Material Accounting Policies (Continued)
(v) Insurance and reinsurance contracts accounting treatment (continued)
iv. Contract boundary (continued)
a. The Group has the practical ability to reassess the risks of the particular policyholder and, as a result,
can set a price or level of benefits that fully reflects those risks; or
b. Both of the following criteria are satisfied:
•
The Group has the practical ability to reassess the risks of the portfolio of insurance contracts
that contain the contract and, as a result, can set a price or level of benefits that fully reflects
the risk of that portfolio; and
•
The pricing of the premiums up to the date when the risks are reassessed does not take into
account the risks that relate to periods after the reassessment date.
A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract
is not recognised. Such amounts relate to future insurance contracts.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
112
2. Summary of Material Accounting Policies (Continued)
(v) Insurance and reinsurance contracts accounting treatment (continued)
v.
Measurement – Premium Allocation Approach
IFRS 17 Options
Adopted Approach
Premium Allocation Approach
(PAA) Eligibility
Subject to specified criteria, the PAA
can be adopted as a simplified
approach to the IFRS 17 general
model
Coverage period for property
insurance and liability reinsurance
assumed is one year or less and so
qualifies automatically for PAA. Both
marine and personal accident
insurance include contracts with
coverage period greater than one year.
However, there is no material
difference in the measurement of the
liability for remaining coverage
between PAA and the general model,
therefore, these qualify for PAA.
Insurance acquisition cash
flows for insurance contracts
issued
Where the coverage period of all
contracts within a group is not longer
than one year, insurance acquisition
cash flows can either be expensed as
incurred, or allocated, using a
systematic and rational method, to
groups of insurance contracts (including
future groups containing insurance
contracts that are expected to arise
from renewals) and then amortised over
the coverage period of the related
group.
For groups containing contracts longer
than one year, insurance acquisition
cash flows must be allocated to related
groups of insurance contracts and
amortised over the coverage period of
the related group
For all business, insurance acquisition
cash flows are allocated to related
groups of insurance contracts and
amortised over the coverage period of
the related group.
Liability for Remaining
Coverage (LRC), adjusted for
financial risk and time value of
money
Where there is no significant financing
component in relation to the LRC, or
where the time between providing each
part of the services and the related
premium due date is no more than a
year, an entity is not required to make
an adjustment for accretion of interest
on the LRC.
For all business, there is no allowance
as the premiums are received within
one year of the coverage period.
Liability for Incurred Claims,
(LIC) adjusted for time value of
money
Where claims are expected to be paid
within a year of the date that the claim
is incurred, it is not required to adjust
these amounts for the time value of
money.
For some claims within the property
product line, the incurred claims are
expected to be paid out in less than one
year. Hence, no adjustment is made for
the time value of money. For all other
business, the LFIC is adjusted for the
time value of money and financial risk
related to these cashflows.
Insurance finance income and
expense
There is an option to disaggregate part
of the movement in LFIC resulting from
changes in discount rates and present
this in OCI.
For the personal accident product line,
the impact on LIC of changes in
discount rates will be captured within
OCI, in line with the accounting for
assets backing this product line.
For all other business, the change in
LIC as a result of changes in discount
rates will be captured within profit or
loss.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
113
2. Summary of Material Accounting Policies (Continued)
(v) Insurance and reinsurance contracts accounting treatment (continued)
v.
Measurement – Premium Allocation Approach (continued)
(a) Insurance contracts – initial measurement
The Group applies the premium allocation approach (PAA) to all the insurance contracts that it issues
and reinsurance contracts that it holds, as:
•
The coverage period of each contract in the group is one year or less, including insurance
contract services arising from all premiums within the contract boundary; or
•
For contracts longer than one year, the Group has modelled possible future scenarios and
reasonably expects that the measurement of the liability for remaining coverage for the group
containing those contracts under the PAA does not differ materially from the measurement that
would be produced applying the general model. In assessing materiality, the Group has also
considered qualitative factors such as the nature of the risk and types of its lines of business.
Where facts and circumstances indicate that contracts are onerous at initial recognition, the Group
performs additional analysis to determine if a net outflow is expected from the contract. Such onerous
contracts are separately grouped from other contracts and the Group recognises a loss in profit or loss
for the net outflow, resulting in the carrying amount of the liability for the group being equal to the fulfilment
cash flows. A loss component is established by the Group for the liability for remaining coverage for such
onerous group depicting the losses recognised.
(b) Reinsurance contracts held – initial measurement
The Group measures its reinsurance assets for a group of reinsurance contracts that it holds on the
same basis as insurance contracts that it issues. However, they are adapted to reflect the features
of reinsurance contracts held that differ from insurance contracts issued, for example the generation
of expenses or reduction in expenses rather than revenue.
Where the Group recognises a loss on initial recognition of an onerous group of underlying insurance
contracts or when further onerous underlying insurance contracts are added to a group, the Group
establishes a loss-recovery component of the asset for remaining coverage for a group of
reinsurance contracts held depicting the recovery of losses.
The Group calculates the loss-recovery component by multiplying the loss recognised on the
underlying insurance contracts and the percentage of claims on the underlying insurance contracts
the Group expects to recover from the group of reinsurance contracts held. The Group uses a
systematic and rational method to determine the portion of losses recognised on the group to
insurance contracts covered by the group of reinsurance contracts held where some contracts in the
underlying group are not covered by the group of reinsurance contracts held.
The loss-recovery component adjusts the carrying amount of the asset for remaining coverage.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
114
2. Summary of Material Accounting Policies (Continued)
(v) Insurance and reinsurance contracts accounting treatment (continued)
v.
Measurement – Premium Allocation Approach (continued)
(c) Insurance contracts – subsequent measurement
The Group measures the carrying amount of the liability for remaining coverage at the end of each
reporting period as the liability for remaining coverage at the beginning of the period:
•
Plus premiums received in the period
•
Minus insurance acquisition cash flows, with the exception of property insurance product line for
which the Group chooses to expense insurance acquisition cash flows as they occur
•
Plus any amounts relating to the amortisation of the insurance acquisition cash flows recognised
as an expense in the reporting period for the group
•
Plus any adjustment to the financing component, where applicable
•
Minus the amount recognised as insurance revenue for the services provided in the period
•
Minus any investment component paid or transferred to the liability for incurred claims
The Group estimates the liability for incurred claims as the fulfilment cash flows related to incurred
claims. The fulfilment cash flows incorporate, in an unbiased way, all reasonable and supportable
information available without undue cost or effort about the amount, timing and uncertainty of those
future cash flows, they reflect current estimates from the perspective of the Group, and include an
explicit adjustment for non-financial risk (the risk adjustment). The Group does not adjust the future
cash flows for the time value of money and the effect of financial risk for the measurement of liability
for incurred claims that are expected to be paid within one year of being incurred.
Where, during the coverage period, facts and circumstances indicate that a group of insurance
contracts is onerous, the Group recognises a loss in profit or loss for the net outflow, resulting in the
carrying amount of the liability for the group being equal to the fulfilment cash flows. A loss component
is established by the Group for the liability for remaining coverage for such onerous group depicting
the losses recognised.
Insurance acquisition cash flows are allocated on a straight-line basis as a portion of premium to profit
or loss (through insurance revenue).
(d) Reinsurance contracts held – subsequent measurement
The subsequent measurement of reinsurance contracts held follows the same principles as those for
insurance contracts issued and has been adapted to reflect the specific features of reinsurance held.
Where the Group has established a loss-recovery component, the Group subsequently reduces the
loss- recovery component to zero in line with reductions in the onerous group of underlying insurance
contracts in order to reflect that the loss-recovery component shall not exceed the portion of the
carrying amount of the loss component of the onerous group of underlying insurance contracts that
the entity expects to recover from the group of reinsurance contracts held.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
115
2. Summary of Material Accounting Policies (Continued)
(v) Insurance and reinsurance contracts accounting treatment (continued)
v.
Measurement – Premium Allocation Approach (continued)
(e) Insurance acquisition cash flows
Insurance acquisition cash flows arise from the costs of selling, underwriting and starting a group of
insurance contracts (issued or expected to be issued) that are directly attributable to the portfolio of
insurance contracts to which the group belongs.
With the exception of the property insurance product line, for which the Group chooses to expense
insurance acquisition cash flows as they occur, the Group uses a systematic and rational method to
allocate:
•
Insurance acquisition cash flows that are directly attributable to a group of insurance
contracts:
o
to that group; and
o
to groups that include insurance contracts that are expected to arise from the renewals of
the insurance contracts in that group.
• Insurance acquisition cash flows directly attributable to a portfolio of insurance contracts that
are not directly attributable to a group of contracts, to groups in the portfolio.
Where insurance acquisition cash flows have been paid or incurred before the related group of
insurance contracts is recognised in the statement of financial position, a separate asset for insurance
acquisition cash flows is recognised for each related group.
The asset for insurance acquisition cash flow is derecognised from the statement of financial position
when the insurance acquisition cash flows are included in the initial measurement of the related group
of insurance contracts.
At the end of each reporting period, the Group revises amounts of insurance acquisition cash flows
allocated to groups of insurance contracts not yet recognised, to reflect changes in assumptions
related to the method of allocation used.
After any re-allocation, the Group assesses the recoverability of the asset for insurance acquisition
cash flows, if facts and circumstances indicate the asset may be impaired. When assessing the
recoverability, the Group applies:
•
An impairment test at the level of an existing or future group of insurance contracts; and
•
An additional impairment test specifically covering the insurance acquisition cash flows
allocated to expected future contract renewals.
If an impairment loss is recognised, the carrying amount of the asset is adjusted and an impairment
loss is recognised in profit or loss.
The Group recognises in profit or loss a reversal of some or all of an impairment loss previously
recognised and increases the carrying amount of the asset, to the extent that the impairment
conditions no longer exist or have improved.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
116
2. Summary of Material Accounting Policies (Continued)
(v) Insurance and reinsurance contracts accounting treatment (continued)
v.
Measurement – Premium Allocation Approach (continued)
(f) Insurance contracts – modification and derecognition
The Group derecognises insurance contracts when:
•
The rights and obligations relating to the contract are extinguished (i.e., discharged, cancelled
or expired); or
•
The contract is modified such that the modification results in a change in the measurement
model or the applicable standard for measuring a component of the contract, substantially
changes the contract boundary, or requires the modified contract to be included in a different
group. In such cases, the Group derecognises the initial contract and recognises the modified
contract as a new contract
When a modification is not treated as a derecognition, the Group recognises amounts paid or received
for the modification with the contract as an adjustment to the relevant liability for remaining coverage.
vi. Presentation
The Group has presented separately, in the statement of financial position, the carrying amount of
portfolios of insurance contracts issued that are assets, portfolios of insurance contracts issued that are
liabilities, portfolios of reinsurance contracts held that are assets and portfolios of reinsurance contracts
held that are liabilities.
Any assets for insurance acquisition cash flows recognised before the corresponding insurance contracts
are included in the carrying amount of the related groups of insurance contracts are allocated to the
carrying amount of the portfolios of insurance contracts that they relate to.
The Group disaggregates the total amount recognised in the statement of profit or loss and other
comprehensive income into an insurance service result, comprising insurance revenue and insurance
service expense, and insurance finance income or expenses.
The Group does not disaggregate the change in risk adjustment for non-financial risk between a financial
and non-financial portion and includes the entire change as part of the insurance service result.
The Group separately presents income or expenses from reinsurance contracts held from the expenses
or income from insurance contracts issued.
(a) Insurance revenue
The insurance revenue for the period is the amount of expected premium receipts (excluding any
investment component) allocated to the period. The Group allocates the expected premium receipts
to each period of insurance contract services on the basis of the passage of time. But if the expected
pattern of release of risk during the coverage period differs significantly from the passage of time,
then the allocation is made on the basis of the expected timing of incurred insurance service
expenses.
The Group changes the basis of allocation between the two methods above as necessary, if facts
and circumstances change. The change is accounted for prospectively as a change in accounting
estimate.
For the periods presented, all revenue has been recognised on the basis of the passage of time.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
117
2. Summary of Material Accounting Policies (Continued)
(v) Insurance and reinsurance contracts accounting treatment (continued)
vi. Presentation (continued)
(b) Loss components
The Group assumes that no contracts are onerous at initial recognition unless facts and circumstances
indicate otherwise. Where this is not the case, and if at any time during the coverage period, the facts
and circumstances indicate that a group of insurance contracts is onerous, the Group establishes a
loss component as the excess of the fulfilment cash flows that relate to the remaining coverage of the
group over the carrying amount of the liability for remaining coverage of the group. Accordingly, by the
end of the coverage period of the group of contracts the loss component will be zero.
(c) Loss-recovery components
As described in section 2.(y)(vii)(b) above, where the Group recognises a loss on initial recognition of
an onerous group of underlying insurance contracts, or when further onerous underlying insurance
contracts are added to a group, the Group establishes a loss-recovery component of the asset for
remaining coverage for a group of reinsurance contracts held depicting the expected recovery of the
losses.
A loss-recovery component is subsequently reduced to zero in line with reductions in the onerous
group of underlying insurance contracts in order to reflect that the loss-recovery component shall not
exceed the portion of the carrying amount of the loss component of the onerous group of underlying
insurance contracts that the entity expects to recover from the group of reinsurance contracts held.
(d) Insurance finance income and expense
Insurance finance income or expenses comprise the change in the carrying amount of the group of
insurance contracts arising from:
•
The effect of the time value of money and changes in the time value of money; and
•
The effect of financial risk and changes in financial risk.
The Group disaggregates insurance finance income or expenses on insurance contracts issued for its
personal accident product line between profit or loss and OCI. The impact of changes in market interest
rates on the value of the insurance assets and liabilities are reflected in OCI in order to minimise
accounting mismatches between the accounting for financial assets and insurance assets and
liabilities. The Group’s financial assets backing the personal accident insurance portfolios are
predominantly measured FVOCI. For all other business, the Group does not disaggregate finance
income and expenses because the related financial
assets are managed on a fair value basis and measured at FVPL.
(e) Net income or expense from reinsurance contracts held
The Group presents separately on the face of the statement of profit or loss and other comprehensive
income, the amounts expected to be recovered from reinsurers, and an allocation of the reinsurance
premiums paid. The Group treats reinsurance cash flows that are contingent on claims on the
underlying contracts as part of the claims that are expected to be reimbursed under the reinsurance
contract held and excludes investment components and commissions from an allocation of reinsurance
premiums presented on the face of the statement of comprehensive income.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
118
3. Responsibilities of the Appointed Actuary and External Auditors
The Board of Directors, pursuant to the Insurance Act, appoints the Actuary. His responsibility is to carry out an
annual valuation of the Group’s claims liabilities and insurance reserves in accordance with accepted actuarial
practice and regulatory requirements and report thereon to the shareholders. In performing the valuation, the Actuary
analyses past experience with respect to number of claims, claims payment and changes in estimates of outstanding
liabilities.
The shareholders, pursuant to the Companies Act, appoint the external auditors. Their responsibility is to conduct
an independent and objective audit of the financial statements in accordance with International Standards on
Auditing and report thereon to the shareholders. In carrying out their audit, the auditors also make use of the work
of the appointed Actuary and his report on claims liabilities and insurance reserves.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
119
4. Insurance and Financial Risk Management
(a) Insurance risk
The Group’s activities expose it to a variety of insurance and financial risks and those activities necessitate
the analysis, evaluation, control and/or acceptance of some degree of risk or combination of risks. Taking
various types of risk is core to the financial services business and operational risks are an inevitable
consequence of being in business. The Group’s aim is therefore to achieve an appropriate balance between
risk and return and minimise potential adverse effects on the Group’s financial performance.
The Board of Directors is ultimately responsible for the establishment and oversight of the risk management
framework. The Board of Directors has established committees and departments for managing and monitoring
risks, as follows:
(i) Investment and Loan Committee
The Investment and Loan Committee is responsible for monitoring and approving investment strategies
for the Group.
(ii) Finance Department
The Finance Department is responsible for managing the Group’s assets and liabilities and the overall
financial structure. It is also primarily responsible for managing the funding and liquidity risks of the
Group.
(iii) Conduct Review Committee
The Conduct Review Committee is responsible for monitoring the Group’s adherence to regulatory and
statutory requirements.
(iv) Audit Committee
The Audit Committee oversees how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework in
relation to the risks faced by the Group.
(v) Remuneration Committee
The remuneration committee is responsible for reviewing and recommending for approval, the
remuneration arrangements of the directors and senior officers.
The Group issues contracts that transfer insurance risk. This section summarises these risks and the way
the Group manages them.
The risk under any one insurance contract is the possibility that the insured event occurs and the uncertainty
of the amount of the resulting claim. By the very nature of an insurance contract, this risk is random and
therefore unpredictable.
The principal risk that the Group faces under its insurance contracts is that the actual claim payments exceed
the carrying amount of the insurance liabilities. This could occur because the frequency or severity of claims
and benefits are greater than estimated. Insurance events are random and the actual number and amount of
claims and benefits will vary from year to year from the level established using statistical techniques.
The Group principally issues the following types of non-life insurance contracts: Engineering; Fire; General
Accident; Liability; Marine; and Motor. The most significant risks arise from climate changes, natural disasters
and terrorist activities. For longer tail claims that take some years to settle, there is also inflation risk.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
120
4. Insurance and Financial Risk Management (Continued)
(a) Insurance risk (continued)
The objective of the Group is to ensure that sufficient reserves are available to cover the liabilities associated
with these insurance and reinsurance contracts that it issues. The risk exposure is mitigated by diversification
portfolios across the insurance contracts. The variability of risks is also improved by careful selection and
implementation of underwriting strategy guidelines, as well as the use of reinsurance held arrangements.
Furthermore, strict claim review policies to assess all new and ongoing claims, regular detailed review of claims
handling procedures and frequent investigation of possible fraudulent claims are established to reduce the risk
exposure of the Group. The Group further enforces a policy of actively managing and promptly settling claims,
in order to reduce its exposure to unpredictable future developments that can negatively impact the business.
Inflation risk is mitigated by taking expected inflation into account when estimating insurance contract liabilities
and pricing appropriately. The Group also purchases reinsurance as part of its risk mitigation programme.
Amounts recoverable from reinsurers are estimated in a manner consistent with underlying insurance contract
liabilities and in accordance with the reinsurance contracts. Although the Group has reinsurance arrangements,
it is not relieved of its direct obligations to its policyholders and thus a credit exposure exists with respect to
reinsurance held, to the extent that any reinsurer is unable to meet its obligations. The Group’s placement of
reinsurance is diversified such that it is neither dependent on a single reinsurer nor are the operations of the
Group substantially dependent upon any single reinsurance contract.
The following table show the concentration of net insurance contract liabilities by type of contract:
The Group
$’000
2024
2023
Insurance
Reinsurance
held
Net
Insurance
Reinsurance
held
Net
Engineering
186,857
90,068
96,789
124,869
159,076
(34,207)
Fire
1,378,761
926,293
452,468
104,649
337,805
(233,156)
General Accident
107,217
52,184
55,033
89,689
79,316
10,373
Liability
183,497
87,102
96,395
291,518
50,346
241,172
Marine
47,737
22,475
25,262
8,878
11,679
(2,801)
Motor
2,760,795
972,357
1,788,438
2,992,591
864,788
2,127,803
Gross amount
4,664,864
2,150,479
2,514,385
3,612,194
1,503,010
2,109,184
The Company
$’000
2024
2023
Insurance
Reinsurance
held
Net
Insurance
Reinsurance
held
Net
Engineering
172,038
83,367
88,671
123,383
152,344
(28,961)
Fire
1,276,810
624,544
652,266
80,204
298,665
(218,461)
General Accident
101,702
49,290
52,412
87,855
72,839
15,016
Liability
172,472
83,651
88,821
284,275
49,603
234,672
Marine
45,880
22,220
23,660
5,721
11,238
(5,517)
Motor
1,678,018
854,524
823,494
2,019,236
773,430 1,245,806
Gross amount
3,446,920
1,717,596
1,729,324
2,600,674
1,358,119 1,242,555
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
121
4. Insurance and Financial Risk Management (Continued)
(a) Insurance risk (continued)
Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative variability
about the expected outcome will be. In addition, a more diversified portfolio is less likely to be affected across
the board by a change in any subset of the portfolio. The Group has developed its insurance underwriting
strategy to diversify the types of insurance risks accepted to achieve a sufficiently large population of risks to
reduce the variability of the expected outcome.
Factors that increase insurance risk include lack of risk diversification in terms of type and amount of risk and
geographical location.
Management maintains an appropriate balance between commercial and personal policies and type of policies
based on guidelines set by the Board of Directors. Insurance risk arising from the Group’s insurance contracts
are, however, concentrated within Jamaica, Trinidad and Tobago and Barbados.
The Group has the right to re-price the risk on renewal. It also has the ability to impose deductibles and reject
fraudulent claims. Where applicable, contracts are underwritten by reference to the commercial replacement
value of the properties or other assets and contents insured. Claims payment limits are always included to cap
the amount payable on occurrence of the insured event. The cost of rebuilding properties, of replacement or
indemnity for other assets and contents and time taken to restart operations for business interruption are the
key factors that influence the level of claims under these policies.
Claims on insurance contracts are payable on a claims-occurrence basis. The Group is liable for all insured
events that occurred during the term of the contract, even if the loss is discovered after the end of the contract
term. This is however subject to the policy limit. Liability claims are settled over a long period of time and a
portion of the claims provision relates to incurred but not reported (IBNR) claims. There are several variables
that affect the amount and timing of cash flows from these contracts. These mainly relate to the inherent risks
of the business activities carried out by individual contract holders and the risk management procedures they
adopted. The compensation paid on these contracts is the monetary awards granted for bodily injury suffered
by employees (for employer’s liability covers) or members of the public (for public liability covers). Such awards
are lump-sum payments that are calculated as the present value of the lost earnings and rehabilitation
expenses that the injured party will incur as a result of the accident.
The estimated cost of claims includes direct expenses to be incurred in settling claims, net of the expected
subrogation value and other recoveries. The Group takes all reasonable steps to ensure that it has appropriate
information regarding its claims exposures. However, given the uncertainty in establishing the claims
provisions, it is likely that the final outcome will prove to be different from the original liability established. The
liability for these contracts comprises a provision for IBNR, a provision for reported claims not yet paid and a
provision for unexpired risks at the date of financial position. The amount of casualty claims is particularly
sensitive to the level of court awards and to the development of legal precedent on matters of contract and tort.
Casualty contracts are also subject to the emergence of new types of latent claims, but no allowance is included
for this at the date of the statement of financial position.
In calculating the estimated cost of unpaid claims (both reported and not), the Group uses estimation
techniques that are a combination of loss-ratio-based estimates (where the loss ratio is defined as the ratio
between the ultimate cost of insurance claims and insurance premiums earned in a particular financial year
in relation to such claims) and an estimate based upon actual claims experience using predetermined
formulae where greater weight is given to actual claims experience as time passes.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
122
4. Insurance and Financial Risk Management (Continued)
(a) Insurance risk (continued)
The initial loss-ratio estimate is an important assumption in the estimation technique and is based on previous
years’ experience, adjusted for factors such as premium rate changes, anticipated market experience and
historical claims inflation. The initial estimate of the loss ratios used for the current year (before reinsurance) is
analysed by type of risk for current and prior year premiums earned.
The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost
of settling claims already notified to the Group, where information about the claim event is available. IBNR
claims may not be apparent to the insured until many years after the event that gave rise to the claims. For
casualty contracts, the IBNR proportion of the total liability is high and will typically display greater variations
between initial estimates and final outcomes because of the greater degree of difficulty of estimating these
liabilities.
In estimating the liability for the cost of reported claims not yet paid, the Group considers any information
available from loss adjusters and information on the cost of settling claims with similar characteristics in
previous periods. Large claims are assessed on a case-by-case basis or projected separately in order to
allow for the possible distortive effect of their development and incidence on the rest of the portfolio.
Management sets policy and retention limits based on guidelines set by the Board of Directors. The policy limit
and maximum net retention of any one risk for each class of insurance for the year are as follows:
2024
2023
Policy
Limit
’000
Maximum
Net
Retention
’000
Policy
Limit
’000
Maximum
Net
Retention
’000
Jamaica
Commercial property –
Fire and consequential loss
US$8,000
US$1,600
US$8,000
US$1,600
Personal property
US$8,000
US$800
US$8,000
US$800
Engineering
US$8,000
US$250
U$6,500
U$125
Liability
J$40,000
J$40,000
J$93,000
J$7,500
Marine, aviation and transport
US$2,000
US$125
US$2,000
US$125
Motor
J$10,000
J$10,000
J$10,000
J$10,000
Miscellaneous Accident –
All Risk
J$48,000
J$3,200
J$30,000
J$2,000
Burglary
J$10,000
J$2,000
J$10,000
J$2,000
Cash/Money
J$5,000
J$1,000
J$5,000
J$1,000
Fidelity
J$5,000
J$1,000
J$5,000
J$1,000
Bonds
J$150,000
J$30,000
J$100,000
J$20,000
Goods in Transit
J$7,500
J$1,500
J$7,500
J$1,500
Personal Accident
J$10,000
J$2,000
J$10,000
J$2,000
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
123
4. Insurance and Financial Risk Management (Continued)
2024
2023
Policy
Limit
’000
Maximum
Net
Retention
’000
Policy
Limit
’000
Maximum
Net
Retention
’000
Trinidad and Tobago
Commercial property –
Fire and consequential loss
TT$50,000
TT$5,000
TT$50,000
TT$5,000
Personal property
TT$50,000
TT$5,000
TT$50,000
TT$5,000
Engineering
TT$54,400
TT$1,700
TT$44,200
TT$850
Liability
TT$7,000
TT$1,600
TT$11,400
TT$1,600
Motor
TT$11,400
TT$1,600
TT$11,400
TT$1,600
Marine, aviation and transport
US$2,000
US$125
US$2,000
US$125
Miscellaneous Accident –
All Risk
TT$2,010
TT$134
TT$2,010
TT$134
Burglary
TT$435
TT$87
TT$435
TT$87
Cash/Money
TT$335
TT$67
TT$335
TT$67
Fidelity
TT$335
TT$67
TT$335
TT$67
Bonds
TT$2,500
TT$500
TT$2,500
TT$500
Goods in Transit
TT$335
TT$67
TT$335
TT$67
Personal Accident
TT$670
TT$ 134
TT$670
TT$ 134
Barbados
Commercial property –
Fire and consequential loss
BB$16,000
BB$1,600
BB$16,000
BB$1,600
Personal property
BB$16,000
BB$1,600
BB$16,000
BB$1,600
Engineering
BB$13,000
BB$250
BB$13,000
BB$250
Liability
BB$22,500
BB$150
BB$22,500
BB$150
Motor
BB$22,500
BB$150
BB$22,500
BB$150
Miscellaneous Accident –
All Risk
BB$600
BB$40
BB$750
BB$50
Burglary
BB$350
BB$50
BB$350
BB$50
Cash/Money
BB$350
BB$50
BB$350
BB$50
Fidelity
BB$140
BB$20
BB$140
BB$20
Bonds
BB$2,000
BB$400
BB$2,000
BB$400
Goods in Transit
BB$140
BB$20
BB$140
BB$20
Personal Accident
BB$200
BB$40
BB$200
BB$40
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
124
4. Insurance and Financial Risk Management (Continued)
(a) Insurance risk (continued)
Sensitivity analysis to underwriting risk variables
The liability for incurred claims is sensitive to the key assumptions in the table below. It has not been possible
to quantify the sensitivity of certain assumptions such as legislative changes or uncertainty in the estimation
process.
The following table presents information on how reasonably possible changes in assumptions made by the
Group with regard to how underwriting risk variables impact insurance liabilities before and after risk
mitigation by reinsurance contracts held. These contracts are measured under the PAA and, thus, only the
LIC component of insurance liabilities is sensitive to possible changes in underwriting risk variables.
Group
LIC as at 31
December 2024
$’000
Impact on LIC
$’000
Impact on profit
before income
tax
$’000
Liability for incurred claims
4,664,864
-
-
Increase development by 10%
-
155,001
155,001
Decrease development by 10%
-
(123,996)
(123,996)
Group
LIC as at 31
December 2023
$’000
Impact on LIC
$’000
Impact on profit
before income
tax
$’000
Liability for incurred claims
3,612,194
-
-
Increase development by 10%
-
127,170
127,170
Decrease development by 10%
-
(101,731)
(101,731)
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
125
4. Insurance and Financial Risk Management (Continued)
(a) Insurance risk (continued)
Sensitivity Analysis of Actuarial Liabilities
Company
LIC as at 31
December 2024
$’000
Impact on LIC
$’000
Impact on profit
before income
tax
$’000
Liability for incurred claims
3,446,921
-
-
Increase development by 10%
-
119,622
119,622
Decrease development by 10%
-
(95,699)
(95,699)
Company
LIC as at 31
December 2023
$’000
Impact on LIC
$’000
Impact on profit
before income
tax
$’000
Liability for incurred claims
2,600,674
-
-
Increase development by 10%
-
90,254
90,254
Decrease development by 10%
-
(72,203)
(72,203)
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
126
2017
2017
2018
2018
2019
2019
And
and
and
Prior
prior
prior
$’000
$’000
$’000
$’000
$’000
$’000
2017
Paid during year
407,102
1,328,200
UCAE, end of year
658,944
2,761,665
IBNR, end of year
426,773
1,522,547
Ratio: excess (deficiency)
-
-
2018
Paid during year
419,091
836,990
704,090
1,541,080
UCAE, end of year
403,829
2,117,111
702,263
2,819,374
IBNR, end of year
251,701
742,960
361,653
1,104,613
Ratio: excess (deficiency)
1.02%
13.70%
-
-
2019
Paid during year
158,262
1,055,380
495,868
1,551,248
642,092
2,193,340
UCAE, end of year
258,251
1,039,200
367,971
1,407,171
724,954
2,132,125
IBNR, end of year
172,455
446,604
217,437
664,041
352,877
1,016,918
Ratio: excess (deficiency)
7.15%
21.15%
-1.63%
7.68%
-
-
2020
Paid during year
146,510
593,907
146,478
740,385
621,611
1,361,996
UCAE, end of year
244,074
764,994
498,845
1,263,839
498,791
1,762,630
IBNR, end of year
91,988
165,010
148,783
313,793
159,783
473,576
Ratio: excess (deficiency)
-2.38%
-20.26%
7.15%
-5.22%
18.77%
9.50%
2021
Paid during year
100,762
280,184
74,660
354,844
84,965
439,809
UCAE, end of year
142,130
472,253
265,274
737,527
266,214
1,003,741
IBNR, end of year
72,837
257,527
120,474
378,001
57,080
435,081
Ratio: excess (deficiency)
-9.03%
-10.21%
-0.31%
-0.86%
-7.64%
-0.36%
2022
Paid during year
13,051
64,033
50,012
114,045
60,930
174,975
UCAE, end of year
100,151
354,808
151,723
506,531
188,318
694,849
IBNR, end of year
12,958
18,815
14,542
33,357
22,691
56,048
Ratio: excess (deficiency)
52.12%
46.17%
13.83%
18.23%
1.66%
14.01%
2023
Paid during year
16,142
71,838
37,324
109,162
55,988
165,150
UCAE, end of year
63,680
235,236
94,475
329,711
107,919
437,630
IBNR, end of year
1,021
8,232
3,330
11,562
7,758
19,320
Ratio: excess (deficiency)
-5.94%
-6.38%
-3.17%
-1.08%
7.66%
14.10%
2024
Paid during year
22,597
64,484
29,120
93,604
36,801
130,405
UCAE, end of year
27,915
143,912
53,347
197,259
82,863
280,122
IBNR, end of year
6,483
10,232
6,349
16,581
8,289
24,870
Effects of discount, risk adj,
other end of year
(130)
1,296
(13,742)
(12,445)
(28,818)
(41,263)
Ratio: excess (deficiency)
-16.11%
-27.15%
-16.05%
-19.03%
-11.73%
-18.16%
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 2016 - 2023 has changed at successive year-ends, up to 2023. Updated
date are used to derive the revised amounts for the ultimate claims liability for each accident year, used in
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
127
2020
2020
2021
2021
2022
2022
2023
2023
2024
2024
and
and
and
and
and
prior
prior
prior
prior
prior
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
677,161
2,039,157
734,770
2,497,400
337,154
810,730
-
-
577,580
1,017,389
682,569
1,699,958
461,939
1,465,680
671,032
2,136,712
81,527
516,608
392,469
909,077
4.58%
1.17%
-
-
141,872
316,847
698,217
1,015,064
753,449
1,768,513
289,280
984,129
82,383
1,066,512
1,158,026
2,224,538
67,944
123,992
138,806
262,798
387,741
650,539
-0.44%
19.50%
19.78%
26.04%
-
-
67,894
233,044
209,818
442,862
778,947
1,221,809
1,157,821
2,379,630
146,738
584,368
205,011
789,379
522,375
1,311,754
585,176
1,896,931
13,541
32,862
(23.475)
9,387
(23,829)
(14,442)
480,946
466,505
4.36%
4.24%
27.34%
17.28%
43.78%
30.24%
-
-
43,941
174,345
70,175
244,521
208,718
453,239
1,066,833
1,520,072
1,601,831
3,121,903
99,600
379,722
127,125
506,847
368,456
875,304
557,813
1,433,117
782,369
2,215,486
22,519
47,389
29,390
76,779
33,214
109,993
66,179
176,172
694,347
870,519
(39,026)
(80,289)
(67,057)
(147,346)
(115,185)
(262,531)
(59,280)
(321,811)
(249,809)
(571,620)
-11.06%
-34.44%
6.70%
-24.94%
-10.12%
-7.47%
58.60%
32.41%
-
-
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.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
128
2017
2017
2018
2018
2019
2019
2020
and
and
and
prior
prior
prior
$’000
$’000
$’000
$’000
$’000
$’000
$’000
2017
Paid during year
376,268
970,743
UCAE, end of year
491,870
1,201,062
IBNR, end of year
128,131
200,680
Ratio: excess (deficiency)
Ͳ
Ͳ
2018
Paid during year
357,070
560,130
657,745
1,217,875
UCAE, end of year
217,186
658,207
610,706
1,268,913
IBNR, end of year
39,187
86,903
112,632
199,535
Ratio: excess (deficiency)
-9.96%
-12.36%
-
-
2019
Paid during year
70,661
198,689
391,239
589,928
593,953
1,183,881
UCAE, end of year
122,988
376,489
294,613
671,102
693,840
1,364,942
IBNR, end of year
7,542
12,289
24,022
36,311
168,069
204,380
Ratio: excess (deficiency)
-10.59%
-6.59%
-27.77%
-22.26%
-
-
2020
Paid during year
29,570
105,613
89,000
194,613
577,520
772,133
619,746
UCAE, end of year
97,345
308,058
217,201
525,259
391,730
916,989
631,504
IBNR, end of year
2,581
13,413
11,894
25,307
35,763
61,070
191,432
Ratio: excess (deficiency)
2.84%
1.14%
21.11%
14.27%
1.06%
11.53%
-
2021
Paid during year
25,329
74,222
55,988
130,210
132,087
262,297
508,866
UCAE, end of year
65,004
227,468
144,380
371,848
222,793
594,641
341,734
IBNR, end of year
6,780
14,440
5,903
20,343
18,887
39,230
34,819
Ratio: excess (deficiency)
0.26%
-3.88%
10.92%
5.17%
-9.96%
6.31%
7.59%
2022
Paid during year
19,698
58,337
29,065
87,402
46,664
134,066
121,797
UCAE, end of year
43,986
169,879
79,213
249,092
137,917
387,009
201,030
IBNR, end of year
8,393
24,054
15,127
39,181
10,414
49,595
21,422
Ratio: excess (deficiency)
68.12%
14.44%
27.19%
12.12%
-4.95%
-2.28%
-3.67%
2023
Paid during year
14,558
55,699
26,324
82,023
49,401
131,424
49,447
UCAE, end of year
34,277
120,319
61,700
182,019
95,560
277,580
117,245
IBNR, end of year
1,021
8,232
3,330
11,562
7,758
19,321
13,541
Ratio: excess (deficiency)
-10.94%
-15.73%
-9.22%
-12.99%
5.46%
1.75%
-1.46%
2024
Paid during year
6,393
23,138
21,645
44,783
33,481
78,264
37,743
UCAE, end of year
26,731
92,793
47,660
140,453
64,848
205,301
80,749
IBNR, end of year
6,483
10,232
6,349
16,581
8,289
24,870
22,519
Effects of discount, risk adj,
other end of year
(72)
714
(7,564)
(6,850)
(15,862)
(22,712)
(21,481)
Ratio: excess (deficiency)
-10.24%
-15.90%
-7.75%
-12.43%
5.85%
2.49%
-0.22%
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 2016 - 2023 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,
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
129
2020
2021
2021
2022
2022
2023
2023
2024
2024
and
and
and
And
And
prior
prior
prior
Prior
Prior
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
1,391,879
1,548,493
252,502
-
771,163
618,721
1,389,884
936,375
599,123
1,535,498
74,049
184,364
258,413
-1.08%
-
-
255,863
606,318
862,181
586,448
1,448,629
588,039
348,120
936,159
596,050
1,532,209
71,017
38,522
109,538
292,437
401,975
6.38%
26.74%
-6.30%
-
-
180,871
191,478
372,349
602,300
974,649
707,382
1,682,031
394,825
184,454
579,279
367,009
946,288
237,359
1,183,647
32,862
(23,475)
9,387
(23,811)
(14,424)
329,326
314,902
-9.18%
22.37%
1.63%
6.42%
-1.43%
-
-
116,007
65,463
181,470
167,840
349,310
819,266
1,168,576
840,235
2,008,811
286,050
116,008
402,058
281,906
683,964
331,609
1,015,573
414,352
1,429,925
47,389
28,096
75,485
32,609
108,094
66,061
174,155
439,871
614,026
(44,192)
(36,909)
(81,101)
(63,399)
(144,501)
(32,628)
(177,129)
(137,498)
(314,627)
-7.98%
28.57%
5.55%
22.08%
9.40%
114.75%
57.37%
-
-
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.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
130
4. Insurance and Financial Risk Management (Continued)
(b) Reinsurance risk
To limit its exposure of potential loss on an insurance policy, the insurer may cede certain levels of risk to a
reinsurer. The Group selects reinsurers which have established capability to meet their contractual obligations
and which generally have high credit ratings. The credit ratings of reinsurers are monitored.
Retention limits represent the level of risk retained by the cedant insurer. Coverage in excess of these limits is
ceded to reinsurers up to the treaty limit or as agreed. The retention programs used by the Group are
summarised below:
(a) Facultative reinsurance treaties are accepted on a per risk basis.
(b) The group has treaty arrangements as follows:
(i) Property:
Jamaica
Barbados
Trinidad
Property & Allied
Perils
Ceded
Retention
Ceded Retention
Ceded Retention
Homeowners
90%
10%
85%
15%
90%
10%
Other Property
80%
20%
85%
15%
90%
10%
(ii) Motor 60%:40% Quota Share of premiums i.e 60% ceded premiums and 40% retained
(iii) Excess of loss treaty for motor and third-party liability, which covers losses in excess of J$7,500,000
for any one loss or event.
(iv) Excess of loss treaty for motor and third-party liability, which covers losses in excess of TT$800,000
for any one loss or event.
(v) First surplus and a quota share treaty for engineering business with retention of US$125,000.
(vi) First surplus treaty for miscellaneous accident, losses covered in excess of J$2,000,000.
(vii) Catastrophe excess of loss treaty which covers losses in excess of J$150,000,000 for any one
catastrophic event as defined.
The Group reinsures with several reinsurers. Of significance are Munich Reinsurance, R & V Reinsurance,
Scor Reinsurance and Swiss Reinsurance Company. All other reinsurers carry lines under 10%. The Group’s
business model supports the placement of specialty risk directly in the overseas market on a per risk basis.
In keeping with the Group’s risk policy, placement of these risks are with several reinsurers. A.M Best (Best)
and Standard & Poor’s (S & P) ratings for the major reinsurers are as follows:
A.M Best
S & P
2024
2023
2024
2023
R & V Reinsurance
-
-
A+
A+
Scor Reinsurance Company
A+
A+
A
A+
Swiss Reinsurance Company
A+
A+
AA-
AA-
(d) The amount of reinsurance recoveries recognised during the period is as follows:
Group
Company
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Engineering
13,442
81,633 11,747
44,986
Fire
171,658
226,285 117,592
194,810
General Accident
(1,495)
41,704 (6,778)
23,005
Liability
6,276
(7,626) 6,276
(10,845)
Marine
31,650
8,415 31,187
3,725
Motor
732,567
681,429 627,917
633,710
954,098
1,031,840 787,941
889,391
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
131
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk
The Group is exposed to financial risk through its financial assets, reinsurance assets and insurance
liabilities. In particular the key financial risk is that the proceeds from its financial assets are not sufficient to
fund the obligations arising from its insurance contracts. The most important components of this financial risk
are interest rate risk, market risk, cash flow risk, currency risk, price risk and credit risk.
These risks arise from open positions in interest rates, currency and equity products, all of which are exposed
to general and specific market movements. The risks that the Group primarily faces due to the nature of its
investments and liabilities are credit risk, interest rate risk and market risk. The Group’s overall risk
management programme focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects of the Group’s financial performance.
(i) Credit risk
The Group takes on exposure to credit risk, which is the risk that its reinsurers, brokers, customers,
clients or counterparties will cause a financial loss for the Group by failing to discharge their contractual
obligations. Credit risk is an important risk for the Group’s business; management therefore carefully
manages its exposure to credit risk. Credit exposures arise principally from reinsurance assets,
investment contracts, lease receivables and loans receivable.
The Group structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted
in relation to a single counterparty or groups of related counterparties.
Credit review process
The Group’s senior management meets on a monthly basis to discuss the ability of customers and other
counterparties to meet repayment obligations.
(i) Reinsurance
Reinsurance is used to manage insurance risk. This does not, however, discharge the Group’s
liability as primary insurer. If a reinsurer fails to pay a claim for any reason, the Group remains liable
for the payment to the policyholder. The creditworthiness of reinsurers is considered on an annual
basis by reviewing their financial strength prior to finalisation of any contract. The Group’s senior
management assesses the creditworthiness of all reinsurers and intermediaries by reviewing credit
grades provided by rating agencies and other publicly available financial information.
(ii) Loans and leases receivable
The Group’s management of exposure to loans and leases receivable is influenced mainly by the
individual characteristics of each customer. Management has established a credit policy under which
each customer is analysed individually for creditworthiness prior to the Group offering credit facilities.
Customers are required to provide a letter of guarantee and proof of collateral to be held as security.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
132
4. Insurance and Financial Risk Management (Continued)
(d) Financial risk (continued)
(i) Credit risk (continued)
Credit review process (continued)
(iii) Investments
The Group limits its exposure to credit risk by investing mainly in liquid securities, with counterparties
that have high credit quality and Government securities. Accordingly, management does not expect
any counterparty to fail to meet its obligations.
Impairment of Financial Assets
The following financial assets that are subject to expected credit loss model:
• Debt investments carried at amortised cost.
• Lease receivables
While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, all bank
balances are assessed to have low credit risk at each reporting date as they are held with reputable
banking institutions and the identified impairment loss was immaterial.
Debt securities
The following table summarises the Group’s credit exposure for debt securities at their carrying amounts,
as categorised by issuer:
Group
Company
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Government of Jamaica
13,717
13,716
13,716
13,716
Government of Trinidad and Tobago
58,582
298,284
-
-
Other Government
-
30,566
-
30,566
Certificate of deposits
2,239,727
1,714,774
1,060,631
874,404
Corporate
108,922
108,066
108,922
108,066
2,420,948
2,165,406
1,183,269
1,026,752
Significant increase in credit risk
• Qualitative assessment – Credit ratings are associated with ranges of default probabilities based on
historical information. Rating outlooks, which are inherently forward-looking, are used to determine the
probability of default to be applied to a specific security within its respective range. Issuer-specific
default risk estimates incorporate forward-looking information directly. In calculating the probability of
default, the Group uses credit ratings along with rating outlooks from recognised rating agencies, as
well as issuer-specific default risk estimates where available and appropriate. The ratings and risk
estimates are mapped to an internal credit risk grading model in order to standardise across different
rating systems and to clearly demarcate significant changes in credit risk over time.
A qualitative assessment is done at initial recognition and subsequently at each statement of financial
position date and where it is determined that there is a significant increase in the probability of default
the security is categorise as stage 2 for the purpose of calculating the ECL. If the financial instrument
is credit impaired, the financial instrument is then moved to ‘Stage 3. Purchased or originated credit-
impaired financial assets are those financial assets that are credit-impaired on initial recognition. Their
ECL is always measured on a lifetime basis (Stage 3).
• Quantitative assessment - Investment securities considered to have experienced a significant increase
in credit risk if it is more than 30 days past due on its contractual payments.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
133
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(i) Credit risk (continued)
Expected credit loss measurement
The Group assesses on a forward-looking basis the ECL associated with debt investments. The ECL
recognised by the Group reflects an unbiased and probability weighted amounts that is determined by
evaluating a range of possible outcomes, the time value of money and reasonable and supportable
information that is available without undue cost at the reporting date. The ECL is the product of the
Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD).
The PD presents the likelihood of a borrower defaulting on its financial obligation, either over the next 12
months or over the remaining lifetime of the obligation.
EAD is based on the amounts the Group expects to be owed at the time of default, over the next 12
months or over the remaining lifetime.
LGD represents the Group’s expectation of the extent of loss on a defaulted exposure. LGD is calculated
on a 12 month or a lifetime basis, where 12 month LGD is the percentage of loss expected to be made
if the default occurs in the next 12 months and lifetime LGD is a percentage of loss expected to be made
if the default occurs over the remaining expected lifetime of the loan.
All of the Group’s debt investments at amortised cost is considered to have low credit risk, and the loss
allowance recognised during the period was therefore limited to 12 months expected losses (Stage 1).
Management considers ‘low credit risk’ for bonds to be those with an investment grade or high credit rating
with at least one major rating agency. Other instruments are considered to be low credit risk when they
have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations
in the near term. There were no transfers between stages from the date of adoption to the reporting date.
The loss allowance for debt investments at amortised cost as at 31 December 2024 reconciles to the
opening loss allowance on 1 January 2024 as at 31 December 2024 as follows:
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Opening loss allowance as at 1 January
3,190
3,723
3,147
3,680
Decrease in loss allowance recognised in profit or loss
in the statement of comprehensive income during the year
-
(533)
-
(533)
Closing loss allowance as at 31 December
3,190
3,190
3,147
3,147
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
134
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(i) Credit risk (continued)
Sensitivity analysis
Set out below are the changes in ECL as at 31 December 2024 that would result from a reasonably possible
change in the PDs used by the Group:
Impact on ECL
31 December 2024
The Group
The Company
Financial Assets
Actual
PD
ranges
applied
%
Change
in PD
Higher
threshold
Lower
threshold
Higher
threshold
Lower
threshold
$’000
$’000
Debt instruments at amortised
cost
1% - 4%
+/- 20%
638
(638)
629
(629)
Impact on ECL
31 December 2023
The Group
The Company
Financial Assets
Actual
PD
ranges
applied
%
Change
in PD
Higher
threshold
Lower
threshold
Higher
threshold
Lower
threshold
$’000
$’000
Debt instruments at amortised
cost
1% - 4%
+/- 20%
638
(638)
629
(629)
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
135
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(ii) Liquidity risk
Liquidity risk is the risk that the Group is unable to meet its payment obligations associated with its
financial liabilities when they fall due and to replace funds when they are withdrawn. The consequence
may be the failure to meet obligations to fulfil claims and other liabilities incurred.
Liquidity risk management process
The Group’s liquidity management process, as carried out within the Group and monitored by the Board
of Directors, includes:
(i) Monitoring future cash flows and liquidity on a daily basis. This incorporates an assessment of
expected cash flows and the availability of high grade collateral which could be used to secure
funding if required;
(ii) Maintaining a portfolio of highly marketable assets that can easily be liquidated as protection against
any unforeseen interruptions to cash flow;
(iii) Optimising cash returns on investments;
(iv) Monitoring statement of financial position liquidity ratios against internal and regulatory requirements;
and
(v) Managing the concentration and profile of debt maturities.
Monitoring and reporting take the form of cash flow measurement and projections for the next day, week
and month, as these are key periods for liquidity management. The starting point for those projections is
an analysis of the contractual maturity of the financial liabilities and the expected collection date of the
financial assets.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
136
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
Maturity
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
At 31 December 2024:
Cash and cash equivalents
1,640,808
486,235
-
-
-
19,335
2,146,378
Reinsurance contract assets
-
-
47,598
-
-
3,003,302
3,050,900
Other receivables
-
- 1,198,114
-
-
374,932
1,573,046
Due from related parties
-
-
-
-
-
7,442
7,442
Loan receivable
-
61,013
16,251
307,591
16,991
-
401,846
Lease receivable
2,381
4,762
11,748
-
-
-
18,891
Investment securities
246,125
134,324
1,114,571
575,363
411,349
750,317
3,232,049
Total financial assets
1,889,314
686,334
2,388,282
882,954
428,340
4,155,328
10,430,552
Other liabilities
-
-
-
-
-
644,354
644,354
Lease liabilities
4,390
9,815
52,633
136,948
-
13,284
217,070
Insurance contract liabilities
-
-
1,258,170
-
-
5,697,009
6,955,179
Total financial liabilities
4,390
9,815
1,310,803
136,948
-
6,354,647
7,816,603
Net Liquidity Gap
1,884,924
676,519
1,077,479
746,006
428,340
(2,199,319)
2,613,949
Cumulative gap
1,884,924
2,561,443
3,638,922
4,384,928
4,813,268
2,613,949
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
137
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)`
(ii) Liquidity risk (continued)
Liquidity risk management process)
Group
Within 1
Month
Within 3
Months
3 to 12
Months
1 to 5
Years
Over
5 Years
No Specific
Maturity
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
At 31 December 2023:
Cash and cash equivalents
836,745
242,846
-
-
-
-
1,079,591
Reinsurance contract assets
94,163
587,534
1,358,961
-
-
-
2,040,658
Insurance contract assets
12,246
829
12,058
-
-
-
25,133
Other receivables
38,074
5,036
984,046
-
-
232,867
1,260,023
Due from related parties
-
-
-
-
-
8,334
8,334
Loan receivable
737
1,453
6,193
22,270
95,824
-
126,477
Lease receivable
6,405
6,461
24,827
9,525
-
-
47,218
Real estate investment
-
-
-
-
-
228,750
228,750
Investment securities
206,437
177,591
614,982
975,928
262,280
976,286
3,213,504
Total financial assets
1,194,807
1,021,750
3,001,067
1,007,723
358,104
1,446,237
8,029,688
Other liabilities
-
-
-
-
-
231,130
231,130
Lease liabilities
2,797
4,701
44,183
204,690
-
-
256,371
Insurance contract liabilities
1,126,267
99,265
1,108,954
2,802,038
-
-
5,136,524
Reinsurance contract liabilities
462
2,883
6,667
-
-
-
10,012
Total financial liabilities
1,129,526
106,849
1,159,804
3,006,728
-
231,130
5,634,037
Net Liquidity Gap
65,281
914,901
1,841,263
(1,999,005)
358,104
1,215,107
2,395,651
Cumulative gap
65,281
980,182
2,821,445
822,440
1,180,544
2,395,651
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
138
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(ii) Liquidity risk (continued)
Liquidity risk management process (continued)
Company
Within 1
Month
Within 3
Months
3 to 12
Months
1 to 5
Years
Over
5 Years
No Specific
Maturity
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
At 31 December 2024:
Cash and cash equivalents
753,764
486,235
1,239,999
Reinsurance contract assets
-
-
-
-
-
2,945,538
2,945,538
Other receivables
-
-
1,198,114
323,645
1,521,759
Due from related parties
654,911
654,911
Loans receivable
61,013
212,509
273,522
Lease receivable
2,381
4,762
11,748
-
-
18,891
Investment securities
246,125
134,324
705,934
139,046
14,459
750,317
1,990,205
Total financial assets
1,002,270
686,334
1,915,796
351,555
14,459
4,674,411
8,644,825
Other liabilities
-
-
-
-
-
687,125
687,125
Lease liabilities
4,390
9,815
39,708
136,948
-
-
190,861
Insurance contract liabilities
-
-
-
-
-
5,528,916
5,528,916
Total financial liabilities
4,390
9,815
39,708
136,948
-
6,216,041
6,406,902
Net Liquidity Gap
997,880
676,519
1,876,088
214,607
14,459 (1,541,630)
2,237,923
Cumulative gap
997,880
1,674,399
3,550,487
3,765,094
3,779,553
2,237,923
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
139
4. Insurance and Financial Risk Management (Continued)
(d) Financial risk (continued)
(ii) Liquidity risk (continued)
Liquidity risk management process (continued)
Company
Within 1
Month
Within 3
Months
3 to 12
Months
1 to 5
Years
Over
5 Years
No
Specific
Maturity
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
At 31 December 2023:
Cash and cash equivalents
513,167
147,873
-
-
-
-
661,040
Reinsurance contract assets
89,812
560,383
1,296,162
-
-
-
1,946,357
Other receivables
8,030
5,036
984,046
-
-
19,362
1,016,474
Due from related parties
-
-
-
-
-
273,475
273,475
Lease receivable
6,405
6,461
24,827
9,525
-
-
47,218
Real estate investment
-
-
-
-
-
228,750
228,750
Investment securities
196,120
157,423
607,743
121,275
16,003
971,953
2,070,517
Total financial assets
813,534
877,176
2,912,778
130,800
16,003
1,493,540
6,243,831
Other liabilities
180,541
14,911
97,707
-
-
-
293,159
Lease liabilities
285
285
34,305
213,682
-
-
248,557
Insurance contract liabilities
799,188
70,437
786,902
1,988,298
-
-
3,644,825
Total financial liabilities
980,014
85,633
918,914
2,201,980
-
-
4,186,541
Net Liquidity Gap
(166,480)
791,543
1,993,864 (2,071,180)
16,003
1,493,540
2,057,290
Cumulative gap
(166,480)
625,063
2,618,927
547,747
563,750
2,057,290
-
Assets available to meet all of the liabilities and to cover financial liabilities include cash and bank balances
and investment securities. The Group is also able to meet unexpected net cash outflows by selling
securities and accessing additional funding sources from its parent company and other financial
institutions.
The Group takes on exposure to market risks, which is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market prices. Market risks mainly arise from
changes in foreign currency exchange rates, interest rates and prices of quoted equities. Market risk is
monitored by the finance department which carries out research and monitors the price movement of
financial assets on the local and international markets.
There has been no change to the Group’s exposure to market risks or the manner in which it manages and
measures the risk.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
140
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk
Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates.
The Group also has transactional currency exposure. Such exposure arises from having financial
assets in currencies other than those in which financial liabilities are expected to settle. The Group
ensures that its net exposure is kept to an acceptable level by buying or selling foreign assets to address
short term imbalances.
Concentrations of currency risk
The tables below summarise the Group’s exposure to foreign currency exchange rate risk at
31 December:
The Group
Jamaican$
TTD
US$
BBD
Total
J$’000
J$’000
J$’000
J$’000
J$’000
At 31 December 2024:
Financial Assets
Cash and cash equivalents
774,414
461,673
480,812
429,479
2,146,378
Reinsurance contract assets
-
-
3,050,900
-
3,050,900
Other receivables
1,508,013
2,235
43,073
19,725
1,573,046
Loan receivables
273,522
128,324
-
-
401,846
Lease receivables
18,891
-
-
-
18,891
Due from related parties
7,442
-
-
-
7,442
Investment securities
1,628,987
1,474,207
128,855
-
3,232,049
Total financial assets
4,211,269
2,066,439
3,703,640
449,204
10,430,552
Financial Liabilities
Other liabilities
551,507
45,347
6,593
40,907
644,354
Lease liabilities
-
12,925
190,861
13,284
217,070
Insurance contract liabilities
5,528,916
1,258,170
-
168,093
6,955,179
Total financial liabilities
6,080,423
1,316,442
197,454
222,284
7,816,603
Net financial position
(1,869,154)
749,997
3,506,186
226,920
2,613,949
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
141
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Currency risk (continued)
The tables below summarise the Group’s exposure to foreign currency exchange rate risk at
31 December:
The Group
Jamaican$
TTD
US$
BBD
Total
J$’000
J$’000
J$’000
J$’000
J$’000
At 31 December 2023:
Financial Assets
Cash and cash equivalents
384,445
230,435
317,055
147,656
1,079,591
Reinsurance contract assets
1,946,357
34,800
-
59,501
2,040,658
Insurance contract assets
-
21,030
-
4,103
25,133
Other receivables
1,176,359
10,168
43,073
30,423
1,260,023
Loan receivables
-
126,477
-
-
126,477
Lease receivables
44,725
-
-
-
44,725
Due from related parties
8,334
-
-
-
8,334
Real estate investment
228,750
-
-
-
228,750
Investment securities
1,557,365 1,219,300
390,622
-
3,167,287
Total financial assets
5,346,335 1,642,210
750,750
241,683
7,980,978
Financial Liabilities
Reinsurance contract liabilities
-
304
-
9,708
10,012
Other liabilities
153,962
70,658
-
6,510
231,130
Due to related parties
-
-
-
-
-
Lease liabilities
-
13,561
217,959
4,193
235,713
Insurance contract liabilities
3,644,825 1,356,725
-
134,974
5,136,524
Total financial liabilities
3,798,787 1,441,248
217,959
155,385
5,613,379
Net financial position
1,547,548
200,962
532,791
86,298
2,367,599
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
142
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Currency risk (continued)
The tables below summarise the Company’s exposure to foreign currency exchange rate risk at
31 December:
Company
Jamaican$
US$
TT$
BB$
Total
J$’000
J$’000
J$’000
J$’000
J$’000
At 31 December 2024:
Financial Assets
Cash and cash equivalents
774,415
-
465,584
-
1,239,999
Reinsurance contract assets
-
- 2,945,538
-
2,945,538
Other receivables
1,478,686
-
43,073
-
1,521,759
Loans receivable
273,522
-
-
-
273,522
Lease receivables
18,891
-
-
-
18,891
Due from related parties
7,443
13,769
383,497
250,202
654,911
Investment securities
1,628,987
232,363
128,855
-
1,990,205
Total financial assets
4,181,944
246,132 3,966,547
250,202
8,644,825
Financial Liabilities
Other liabilities
680,532
-
6,593
-
687,125
Lease liabilities
-
-
190,861
-
190,861
Insurance contract liabilities
5,528,916
-
-
-
5,528,916
Total financial liabilities
6,209,448
-
197,454
-
6,406,902
Net financial position
(2,027,504)
246,132 3,769,093
250,202
2,237,923
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
143
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Currency risk (continued)
The tables below summarise the Company’s exposure to foreign currency exchange rate risk at
31 December:
Company
Jamaican$
US$
TT$
BB$
Total
J$’000
J$’000
J$’000
J$’000
J$’000
At 31 December 2023:
Financial Assets
Cash and cash equivalents
384,445
276,595
-
-
661,040
Reinsurance contract assets
1,946,357
-
-
-
1,946,357
Other receivables
973,401
43,396
-
-
1,016,797
Lease receivables
44,725
-
-
-
44,725
Due from related parties
8,334
234,376
17,702
13,063
273,475
Real estate investment
228,750
-
-
-
228,750
Investment securities
1,557,365
390,622
76,313
-
2,024,300
Total financial assets
5,143,377
944,989
94,015
13,063
6,195,444
Financial Liabilities
Other liabilities
293,159
-
-
-
293,159
Lease liabilities
-
217,959
-
-
217,959
Insurance contract liabilities
3,644,825
-
-
-
3,644,825
Total financial liabilities
3,937,984
217,959
-
-
4,155,943
Net financial position
1,205,393
727,030
94,015
13,063
2,039,501
The following tables indicate the currencies to which the Company had significant exposure on its
monetary assets and liabilities and its forecast cash flows. The change in currency rates below represents
management’s assessment of the possible change in foreign exchange rates. The sensitivity analysis
shows the impact of translating outstanding foreign currency denominated monetary items, assuming
changes in currency rates shown in the table below. The sensitivity analysis includes cash and short-
term deposits, investment securities, premium and other receivables and claims liabilities. The
percentage change in the currency rate will impact each financial asset/liability included in the sensitivity
analysis differently. Consequently, individual sensitivity analyses were performed. The effect on pre-tax
profit below is the total of the individual sensitivities done for each of the assets/liabilities. There was no
impact on the other components of equity.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
144
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Foreign currency sensitivity
The Group
% Change in
Currency Rate
Increase/
(decrease) in
Pre-tax
Profit
% Change in
Currency Rate
Increase/
(decrease) in
Pre-tax
Profit
2024
2024
$’000
2023
2023
$’000
USD – J$ Revaluation
1%
(35,228)
1%
(5,328)
USD – J$ Devaluation
4%
140,913
4%
21,312
TT – J$ Revaluation
4%
(31,531)
4%
(8,038)
TT – J$ Devaluation
6%
47,296
6%
12,058
The Company
% Change in
Currency Rate
Increase/
(decrease) in
Pre-tax
Profit
% Change in
Currency Rate
Increase/
(decrease) in
Pre-tax
Profit
2024
2024
$’000
2023
2023
$’000
USD – J$ Revaluation
1%
(37,691)
1%
(7,267)
USD – J$ Devaluation
4%
150,764
4%
29,068
TT – J$ Revaluation
4%
(9,861)
4%
(3,761)
TT – J$ Devaluation
6%
14,791
6%
5,641
BB – J$ Devaluation
4%
(10,008)
4%
(523)
BB – J$ Devaluation
6%
15,012
6%
784
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.
Floating rate instruments expose the Group to cash flow interest risk, whereas fixed interest rate
instruments expose the Group to fair value interest risk.
The Group’s interest rate risk policy requires it to manage interest rate risk by maintaining an appropriate
mix of fixed and variable rate instruments. The policy also requires it to manage the maturities of interest
bearing financial assets and interest bearing financial liabilities.
The following tables summarise the Group’s exposure to interest rate risk. It includes the Group’s financial
instruments at carrying amounts, categorised by the earlier of contractual repricing or maturity dates.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
145
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Interest rate risk (continued)
The Group
Within 1
Month
Within 3
Months
3 to 12
Months
1 to 5
Years
Over
5 Years
Non-Interest
Bearing
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
At 31 December 2024:
Cash and cash equivalents
1,561,813
584,565
-
-
-
-
2,146,378
Reinsurance contract assets
-
-
-
-
-
3,050,900
3,050,900
Other receivables
47,129
-
1,156,422
-
-
369,495
1,573,046
Due from related parties
-
-
-
-
-
7,442
7,442
Loan receivables
-
-
-
-
128,324
273,522
401,846
Lease receivable
2,381
4,762
11,748
-
-
-
18,891
Investment securities
239,041
130,453
709,080
898,079
475,635
779,761
3,232,049
Total financial assets
1,850,364
719,780
1,877,250
898,079
603,959
4,481,120
10,430,552
Other liabilities
-
-
-
-
-
644,354
644,354
Lease liabilities
3,694
8,368
53,986
151,022
-
-
217,070
Insurance contract liabilities
-
-
-
-
-
6,955,179
6,955,179
Total financial liabilities
3,694
8,368
53,986
151,022
-
7,599,533
7,816,603
Total interest repricing gap
1,846,670
711,412
1,823,264
747,057
603,959
(3,118,413)
2,613,949
Cumulative gap
1,846,670
2,558,082
4,381,346
5,128,403
5,732,362
2,613,949
The Group
At December 2023
Cash and cash equivalents
836,745
242,846
-
-
-
-
1,079,591
Reinsurance contract assets
-
-
-
-
-
2,040,658
2,040,658
Insurance contract assets
-
-
-
-
-
25,133
25,133
Other receivables
38,428
5,005
907,609
-
-
308,981
1,260,023
Due from related parties
-
-
-
-
-
8,334
8,334
Loan receivables
737
1453
6,193
22,270
95,824
-
126,477
Lease receivable
6,062
5,860
23,434
9,369
-
-
44,725
Real estate investment
-
-
-
-
-
228,750
228,750
Investment securities
200,047
173,398
596,116
962,163
263,610
971,953
3,167,287
Total financial assets
1,082,019
428,562
1,533,352
993,802
359,434
3,583,809
7,980,978
Reinsurance contract liabilities
-
-
-
-
-
10,012
10,012
Other liabilities
-
-
-
-
-
231,130
231,130
Lease liabilities
2,744
4,610
36,630
191,729
-
-
235,713
Insurance contract liabilities
-
-
-
-
-
5,136,524
5,136,524
Total financial liabilities
2,744
4,610
36,630
191,729
-
5,377,666
5,613,379
Total interest repricing gap
1,079,275
423,952
1,496,722
802,073
359,434
(1,793,857)
2,367,599
Cumulative gap
1,079,225
1,503,227
2,999,949
3,802,022
4,161,456
2,367,599
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
146
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Interest rate risk (continued)
The Company
Within 1
Month
Within 3
Months
3 to 12
Months
1 to 5
Years
Over
5 Years
Non-Interest
Bearing
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
At 31 December 2024:
Cash and cash equivalents
753,764
486,235
-
1,239,999
Reinsurance contract assets
-
-
-
-
-
2,945,538
2,945,538
Other receivables
-
-
1,156,422
365,337
1,521,759
Due from related parties
654,911
654,911
Loan receivables
273,522
273,522
Lease receivables
2,381
4,762
11,748
-
18,891
Investment securities
239,041
130,453
700,268
127,681
13,000
779,762
1,990,205
Total financial assets
995,186
621,450
1,868,438
127,681
13,000
5,019,070
8,644,825
Other liabilities
-
-
-
-
-
687,125
687,125
Lease liabilities
3,694
8,368
38,339
140,460
-
-
190,861
Insurance contract liabilities
-
-
-
-
-
5,528,916
5,528,916
Total financial liabilities
3,694
8,368
38,339
140,460
-
6,216,041
6,406,902
Total interest repricing gap
991,492
613,082
1,830,099
(12,779)
13,000
(1,196,971)
2,237,923
Cumulative gap
991,492
1,604,574
3,434,673
3,421,894
3,434,894
2,237,923
The Company
At 31 December 2023:
Cash and cash equivalents
513,167
147,873
-
-
-
-
661,040
Reinsurance contract assets
-
-
-
-
-
1,946,357
1,946,357
Other receivables
8,005
5,005
907,932
-
-
95,855
1,016,797
Due from related parties
273,475
273,475
Lease receivables
6,062
5,860
23,434
9,369
-
-
44,725
Real estate investment
-
-
-
-
-
228,750
228,750
Investment securities
189,730
153,230
588,877
107,510
13,000
971,953
2,024,300
Total financial assets
716,964
311,968
1,520,243
116,879
13,000
3,516,390
6,195,444
Other liabilities
-
-
-
-
-
293,159
293,159
Lease liabilities
270
270
26,868
190,551
-
-
217,959
Insurance contract liabilities
-
-
-
-
-
3,644,825
3,644,825
Total financial liabilities
270
270
26,868
190,551
-
3,937,984
4,155,943
Total interest repricing gap
716,694
311,698
1,493,375
(73,672)
13,000
(421,594)
2,039,501
Cumulative gap
716,694
1,028,392
2,521,767
2,448,095
2,461,095
2,039,501
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
147
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
(iii) Market risk (continued)
Interest rate risk (continued)
Interest rate sensitivity
The following table indicates the sensitivity to a reasonably possible change in interest rates, with all other
variables held constant, on the Group’s profit or loss and shareholders’ equity.
The sensitivity of the profit or loss is the effect of the assumed changes in interest rates on income based
on the floating rate non-trading financial assets and financial liabilities. The sensitivity of other
components of equity is calculated by revaluing fixed rate financial assets and liabilities for the effects of
the assumed changes in interest rates. The change in the interest rates will impact the financial assets
and liabilities differently. Consequently, individual analyses were performed. The effect on pre-tax profit
and other components of equity below is the total of the individual sensitivities done for each of the assets
and liabilities. It should be noted that the changes in the pre-tax profit and other components of equity
as shown in the analysis are non-linear.
The Group
Change in Basis
points:
Increase/(decrease)
in Profit before
Taxation
Increase/(decrease)
in Other
Components of
Equity
Change in
Basis
points:
Increase/(decrease)
in Profit before
Taxation
Increase/(decrease)
in Other
Components of
Equity
2024
JMD/USD
2024
$’000
2024
$’000
2023
JMD/USD
2023
$’000
2023
$’000
-25/-25
(301)
-
-25/-25
(110)
-
+25/+25
301
-
+25/+25
110
-
The Company
Change in Basis
points:
Increase/(decrease)
in Profit before
Taxation
Increase/(decrease)
in Other
Components of
Equity
Change in
Basis
points:
Increase/(decrease)
in Profit before
Taxation
Increase/(decrease)
in Other
Components of
Equity
2024
JMD/USD
2024
$’000
2024
$’000
2023
JMD/USD
2023
$’000
2023
$’000
-25/-25
-
-
-25/-25
(55)
-
+25/+25
-
-
+25/+25
55
-
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
148
4. Insurance and Financial Risk Management (Continued)
(c) Financial risk (continued)
Price risk
The Group is exposed to equity securities and real estate price risk because of investments held by the
Group. These investments are classified on the statement of financial position as fair value through
other comprehensive income, fair value through profit or loss.
The table below summarizes the impact of increases/(decreases) on the Group’s pre-tax profit for the
year and on equity. The analysis is based on the assumption that the equity prices had
increased/decreased by 10% (2023 - 10%) with all other variables held constant.
The Group
Equity Securities
Real estate investment
Increase/
(decrease)
in Profit
before
Taxation
Increase/
(decrease)
in Profit
before
Taxation
Effect on
Other
Components
of Equity:
Effect on
Other
Components
of Equity
Effect on
Other
Components
of Equity
Effect on
Other
Components
of Equity
Change in index:
2024
$’000
2023
$’000
2024
JMD/USD
2023
$’000
2024
$’000
2023
$’000
-10% (2023 -10%)
(9,534)
(16,751)
(80,555)
(80,445)
-
(22,875)
10% (2023 +10%)
9,534
16,751
80,555
80,445
-
22,875
The Company
Equity Securities
Real estate investment
Increase/
(decrease)
in Profit
before
Taxation
Increase/
(decrease)
in Profit
before
Taxation
Effect on
Other
Components
of Equity:
Effect on
Other
Components
of Equity
Effect on
Other
Components
of Equity
Effect on
Other
Components
of Equity
Change in index:
2024
$’000
2023
$’000
2024
JMD/USD
2023
$’000
2024
$’000
2023
$’000
-10% (2023 -10%)
(9,534)
(16,751)
(80,138)
(80,445)
-
(22,875)
10% (2023 + 10%)
9,534
16,751
80,138
80,445
-
22,875
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
149
5. Capital Management
The Group’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of
statement of financial position, are:
(a) To comply with the capital requirements set by the regulators of the insurance markets where the Group
operates;
(b) To safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns for
stockholders and benefits for other stakeholders; and
(c)
To maintain a strong capital base to support the development of its business.
Regulations in Jamaica
To assist in evaluating the business and current strategies, a risk-based capital approach is used in the form of
the Minimum Capital Test (MCT) as stipulated by the Jamaican regulator, the Financial Services Commission
(FSC). The MCT is calculated by management. A revised calculation of the MCT came into effect on 22 December
2022 as prescribed by the Insurance (Amendment) Regulations, 2023. The revised calculation stipulated a
required MCT of 150% for 2023 and 175% for 2022. The Company’s ratio was 161% as at 31 December 2023
and 183% at 31 December 2024.
Regulations in Trinidad and Tobago
General Accident Insurance (Trinidad and Tobago) Limited (formerly Motor One Limited) is regulated by The
Central Bank of Trinidad and Tobago under the Insurance Act 2018 which became effective 1 January 2022.
Under the Act, the company is required to maintain a Minimum Regulatory Capital Ratio of 110%. As at year end
the company was in compliant with its Capital Ratio.
Regulations in Barbados
General Accident Insurance (Barbados) Limited is regulated by The Financial Services Commission with
legislative guidance from the Financial Services Act, the Insurance Act and the Exempt Insurance Act. The
company is required to have a margin of solvency determined as the greater of BB$500,000 or 20% of its net
written premium for the financial year. Based on the net admissible assets as at the financial year end, the
company is deemed solvent.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
150
6. Fair Value Estimation
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing
parties in an arm’s length transaction.
In accordance with IFRS 13, the Group discloses fair value measurements for items carried on the statement of
financial position at fair value, by level of the following fair value measurement hierarchy:
(a) Quoted prices (unadjusted) in active markets for identical assets or liabilities are disclosed as Level 1.
(b) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from prices) are disclosed as Level 2.
(c)
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) are
disclosed as Level 3.
The following table presents the Group’s assets that are measured at fair value. There are no liabilities that are
measured at fair value at the year end, and the Group had no transfers between levels during the year.
Group
Level 1
Level 2
Level 3
Total
balance
At 31 December 2024
$’000
$’000
$’000
$’000
Assets
Equity securities
786,927
-
-
786,927
Investment property
-
- 463,401
463,401
Total assets measured at fair value
786,927
- 463,401 1,250,328
Company
Level 1
Level 2
Level 3
Total
$’000
$’000
$’000
$’000
At 31 December 2024
Assets
Equity securities
786,927
-
-
786,927
Investment property
-
- 394,000
394,000
Total assets measured at fair value
786,927
- 394,000 1,180,927
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
151
6. Fair Value Estimation (Continued)
The Group
Level 1
Level 2
Level 3
Total
balance
$’000
$’000
$’000
$’000
At 31 December 2023
Assets
Equity securities
976,286
-
-
976,286
Investment property
-
-
433,578
433,578
Real estate investment
-
-
228,750
228,750
Total assets measured at fair value
976,286
-
662,328
1,638,614
The Company
Level 1
Level 2
Level 3
Total
balance
$’000
$’000
$’000
$’000
At 31 December 2023
Assets
Equity securities
971,953
-
-
971,953
Investment property
-
-
367,000
367,000
Real estate investment
-
-
228,750
228,750
Total assets measured at fair value
971,953
-
595,750
1,567,703
Market price is used to determine fair value where an active market (such as a recognised stock exchange) exists
as it is the best evidence of the fair value of a financial instrument. The quoted market price used for financial
assets held by the Group is the current bid price. These instruments are included in Level 1.
However, market prices are not available for all financial assets held by the Group. Therefore, for financial
instruments where no market price is available, the fair values presented have been estimated using present
value or other estimation and valuation techniques. These valuation techniques maximise the use of observable
market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2. If one or more of the
significant inputs is not based on observable market data, the instrument is included in Level 3.
The following methods have been used to value financial instruments:
(a) Investment securities classified as fair value through other comprehensive income and fair value through profit
or loss are measured at fair value by reference to quoted market prices when available. If quoted market prices
are not available, then fair values are estimated on the basis of pricing models or other recognised valuation
techniques;
(b) The fair value of short-term assets and liabilities maturing within one year is assumed to approximate their
carrying amount. This assumption is applied to liquid assets and the short-term elements of all other financial
assets and financial liabilities;
(c) The fair value of variable rate financial instruments is assumed to approximate their carrying amounts, as these
instruments are expected to reprice at the prevailing market rates;
(d) Financial assets at amortised cost are assumed to approximate fair value as these are issued at terms and
conditions available in the market for similar transactions.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
152
6. Fair Value Estimation (Continued)
Fair Value of Investment Properties and Real Estate Fund
An independent valuation of the Group’s Investment Properties was performed by valuers to determine the fair
value as at 31 December 2024. The Real Estate Fund was sold during the year..
On an annual basis the Group engages external, independent and qualified valuers to determine the fair value of
its Investment Properties and Real Estate Fund.
Sales Comparison Approach
The comparison method of valuation was taken into account by examining values of similar properties in and around
surrounding areas. This approach incorporates unobservable inputs which in the valuer’s judgement reflects suitable
adjustments regarding size, age, condition, time of sale, quality of land and buildings and improvements. The higher
the price per square foot the higher the fair value.
Income Approach
The projected net income of the subject properties are discounted using an appropriate capitalisation rate. The most
significant input to this valuation is the rental rate per square foot and the capitalisation rate. Rental rates of the
subject properties are adjusted to reflect the market rent for properties of similar size, location and condition. The
higher rental rate per square foot the higher the fair value. The higher the capitalisation rate the lower the fair value.
The average rent per square foot ranges between $US8 - $US14.
Sensitivity Analysis
Some of the investment properties and real estate investments held by the Group are measured using an income
approach which considers rental rates and a capitalization rate. The capitalization factor is largely an unobservable
input that have the greatest potential for volatility and have resulted in the classification of the investments in level 3.
The capitalization rates used in the valuations range from 4% to 7%.
Should the capitalization factors increase/decrease by 1 percentage point, it would result in decrease/increase in the
carrying
value
of
investment
properties,
with
all
other
factors
remaining
constant,
of
$4,634,010 (2023 - $6,623,000) for the Group and company.
7. Critical Accounting Estimates and Judgements in Applying Accounting Policies
The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities in the
future. Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances. The
resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions that will have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are as follows:
(a) Measurement of insurance contracts
In applying IFRS 17 to measure liability for claims incurred, the Group discounts cashflows that are expected
to occur more than one year after the date on which the claims are incurred and includes an explicit risk
adjustment for non-financial risk. The areas of judgement and estimate that impact the measurement of
insurance contracts are shown below.
(i)
Discount rate
Discount rates are composed of an observable component, an assumed ultimate discount rate and
interpolation between the two.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
153
7. Critical Accounting Estimates and Judgements in Applying Accounting Policies (Continued)
(a) Measurement of insurance contracts (Continued)
(i)
Discount rate (Continued)
During the observable period, a top down approach was used, where the discount is determined as
the yield implicit in the fair value of a reference portfolio adjusted for differences between the reference
portfolio of assets and respective liability cash flows. Reference portfolios were selected to reflect the
currency of the liabilities, the Group’s investment strategies and the characteristics of the liabilities and
are comprised of a mix of sovereign and corporate bonds available in the markets. The yields are
adjusted from to remove both expected and unexpected credit risk and, where applicable, other asset
characteristics that are not related to the insurance contract liabilities. These adjustments are
estimated using information from observed historical levels of default for bonds included in the
reference portfolio. Observable market information is available for 20 years. The FSC has provided
yields at six-month intervals so no interpolation is required. The yield curves that were used to discount
the estimates of future cash flows are 1 year (2024: 5.74%; 2023: 5.82%), 5 years (2024: 6.37%; 2023:
6.77%) and 10 years (2024: 7.53%; 2023: 8.80%)
(ii)
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk represents the compensation that the Group requires for
bearing the uncertainty about the amount and timing of the cash flows of groups of insurance contracts
and covers non-financial risk. The risk adjustment reflects an amount that an insurer would rationally
pay to remove the uncertainty that future cash flows will exceed the best estimate amount. For
reinsurance contracts held, the risk adjustment for non-financial risk represents the amount of risk
being transferred by the Group to the reinsurer.
The Group has estimated the risk adjustment using a margin approach, calibrated to the cost of capital
and target confidence levels. The margin approach involves applying shocks to the insurance
assumptions used to project expected cash flows so as to produce an increase in the fulfilment cash
flows. Shocks are selected using the projected cost of insurance risk capital such that the resulting risk
adjustment falls within the Group’s target confidence level range. The risk adjustment for insurance
and reinsurance contracts corresponds to a confidence level at 70%% (2023 - 70%).
(iii)
Liability for incurred claims
The determination of the liability for incurred claims represents the liability for future claims payable by
the Group based on contracts for the insurance business in force at the date of the statement of
financial position using several methods, including the Paid Loss Development method, the Incurred
Loss Development method, the Bornhuetter-Ferguson Paid Loss method, the Bornhuetter-Ferguson
Incurred Loss method and the Frequency-Severity method. These liabilities represent the amounts
that will, in the opinion of the actuary, be sufficient to pay future claims relating to contracts of insurance
in force, as well as meet the other expenses incurred in connection with such contracts. A margin for
risk or uncertainty (adverse deviations) in these assumptions is added to the liability. The assumptions
are examined each year in order to determine their validity in light of current best estimates or to reflect
emerging trends in the Group’s experience.
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.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
154
7. Critical Accounting Estimates and Judgements in Applying Accounting Policies (Continued)
(a) Measurement of insurance contracts (Continued)
(i)
Discount rate (Continued)
During the observable period, a top down approach was used, where the discount is determined as
the yield implicit in the fair value of a reference portfolio adjusted for differences between the reference
portfolio of assets and respective liability cash flows. Reference portfolios were selected to reflect the
currency of the liabilities, the Group’s investment strategies and the characteristics of the liabilities and
are comprised of a mix of sovereign and corporate bonds available in the markets. The yields are
adjusted from to remove both expected and unexpected credit risk and, where applicable, other asset
characteristics that are not related to the insurance contract liabilities. These adjustments are
estimated using information from observed historical levels of default for bonds included in the
reference portfolio. Observable market information is available for 20 years. The FSC has provided
yields at six-month intervals so no interpolation is required. The yield curves that were used to discount
the estimates of future cash flows are 1 year (2024: 5.74%; 2023: 5.82%), 5 years (2024: 6.37%; 2023:
6.77%) and 10 years (2024: 7.53%; 2023: 8.80%)
(ii)
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk represents the compensation that the Group requires for
bearing the uncertainty about the amount and timing of the cash flows of groups of insurance contracts
and covers non-financial risk. The risk adjustment reflects an amount that an insurer would rationally
pay to remove the uncertainty that future cash flows will exceed the best estimate amount. For
reinsurance contracts held, the risk adjustment for non-financial risk represents the amount of risk
being transferred by the Group to the reinsurer.
The Group has estimated the risk adjustment using a margin approach, calibrated to the cost of capital
and target confidence levels. The margin approach involves applying shocks to the insurance
assumptions used to project expected cash flows so as to produce an increase in the fulfilment cash
flows. Shocks are selected using the projected cost of insurance risk capital such that the resulting risk
adjustment falls within the Group’s target confidence level range. The risk adjustment for insurance
and reinsurance contracts corresponds to a confidence level at 70%% (2023 - 70%).
(iii)
Liability for incurred claims
The determination of the liability for incurred claims represents the liability for future claims payable by
the Group based on contracts for the insurance business in force at the date of the statement of
financial position using several methods, including the Paid Loss Development method, the Incurred
Loss Development method, the Bornhuetter-Ferguson Paid Loss method, the Bornhuetter-Ferguson
Incurred Loss method and the Frequency-Severity method. These liabilities represent the amounts
that will, in the opinion of the actuary, be sufficient to pay future claims relating to contracts of insurance
in force, as well as meet the other expenses incurred in connection with such contracts. A margin for
risk or uncertainty (adverse deviations) in these assumptions is added to the liability. The assumptions
are examined each year in order to determine their validity in light of current best estimates or to reflect
emerging trends in the Group’s experience.
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.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
155
7. Critical Accounting Estimates and Judgements in Applying Accounting Policies (Continued)
(b) Income taxes
There are many transactions and calculations for which the ultimate tax determination is uncertain during the
ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates
of whether additional taxes will be due. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in
the period in which such determination is made.
(c) Fair value of financial assets determined using valuation techniques
As described in Note 6, where the fair values of financial assets recorded on the statement of financial
position cannot be derived from active markets, they are determined using a variety of valuation techniques
that include the use of discounted cash flows model and/or mathematical models. The inputs to these models
are derived from observable market data where possible, but where observable market data are not
available, judgment is required to establish fair values.
For discounted cash flow analysis, estimated future cash flows and discount rates are based on current
market information and rates applicable to financial instruments with similar yields, credit quality and maturity
characteristics. Estimated future cash flows are influenced by factors such as economic conditions, types of
instruments or currencies, market liquidity and financial conditions of counterparties. Discount rates are
influenced by risk free interest rates and credit risk.
Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(d) Measurement of expected credit loss allowance
The measurement of the expected credit loss allowance for financial assets measured at amortised cost and
FVOCI requires that use of complex models and significant assumptions about future economic conditions and
credit behaviour such as the likelihood of customers defaulting and the resulting losses.
A number of significant judgements are also required in applying the accounting requirements for measuring
ECL, such as
i)
Determining criteria for significant increase in credit risk
ii) Choosing appropriate models and assumptions for the measurement of ECL
iii) Establishing the number and relative weightings of forward-looking scenarios
Further details about judgements and estimates by the Group are set out in 4 (c)
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
156
8. Segment Information
Management has determined the operating segments based on the reports reviewed by the board of directors
that are used to make strategic decisions. All operating segments used by management meet the definition of a
reportable segment under IFRS 8.
The Group is organised into six operating segments. These segments represent the different types of risks that
are written by the entity through various forms of brokers, agents and direct marketing programs, which are located
in Jamaica, Trinidad and Barbados. Management identifies its reportable operating segments by product line
consistent with the reports used by the board of directors. These segments and their respective operations are as
follows:
(a) Motor - Losses involving motor vehicles, this includes liabilities to third parties.
(b) Fire and allied perils - Loss, damage or destruction to insured property used for residential and commercial
purposes as specified on the policy schedule, resulting from fire and allied perils, burglary, theft, or accidental
damage. This includes liability to third parties and domestic employees.
(c)
Marine - Loss or damage to goods from the perils of the seas and other perils whilst in transit from destination
to destination by sea, air or land and from warehouse to warehouse.
(d) Liability - Legal liability of the insured to third parties for accidental bodily injury, death and/or loss of or
damage to property occurring in connection with the insured’s business, subject to a limit of indemnity. In the
case of an employee liability this is legal liability of the insured to pay compensation to its employees in
respect of death, injury or disease sustained during and in the course of their employment, subject to a limit
of indemnity.
(e) Engineering and machinery breakdown - Loss or damage by fire and allied perils including burglary, theft
and accidental damage to specified equipment, including loss or damage resulting from electrical and
mechanical breakdown subject to maintenance.
(f) Miscellaneous Accidents - This operating segment covers the following policies:
•
Fidelity Guarantee - Loss of money or goods owned by the insured (or for which the insured is
responsible) as a result of fraud or dishonesty by an employee.
•
Goods in Transit - Loss, destruction or damage to insured goods by fire and allied perils, including loss
or damage from accidental collision or overturning and whilst in, on or being loaded or unloaded from
any road vehicle or whilst temporarily housed overnight during the ordinary course of transit.
•
Loss of money - Loss, damage or destruction of money including hold-up on premises during and out
of business hours and in transit.
•
Plate glass - Accident breakage to plate glass windows and doors of buildings.
•
Personal accident - Compensation for bodily injury caused by violent, visible, external and accidental
means, which injury shall solely and independently of any other cause result in death or dismemberment
within 12 months of such injury. Subject to the limits specified on the policy schedule.
•
Burglary - Loss of or damage to the insured’s property involving forcible and/or violent entry into or exit
from the building including damage to the premises.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
157
8. Segment Information (Continued)
The segment information provided to the board of directors for the reportable segments for the year ended
31 December 2024 is as follows:
Group
Engineering
Fire
Accident
Liability
Marine
Motor
Total
2024
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Insurance Revenue
521,032
3,729,176
289,134
502,611
173,110
6,600,289
11,815,352
Insurance service
expense
(301,621)
(2,158,537)
(167,567)
(290,678)
(100,540)
(3,820,528)
(6,839,471)
Net expenses from
reinsurance
contracts held
(208,456)
(1,491,976)
(115,677)
(201,086)
(69,258)
(2,640,577)
(4,727,030)
Insurance service
results
10,955
78,663
5,890
10,847
3,312
139,184
248,851
Group
Engineering
Fire
Accident
Liability
Marine
Motor
Total
2023
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Insurance Revenue
435,110
2,500,809
129,240
445,713
130,191
4,934,645
8,575,708
Insurance service
expense
(296,605)
(559,027)
(137,389)
(381,837)
(46,963) (4,215,396)
(5,637,217)
Net expenses from
reinsurance
contracts held
(160,572) (1,691,816)
(18,347)
(227,413)
(68,343)
(75,894)
(2,242,385)
Insurance service
results
(22,067)
249,966
(26,496)
(163,537)
14,885
643,355
696,106
`
Total capital expenditure was as follows:
2024
$’000
2023
$’000
Property and equipment
95,189
120,599
Intangible assets
-
19,173
95,189
139,772
Assets, liabilities and capital expenditure are not reported by segment to the Board of Directors.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
158
Page 69
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
9. Related Party Transactions and Balances
(a) Related party transactions are as follows:
Group
Company
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Dividend income
Affiliated companies
28,826
30,119
28,826
30,119
28,826
30,119
28,826
30,119
Interest income -
Fellow subsidiary
23,688
10,946
23,688
10,946
Parent
-
300
-
300
23,688
11,246
23,688
11,246
Rental and lease payments-
Affiliated company
38,180
68,605
38,180
68,605
Insurance revenue -
Key management
2,061
1,450
2,061
1,450
Parent company
331,223
54,712
331,223
54,712
Fellow subsidiaries
644,496
681,228
644,496
681,228
Affiliates
537,224
413,219
477,566
389,058
1,515,004
1,150,609
1,455,346
1,126,448
Insurance service expense -
Parent company
18,777
558,189
18,777
558,189
Fellow subsidiaries
2,583
8,550
2,583
8,550
Affiliates
47,973
32,411
47,973
32,411
69,333
599,150
69,333
599,150
Dividends declared -
Key management
1,357
1,163
1,357
1,163
Parent company
179,998
162,022
179,998
162,022
181,355
163,185
181,355
163,185
Key management compensation -
Salaries and other short-term
benefits
280,867
201,211
232,931
151,429
Post employment benefits
21,684
25,801
21,684
25,801
302,551
227,012
254,615
177,230
Directors emoluments
Directors’ emoluments (included
above)
7,233
4,744
3,603
2,430
Directors’ fees (included above)
7,233
4,744
3,603
2,430
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
159
Page 70
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
9. Related Party Transactions and Balances (Continued)
(b) The statement of financial position includes the following balances with group companies:
The Group
The Company
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Due from related parties -
Subsidiary
-
-
643,650
265,141
Affiliated company
7,442
8,334
11,261
8,334
7,442
8,334
654,911
273,475
Investment securities -
Shares in affiliated entities (Note 23)
764,029
950,006
764,029
950,006
Included in the investments of the Group are shares in related parties. At 31 December 2024, these shares
represented 6.3% of the total assets (2023 – 9.7%).
No expected credit losses were recognised for receivables from related parties for either year.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
160
10. Insurance service expenses
The Group
The Company
2024
2023
2024
2023
$'000
$'000
$'000
$'000
Incurred claims
3,670,639
3,235,122
2,446,332
2,585,416
Commission expense
1,212,351
1,003,438
849,264
708,620
Amortization of insurance acquisition cash flows
1,317,891
836,323
956,314
593,907
Other insurance service expense
638,590
562,334
443,748
407,777
6,839,471
5,637,217
4,695,658
4,295,720
11.
Net investment income
The Group
The Company
2024
2023
2024
2023
$'000
$'000
$'000
$'000
Interest income
Lease receivable
2,336
4,824
2,336
4,824
Loan due from fellow subsidiary
21,351
6,122
21,351
6,122
Loan due from parent
-
300
-
300
Cash and deposits and investment securities
275,004
220,668
235,731
184,001
298,691
231,914
259,418
195,247
Bond premium amortisation
(1,253)
(1,958)
(1,253)
(1,958)
297,438
229,956
258,165
193,289
Dividend income
28,826 27,267
28,826
27,267
Real estate investment income (Note 26)
- 38,838
-
38,838
Rental income from investment property
20,716 23,604
11,847
23,604
Revaluation gains on investment property (Note 25)
21,539 24,000
21,539
24,000
Unrealised fair value losses on equities
17,828 (2,868)
17,828
(2,869)
Gain on sale of investments
25,353
-
25,353
-
411,700
340,797
363,558
304,129
12.
Other operating income
The Group
The Company
2024
2023
2024
2023
$'000
$'000
$'000
$'000
Foreign exchange (losses)/gains
(22,975) 70,077
(22,975)
70,077
Gain on disposal of property and equipment
- 1,165
- 1,165
Fronting fee
207,745 160,719
207,745 160,719
Miscellaneous income
59,656 55,606
11,624 21,004
244,426 287,567
196,394 252,965
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
161
13.
Expenses by Nature
Management and other expenses by nature are as follows:
2024
The Group
Expenses
attributed to
insurance
acquisition
cash flows
Other
directly
attributable
expenses
Other
operating
expenses
Total
$'000
$'000
$'000
$'000
Advertising costs
58,531
87,500
14,762
160,793
Asset tax
-
-
10,064
10,064
Audit fees
-
16,735
17,772
34,507
Bank charges and fees
42,778
7,963
4,629
55,370
Computer expenses
73,357
33,528
13,993
120,878
Directors’ fees
-
1,801
5,432
7,233
Depreciation and amortisation (Note (27,28,30)
112,349
31,586
33,366
177,301
ECL allowance
-
-
23,074
23,074
Insurance
16,026
3,242
2,316
21,584
Irrecoverable VAT
14,718
20,820
1,675
37,213
Other operating expenses
47,428
18,332
32,710
98,470
Professional fees
37,985
46,115
17,720
101,820
Printing and stationery
23,347
7,170
4,610
35,127
Registration fees
11,396
9,102
2,278
22,776
Rent
57,811
11,323
10,464
79,598
Repairs and maintenance
34,547
12,572
13,763
60,882
Security
13,746
3,288
2,959
19,993
Staff costs (Note 14)
790,352
304,857
279,991
1,375,200
Transportation expenses
7,730
4,951
3,446
16,127
Utilities
54,186
17,705
2,061
73,952
1,396,287
638,590
497,085
2,531,962
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
162
13. Expenses by Nature (Continued)
Management and other expenses by nature are as follows:
2023
The Group
Expenses
attributed to
insurance
acquisition
cash flows
Other
directly
attributable
expenses
Other
operating
expenses
Total
$'000
$'000
$'000
$'000
Advertising costs
58,084
26,062
15,711
99,857
Asset tax
-
-
16,646
16,646
Audit fees
-
13,494
4,586
18,080
Bank charges and fees
27,879
10,203
2,820
40,902
Computer expenses
71,580
32,313
14,275
118,168
Directors’ fees
-
2,372
2,372
4,744
Depreciation and amortisation (Note (27,28,30)
97,883
32,467
56,695
187,045
ECL allowance
1,974
277
277
2,528
Insurance
13,789
54,400
1,965
70,154
Irrecoverable VAT
8,330
7,380
3,168
18,878
Other operating expenses
44,719
15,760
74,463
134,942
Professional fees
47,038
68,147
30,179
145,364
Printing and stationery
19,179
9,153
5,451
33,783
Registration fees
17,073
13,029
4,023
34,125
Rent
25,752
7,393
3,497
36,642
Repairs and maintenance
45,247
15,796
17,049
78,092
Security
11,391
3,104
2,520
17,015
Staff costs (Note 14)
743,904
230,063
217,498
1,191,465
Transportation expenses
9,161
3,841
2,157
15,159
Utilities
42,697
17,080
11,152
70,929
1,285,680
562,334
486,504
2,334,518
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
163
13. Expenses by Nature (Continued)
Management and other expenses by nature are as follows:
2024
The Company
Expenses
attributed to
insurance
acquisition
cash flows
Other
directly
attributable
expenses
Other
operating
expenses
Total
$'000
$'000
$'000
$'000
Advertising costs
35,796
14,863
10,509
61,168
Asset tax
-
-
10,064
10,064
Audit fees
-
11,166
2,792
13,958
Bank charges and fees
26,670
6,378
-
33,048
Computer expenses
54,311
25,390
10,702
90,403
Directors’ fees
-
1,801
1,801
3,602
Depreciation and amortisation (Note (27,28,30)
75,273
24,435
21,410
121,118
ECL allowance
-
-
21,350
21,350
Insurance
14,175
2,471
1,853
18,499
Other operating expenses
33,632
14,212
(4,597)
43,246
Professional fees
33,230
42,820
6,816
82,866
Printing and stationery
15,194
5,778
3,501
24,473
Registration fees
9,423
7,526
1,883
18,832
Rent
57,811
11,323
7,605
76,739
Repairs and maintenance
33,423
11,833
13,420
58,676
Security
8,175
2,654
2,325
13,154
Staff costs (Note 14)
616,842
240,912
216,018
1,073,772
Transportation expenses
6,798
3,097
1,853
11,748
Right of use asset - interest
6,868
2,229
1,953
11,050
Utilities
37,559
14,860
10,373
62,792
1,065,180
443,748
341,631
1,850,559
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
164
13. Expenses by Nature (Continued)
Management and other expenses by nature are as follows:
2023
The Company
Expenses
attributed to
insurance
acquisition
cash flows
Other
directly
attributable
expenses
Other
operating
expenses
Total
$'000
$'000
$'000
$'000
Advertising costs
41,305
18,490
13,073
72,868
Asset tax
-
-
16,646
16,646
Audit fees
-
8,713
3,267
11,980
Bank charges and fees
18,126
4,457
1,530
24,113
Computer expenses
56,592
27,249
11,921
95,762
Directors’ fees
-
1,215
1,215
2,430
Depreciation and amortisation (Note (27,28,30)
77,414
25,133
23,373
125,920
ECL allowance
1,419
-
-
1,419
Insurance
12,479
2,181
1,635
16,295
Other operating expenses
40,382
15,100
61,306
116,788
Professional fees
36,934
47,593
7,576
92,103
Printing and stationery
11,469
4,362
2,642
18,473
Registration fees
15,039
12,012
3,006
30,057
Rent
8,737
1,413
1,021
11,171
Repairs and maintenance
37,272
13,167
15,658
66,097
Security
6,624
2,150
1,884
10,658
Staff costs (Note 14)
538,198
210,193
188,465
936,856
Transportation expenses
7,536
2,940
1,914
12,390
Utilities
27,907
11,409
7,664
46,980
937,433
407,777
363,796
1,709,006
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
165
14.
Staff Costs
The Group
The Company
2024
2023
2024
2023
$'000
$'000
$'000
$'000
Wages and salaries
1,034,041
893,817
776,398
678,145
Statutory contributions
99,017
83,332
80,448
68,414
Pension costs
25,253
20,538
21,950
20,332
Other
216,889
193,778
194,976
169,965
1,375,200
1,191,465
1,073,772
936,856
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
166
15.
Taxation
The company’s shares became listed on the Junior Market of the Jamaica Stock Exchange on 21 September
2011.
On September 27, 2023, the company graduated to the Main Market. The remissions to which the company was
entitled expired in 2022 and as such, the tax rate for the company now stands at 33.33% for the year 2023.
(a) Taxation is based on the profit for the year adjusted for taxation purposes and represents income tax at
33 ⅓%:
The Group
The Company
2024
2023
2024
2023
$'000
$'000
$'000
$'000
Current income tax
101,809
172,554
92,965
158,020
Deferred income tax (Note 31)
(50,465)
19,673
(21,733)
22,724
51,344
192,227
71,232
180,744
(b) The tax charge on the Group’s profit differs from the theoretical amount that would arise using the statutory
tax rate as follows:
The Group
The Company
2024
$'000
2023
$'000
2024
$'000
2023
$'000
Profit before tax
299,668
740,495
292,529
705,181
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Tax calculated at applicable tax rate
100,003
248,832
97,510
235,060
Adjusted for the effects of:
Income not subject to tax
(33,752)
(58,387)
(46,954)
(71,687)
Expenses not deductible for tax
(1,601)
12,959
27,824
24,407
Tax losses for which no deferred tax was
recognised
(14,500)
(8,468)
-
-
Net effect of other charges and allowances
1,194
(2,709)
(7,148)
(7,036)
51,344
192,227
71,232
180,744
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
167
16.
Earnings Per Share
The calculation of earnings per share is based on the net profit for the year and 1,031,250,000
ordinary shares in issue.
2024
2023
Net profit from continuing operations attributable to owners ($’000)
241,333
540,176
Weighted average number of ordinary shares in issue (‘000)
1,031,250
1,031,250
Earnings per share ($)
0.23
0.52
The net profit and retained earnings of the Group are reflected in the accounts of the company and its
subsidiaries as follows:
Net profit
2024
$’000
2023
$’000
Company
221,297
524,437
Subsidiaries
27,027
23,831
248,324
548,268
Retained earnings.
2024
$’000
2023
$’000
Company
2,953,426
2,957,127
Subsidiaries
30,698
10,662
2,984,124
2,967,789
17.
Dividends per Share
The dividends paid in 2024 and 2023 were as follows:
2024
$’000
2023
$’000
Interim dividends: -
21.818 cents per stock unit – December 2024
224,998
-
19.639 cents per stock unit – December 2023
-
202,526
224,998
202,526
18.
Cash and Cash Equivalents
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Cash and bank balances
1,561,813
836,745
753,764
513,167
Short-term deposits
584,565
242,846
486,235
147,873
2,146,378
1,079,591
1,239,999
661,040
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
168
18. Cash and Cash Equivalents (Continued)
Short term deposits comprise term deposits and repurchase agreements with an average maturity of 90 days
(2023 – 90 days) and include interest receivable of $1,874,203 (2023 – $601,863).
The weighted average effective interest rate on short term investments and deposits were as follows:
The Group
The Company
2024
%
2023
%
2024
%
2023
%
US$
4.5
4.0
4.5
4.0
The weighted average effective interest rates on cash balances for the year were as follows:
The Group
The Company
2024
%
2023
%
2024
%
2023
%
US$
0.5
0.5
0.5
0.5
BB$
0.5
0.5
-
-
J$
1.0
1.0
1.0
1.0
19. Reinsurance contract assets
The Group
Reinsurance
contracts held
Remaining
coverage
Incurred claims
Total-2024
Remaining coverage
Incurred claims
Total-2023
Excluding
loss-
recovery
comp.
Loss
comp.
Present
value of
future cash
flows
Risk
adj. for
non-fin.
risk
Excluding
loss-
recovery
comp.
Loss
comp.
Present
value of
future
cash flows
Risk
adj. for
non-fin.
risk
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Reinsurance contract
assets as at 1
January
527,636
-
1,464,368
38,642
2,030,646
321,752
-
1,547,325
65,921
1,934,998
Reinsurance expenses
(5,469,476)
-
(5,379)
91,663
(5,383,192)
(3,270,478)
-
(3,746)
-
(3,274,224)
Incurred claims
recovery
-
-
1,069,601
(25,010)
1,044,591
-
-
1,059,118
(27,279)
1,031,839
Finance
income/expenses from
reinsurance contracts
held recognised
-
-
3,068
-
3,068
-
-
20,804
-
20,804
Cash flows
-
-
-
-
Premiums paid net of
ceding commissions
and other directly
attributable expenses
paid
5,842,261
-
-
-
5,842,261
3,476,362
-
-
-
3,476,362
Recoveries from
reinsurance
-
-
(486,474)
-
(486,474)
-
-
(1,159,133)
-
(1,159,133)
Reinsurance contract
assets as at 31
December
900,421
-
2,045,184
105,295
3,050,900
527,636
-
1,464,368
38,642
2,030,646
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
169
19. Reinsurance contract assets (Continued)
20. Other Receivables
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Prepayments
74,493
97,676
69,033
42,784
Bond collateral recoverable
1,156,422
654,322
1,156,422
670,495
Other receivables
342,131
605,701
296,304
394,302
1,573,046
1,357,699
1,521,759
1,107,581
Included in bond collateral recoverable are amounts due from third parties that are fully collaterised.
The Company
Reinsurance
contracts held
Remaining coverage
Incurred claims
Total-2024
Remaining coverage
Incurred claims
Total-2023
Excluding
loss-recovery
comp.
Loss
comp.
Present
value of
future cash
flows
Risk
adj. for
non-fin.
risk
Excluding
loss-
recovery
comp.
Loss
comp.
Present
value of
future
cash flows
Risk
adj. for
non-fin.
risk
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Reinsurance contract
assets as at 1
January
588,238
-
1,323,616
34,503
1,946,357
407,251
-
1,445,689
61,464
1,914,404
Reinsurance expenses
(4,669,529)
-
(5,118)
81,136
(4,593,511)
(2,785,021)
-
(3,286)
-
(2,788,307)
Incurred claims
recovery
-
-
787,941
(24,810)
763,131
-
-
944,154
(26,961)
917,193
Finance
income/expenses from
reinsurance contracts
held recognised
-
-
(1,381)
-
(1,381)
-
-
18,504
-
18,504
Cash flows
-
-
-
-
Premiums paid net of
ceding commissions
and other directly
attributable expenses
paid
5,309,233
-
-
-
5,309,233
2,966,008
-
-
-
2,966,008
Recoveries from
reinsurance
-
-
(478,291)
-
(478,291)
-
-
(1,081,445)
-
(1,081,445)
Reinsurance contract
assets as at 31
December
1,227,942
-
1,626,767
90,829
2,945,538
588,238
-
1,323,616
34,503
1,946,357
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
170
21. Loans Receivables
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Mortgage loan
128,324
126,477
-
-
Other loans
273,522
-
273,522
-
401,846
126,477
273,522
-
Current portion of loan receivable
118,703
8,383
103,515
-
Non-current portion
283,143
118,094
170,007
-
401,846
126,477
273,522
-
Included within loan receivables are the following secured arrangements:
i.
A mortgage loan secured on property located at 120 and 122 Eastern Main Road, Barataria in Trinidad
repayable by fixed monthly instalments over a period twelve (12) years, bearing a variable interest rate
linked to the average lending rate of commercial banks as published by the Central Bank of Trinidad and
Tobago, subject to a minimum floor rate of 5%. The interest rate is adjustable at each anniversary date,
with the initial rate set at 7% per annum. The loan is further secured by the assignment of an insurance
policy over the mortgaged property.
ii.
A loan issued in October 2024, bearing interest at a fixed rate of 12% per annum, repayable in full in June
2025.
iii.
A loan issued to a related party in September 2024, with a term of five (5) years, bearing interest at a
fixed rate of 10% per annum, repayable in full in September 2029.
22. Lease receivables
The Group and Company
2024
2023
$'000
$'000
Gross investment in finance leases
Not later than one year
19,048
37,694
Later than one year and not later than five years
-
9,524
Later than five years
-
-
19,048
47,218
Less: Unearned income
(157)
(2,493)
18,891
44,725
Net investment in finance leases may be classified as follows:
Later than one year and not later than five years
18,891
35,357
Later than five years
-
9,368
18,891
44,725
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
171
23. Investment Securities
The Group
The Company
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Debt securities -
At amortised cost:
Government Jamaica Securities
13,716
13,716
13,716
13,716
Government of Trinidad and Tobago
58,582
298,284
-
-
Certificate of Deposits
2,239,727 1,453,272
1,060,631
612,902
United States Dollar Corporate Bonds
-
-
-
-
United States Dollar Long Term Deposits
108,922
112,622
108,922
112,622
Other Government Securities
-
287,512
-
287,512
2,420,947
2,165,406
1,183,269
1,026,752
Interest receivable
20,009
25,595
20,009
25,595
Units in Unit Trust Funds at fair value through OCI
4,166
-
-
-
Equity investment at fair value through profit or loss
95,341
167,507
278,044
167,507
Equity investments at fair value through OCI
691,586
808,779
508,883
804,446
3,232,049
3,167,287
1,990,205
2,024,300
Weighted average effective interest rate:
The Group
The Company
2024
%
2023
%
2024
%
2023
%
Government of Jamaica Securities
11.87
6.19
11.87
6.19
Government of Trinidad and Tobago
3
3
1
1
Certificate of Deposits
6.70
7.76
6.70
7.76
United States Long Term Deposits
4.19
4.78
4.19
4.78
United States Dollar Corporate Bonds
8.50
8.50
8.50
8.50
Other Government Securities
-
4.63
-
4.63
Included in investments are Government of Jamaica securities valued at $18,000,000 and a Certificate of
Deposit for $31,826,812 (2023 - $30,900,000.00) which have been pledged with the FSC, pursuant to Section
8(1)(b) of the Insurance Regulations, 2001.
Investments pledged with the Barbados FSC, pursuant to Exempt Insurance Act amounted to BBD $250,0000.
The Group’s holdings in equity investments for 2024 and 2023 includes investment in affiliated companies
(Note 9).
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
172
24. Investment in Subsidiaries
The Company
2024
2023
$’000
$’000
General Accident Insurance (Trinidad and Tobago) Limited
(75%), 491,910 Ordinary shares)
441,624
441,624
General Accident Insurance (Barbados) Limited
(80%) 2,400,000 Ordinary shares
165,893
165,893
607,517
607,517
25. Investment Property
The Group
The Company
2024
2023
2024
2023
$'000
$'000
$'000
$'000
At 1 January
433,578
407,507
367,000
343,000
Additions
5,461
-
5,461
-
Revaluation (credited to profit or loss) (Note 11)
21,539
24,000
21,539
24,000
Translation differences
2,823
2,071
-
-
At 31 December
463,401
433,578
394,000
367,000
Property income and direct expenses including repairs and maintenance in relation to investment properties are
as follows:
The Group
The Company
2024
2023
2024
2023
$'000
$'000
$'000
$'000
Rental income
31,881
31,381
22,999
23,604
Direct costs
(11,152)
(6,152)
(11,152)
(6,152)
The properties of the Group were valued at current market value. The Trinidad properties were valued as at
December 2023 by Bhanmati Seecharan in Trinidad. In December 2023, NAI Jamaica Langford and Brown did
the valuations for Jamaica. Both parties are independent qualified property appraisers and valuators. The values
for the properties have been established using the sales comparison method, which considers the values of similar
properties in and around surrounding areas.
The valuation of investment property has been classified as Level 3 of the fair value hierarchy under IFRS 13, Fair
Value Measurement. The valuations have been performed using a comparable sales approach but, as there have
been a limited number of similar sales in the location, unobservable inputs determined based on the valuators’
judgement regarding size, age, condition were utilised.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
173
26. Real Estate Investment
The Group and
Company
2024
$’000
2023
$’000
At 1 January
228,750
189,912
Revaluation (credited to profit or loss)
-
38,838
Disposal
(228,750)
-
Closing
-
228,750
This represented the Group's beneficial interest in a property which was leased to third parties and held in trust for
a group of investors under a Trust Deed managed by Scotia Investments Jamaica Limited.
The property was carried at fair value through the profit or loss statement and was sold during the year.
The fair value of the investment was at level 3 in the fair value hierarchy, as is consistent with the requirements
of IFRS 13 (Note 6).
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
174
27. Property and Equipment
The Group
Land and
Buildings
Furniture,
Fixtures &
Equipment
Motor
Vehicles
Total
Cost -
At 1 January 2023
705,474
242,925
16,321
964,720
Additions
22,203
42,997
55,399
120,599
Translation differences
12,947
2,589
202 15,738
At 31 December 2023
740,624
288,511
71,922
1,101,057
Adjustments
-
80
-
80
Additions
23,476
32,694
39,019
95,189
Disposal
-
(522)
-
(522)
Translation differences
17,807
4,680
276
22,763
At 31 December 2024
781,907
325,443
111,217
1,218,567
Depreciation -
At 1 January 2023
79,742
37,723
7,015
124,480
Charge for the year
24,184
48,493
7,154
79,831
Translation differences
22
464
89 575
At 31 December 2023
103,948
86,680
14,258
204,886
Adjustments
-
(253)
253
-
Charge for the year
25,217
47,803
18,724
91,744
Relieved on Disposal
-
(46)
-
(46)
Translation differences
293
1,173
161
1,627
At 31 December 2024
129,458
135,357
33,396
298,211
Net book value
31 December 2024
652,449
190,086
77,821
920,356
31 December 2023
636,676
201,831
57,664
896,171
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
175
27.
Property and Equipment (Continued)
The Company
Land and
Buildings
Furniture,
Fixtures &
Equipment
Motor
Vehicles
Total
$’000
$’000
$’000
$’000
Cost -
At 1 January 2023
292,086
204,446
8,713
505,245
Additions
22,204
18,742
55,398
96,344
At 31 December 2023
314,290
223,188
64,111
601,589
Adjustments
-
80
-
80
Additions
23,476
21,181
29,862
74,519
At 31 December 2024
337,766
244,449
93,973
676,188
Depreciation -
At 1 January 2023
67,363
88,917
3,654
159,934
Charge for the year
17,490
34,888
6,040
58,418
At 31 December 2023
84,853
123,805
9,694
218,352
Charge for the year
17,938
31,903
17,282
67,123
At 31 December 2024
102,791
-
155,708
-
26,976
-
285,475
Net Book Value -
31 December 2024
234,975
88,741
66,997
390,713
31 December 2023
229,437
99,383
54,417
383,237
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
176
28. Intangible Assets
The Group
Renewal
Rights
Distribution
Relationships
Licence
Website
Computer
Software
Total
$’000
$’000
$’000
$’000
$’000
$’000
At Cost -
At 1 January 2023
38,221
12,070
142,826
12,487
13,442
219,046
Additions
-
-
-
-
19,173
19,173
Translation differences
-
-
-
-
411
411
At 31 December 2023
38,221
12,070
142,826
12,487
33,026
238,630
Translation differences
-
-
-
-
652
652
At 31 December 2024
38,221
12,070
142,826
12,487
33,678
239,282
-
Amortisation -
-
At 1 January 2023
30,577
6,035
-
10,369
5,635
52,616
Charge for the year
7,644
1,509
-
1,927
3,020
14,100
Translation differences
-
-
-
-
79
79
At 31 December 2023
38,221
7,544
-
12,296
8,734
66,795
Charge for the year
-
1,509
-
192
4,483
6,184
Translation differences
-
-
-
-
196
196
At 31 December 2024
38,221
9,053
-
12,488
13,413
73,175
Net Book Value -
-
31 December 2024
-
3,017
142,826
(1)
20,265
166,107
31 December 2023
-
4,526
142,826
191
24,292
171,835
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
177
28. Intangible Assets (Continued)
The Company
Website
Computer
Software
Total
$’000
$’000
$’000
At Cost -
At 1 January 2023
12,487
5,560
18,047
Additions during year
-
9,362
9,362
Disposals during the year
-
-
At 31 December 2023
12,487
14,922
27,409
Additions during year
-
-
-
Disposals during the year
-
-
At 31 December 2024
12,487
14,922
27,409
Amortisation
-
At 1 January 2023
10,368
4,847
15,215
Charge for the year
1,927
1,340
3,267
Disposals during the year
-
-
-
At 31 December 2023
12,295
6,187
18,482
Charge for the year
189
1,960
2,149
Disposals during the year
-
-
-
At 31 December 2024
12,484
8,147
20,631
Net Book Value -
-
31 December 2024
3
6,775
6,778
31 December 2023
192
8,735
8,927
29. Other Liabilities
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Statutory contributions payable
4,122
5,728
4,122
5,728
Accrued expenses
41,863
30,042
6,727
29,093
Sales and premium tax payable
338,149
194,297
338,149
258,254
Other payables
260,220
1,063
338,127
84
644,354
231,130
687,125
293,159
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
178
30. Leases
This note provides information for leases where the Group is a lessee.
(a) Right of use assets
Right of Use-Asset
The Group
The Company
$’000
$’000
Cost
1 January 2023
287,490
205,750
Additions
280,005
260,390
Disposal
(174,942)
(151,454)
Adjustments including FX
1,821
827
1 January 2024
394,374
315,513
Additions
25,373
-
Disposal (termination)
(33,131)
-
Adjustments incl FX
1,812
-
31 December 2024
388,428
315,513
Accumulated Depreciation
1 January 2023
237,731
180,715
Charge for the year
93,154
64,234
Disposal(termination)
(174,171)
(151,454)
Translation difference
859
233
1 January 2024
157,573
93,728
Charge for the year
69,782
51,846
Disposal(termination)
(33,131)
-
Translation difference
1,338
-
31 December 2024
195,562
145,574
Net Book Value
31 December 2024
192,866
169,939
31 December 2023
236,801
221,785
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
179
30. Leases (Continued)
Amounts recognized in the statement of financial position
The Group
The Company
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Right-of-use assets
Motor Vehicles
-
-
-
-
Land and buildings
192,866
236,801
169,939
221,785
192,866
236,801
169,939
221,785
Lease liabilities
Current
78,311
45,162
27,408
27,408
Non-current
138,759
190,551
163,453
190,551
217,070
235,713
190,861
217,959
(b) Lease liabilities
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
1 January
235,425
53,921
217,959
28,198
Additions
29,867
269,870
-
260,390
Lease payments
(59,031)
(110,547)
(54,863)
(89,279)
Interest on lease liability
13,375
14,326
11,051
12,196
Foreign exchange and other adjustments
(2,566)
8,143
16,714
6,454
31 December
217,070
235,713
190,861
217,959
(c)
Amounts recognized in profit or loss
The statement of profit or loss shows the following amounts relating to right-of-use assets:
The Group
The Company
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Depreciation - Land and buildings
69,782
93,154
51,846
64,234
Interest expense
13,375
14,326
11,051
12,196
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
180
31. Deferred Income Taxes
Deferred income taxes are calculated in full on temporary differences under the liability method using a principal
tax rate of 33.33%.
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Deferred income tax assets
44,511
7,342
16,282
7,342
Deferred income tax liabilities
(87,644)
(100,940)
(39,035)
(51,828)
Net liabilities
(43,133)
(93,598)
(22,753)
(44,486)
The net movement on the deferred income tax account is as follows:
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
At the beginning of the year
(93,598)
(73,925)
(44,486)
(21,762)
Profit or loss (Note 15)
50,465
(19,673)
21,733
(22,724)
At end of year
(43,133)
(93,598)
(22,753)
(44,486)
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
181
31. Deferred Income Taxes (Continued)
Deferred income tax assets and liabilities are attributable to the following items:
The Group
The Company
2024
2023
2024
2023
Deferred income tax assets
$’000
$’000
$’000
$’000
Accrued vacation
9,422
7,342
9,422
7,342
Accelerated depreciation
3,932
-
6,860
-
Unutilized losses
31,157
-
-
-
44,511
7,342
16,282
7,342
The Group
The Company
2024
2023
2024
2023
Deferred income tax liabilities
$’000
$’000
$’000
$’000
Accelerated depreciation
-
17,294
-
16,785
Intangible assets
44,852
48,603
(3,757)
-
Interest receivable
42,792
35,043
42,792
35,043
87,644
100,940
39,035
51,828
The deferred tax movement in the profit or loss comprises the following temporary differences
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Accelerated depreciation
(21,226)
16,049
(23,645)
16,049
Intangible assets
(3,751)
(3,051)
(3,757)
-
Accrued vacation
(2,080)
(2,447)
(2,080)
(2,447)
Interest receivable
7,749
9,122
7,749
9,122
Unutilized tax
(31,157)
-
-
(50,465)
19,673
(21,733)
22,724
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
182
32. Insurance contract assets and liabilities
Reconciliation of the insurance contract liabilities and assets
The following tables present reconciliations of insurance contract liabilities and assets.
Group
LRC
LIC
Total-2024
LRC
LIC
Total-2023
Excluding
loss comp.
Loss
comp.
Present
value of
future cash
flows
Risk
adj. for
non-fin.
Risk
Excluding
loss comp.
Loss
comp.
Present
value of
future
cash flows
Risk adj. for
non-fin.
Risk
Insurance contract
liabilities as at 1
January
1,499,197
3,479,165
133,029
5,111,391
858,758
3,783,098
169,338
4,811,194
Insurance revenue
(11,426,923)
-
-
-
(11,426,923)
(8,575,708)
-
-
(8,575,708)
Incurred claims
and other directly
attributable
expenses
-
-
5,336,654
184,924
5,521,578
-
4,837,203
(36,309)
4,800,894
Insurance
acquisition cash
flows amortization
1,317,893
-
-
-
1,317,893
836,323
-
-
836,323
Insurance service
expenses
1,317,893
-
5,336,654
184,924
6,839,471
836,323
4,837,203
(36,309)
288,074
Insurance service
result
(10,109,030)
-
5,336,654
184,924
(4,587,452)
(7,739,385)
4,837,203
(36,309)
(8,405,800)
Movement on
discount
-
-
105,156
-
105,156
-
118,275
-
118,275
Total amounts
recognised in
comprehensive
income
(10,109,030)
-
5,441,810
184,924
(4,482,296)
(7,739,385)
4,955,478
(36,309)
(8,405,800)
Investment
components
-
-
-
-
-
-
-
-
-
Insurance acquisition
cash flows asset
derecognised
-
-
27,592
-
27,592
-
890
-
890
Other pre-recognition
cash flows
derecognised and
other changes
-
-
11,381
-
11,381
-
(4,377)
-
(4,377)
Cash flows
-
-
-
-
-
-
Premiums received
12,261,217
-
-
-
12,261,217
9,286,712
-
-
9,286,712
Claims and other
directly attributable
expenses paid
-
-
(4,613,037)
-
(4,613,037)
-
(5,255,924)
-
(5,255,924)
Insurance
acquisition cash
flows
(1,361,069)
-
-
-
(1,361,069)
(906,888)
-
-
(906,888)
Total cash flows
10,900,148
-
(4,574,064)
-
6,326,084
8,379,824
(5,259,411)
-
3,120,413
Insurance contract
liabilities as at 31
December
2,290,315
-
4,346,911
317,953
6,955,179
1,499,197
3,479,165
133,029
5,111,391
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
183
32. Insurance contract assets and liabilities (Continued)
Reconciliation of the insurance contract assets and liabilities (Continued)
Company
LRC
LIC
Total-2024
LRC
LIC
Total-2023
Excluding
loss comp.
Loss
com
p.
Present
value of
future cash
flows
Risk
adj. for
non-fin.
Risk
Excluding
loss comp.
Loss
comp.
Present value
of future cash
flows
Risk adj. for
non-fin.
Risk
Insurance contract
liabilities as at 1
January
1,044,151
2,507,936
92,738
3,644,825
600,548
2,792,109
121,140
3,513,797
Insurance revenue
(8,693,904)
-
-
(8,693,904)
(6,752,418)
(6,752,418)
Incurred claims and
other directly
attributable expenses
-
3,578,758
160,586
3,739,344
3,730,215
(28,402)
3,701,813
Changes that relate to
past service – changes
in the FCF relating to
the LIC
-
-
-
-
-
Insurance acquisition
cash flows
amortization
956,314
-
-
956,314
593,907
593,907
Insurance service
expenses
956,314
3,578,758
160,586
4,695,658
593,907
-
3,730,215
(28,402)
4,295,720
Insurance service
result
(7,737,590)
3,578,758
160,586
(3,998,246)
(6,158,511)
-
3,730,215
(28,402)
(2,456,698)
Movement on
discount
-
95,040
-
95,040
92,205
92,205
Total amounts
recognised in
comprehensive
income
(7,737,590)
3,673,798
160,586
(3,903,206)
(6,158,511)
-
3,822,420
(28,402)
(2,364,493)
Investment components
-
-
Insurance acquisition
cash flows asset
derecognised
-
30,926
-
30,926
2,950
2,950
Other pre-recognition
cash flows
derecognised and other
changes
-
10,693
-
10,693
(2,177)
(2,177)
Cash flows
-
-
-
-
-
Premiums received
9,795,089
-
-
9,795,089
7,281,900
7,281,900
Claims and other
directly attributable
expenses paid
-
(3,029,757)
-
(3,029,757)
(4,107,366)
(4,107,366)
Insurance
acquisition cash
flows
(1,019,654)
-
-
(1,019,654)
(679,786)
(679,786)
Total cash flows
8,775,435
-
(2,988,138)
-
5,787,297
6,602,114
-
(4,106,593)
-
2,495,521
Insurance contract
liabilities as at 31
December
2,081,996
-
3,193,596
253,324
5,528,916
1,044,151
-
2,507,936
92,738
3,644,825
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
184
32. Insurance contract assets and liabilities (Continued)
An actuarial valuation was performed to value the policy and claims liabilities of the Group as at 31 December 2024
in accordance with the Insurance Act of Jamaica by the appointed actuary, Josh Worsham, FCAS, MAAA of Mid
Atlantic Actuarial. The Insurance Act requires that the valuation be in accordance with accepted actuarial principles.
The actuary has stated that his report conforms to the standards of practice as established by the Canadian Institute
of Actuaries, with such changes as directed by the Financial Services Commission, specifically, that the valuation of
some policy and claims liabilities not reflect the time value of money.
For consistency, the management also performed a valuation for the policy and claim liabilities of the subsidiaries
as at 31 December 2024 using the same appointed actuary.
In arriving at his valuation, the actuary employed the Paid Loss Development method, the Incurred Loss
Development method, the Bornhuetter-Ferguson Paid Loss method, the Bornhuetter-Ferguson Incurred Loss
method and the Frequency-Severity method.
In using the Paid/Incurred Loss Development methods, ultimate losses are estimated by calculating past
paid/incurred loss development factors and applying them to exposure periods with further expected paid/incurred
loss development. The Bornhuetter-Ferguson Paid/Incurred Loss methods is a combination of the Paid/Incurred
Loss Development methods and a loss ratio method; however, these expected losses are modified to the extent
paid/incurred losses to date differ from what would have been expected based on the selected paid/incurred loss
development pattern. Finally, the Frequency-Severity method is calculated by multiplying an estimate of ultimate
claims with an estimate of the ultimate severity per reported claim.
In his opinion dated 25 April 2025 for the Company, the actuary found that the amount of policy and claims liabilities
represented in the statement of financial position at 31 December 2024 makes proper provision for the future
payments under the Group’s policies and meets the requirements of the Insurance Act and other appropriate
regulations of Jamaica; that a proper charge on account of these liabilities has been made in profit or loss; and that
there is sufficient capital available to meet the solvency standards as established by the Financial Services
Commission.
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
185
33. Share Capital
2024
$’000
2023
$’000
Authorised -
1,100,000,000 Ordinary shares of no par value
Issued and fully paid -
1,031,250,000 Ordinary shares of no par value
470,358
470,358
34. Capital Reserves
The Group
The Company
2024
2023
2024
2023
$’000
$’000
$’000
$’000
At beginning of and end of year
161,354
161,354
152,030
152,030
The capital reserves at year end represent realised surpluses.
35. Fair Value Reserve
This represents the unrealised surplus on the revaluation of investments classified as Fair Value through Other
Comprehensive Income (FVOCI).
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
186
36. Non-Controlling Interest
2024
$’000
2023
$’000
Beginning of year
363,785
349,788
NCI share of total comprehensive income
24,606
13,997
388,391
363,785
All subsidiary undertakings are included in the consolidation. The proportion of the voting rights in the subsidiary
undertakings held directly by the parent company do not differ from the proportion of ordinary shares held.
Summarised financial information on subsidiary with material non-controlling interests.
General Accident Insurance Company (Trinidad and Tobago) Limited
(a) Summarised Statement of Financial Position
2024
$’000
2023
$’000
Assets
2,650,652
2,343,484
Liabilities
(1,665,446)
(1,462,366)
Net Assets
985,206
881,118
(b) Summarised Statement of Comprehensive Income
2024
2023
$’000
$’000
Revenue
1,977,515
1,305,112
Profit before taxation
8,287
56,637
Taxation
19,385
(14,534)
Profit after tax
27,672
42,103
Other comprehensive income
66,914
25,217
Total Comprehensive Income
94,586
67,320
Total Comprehensive Income attributable to NCI
23,647
16,830
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
187
36. Non-Controlling Interest (Continued)
General Accident Insurance Company (Trinidad) Limited
(c)
Summarised Statement of Cash Flows
2024
$’000
2023
$’000
Cash flows from operating activities
Cash generated from operations
120,480
201,290
Income taxes
19,385
(14,534)
Net cash provided by operating activities
139,865
186,756
Net cash generated from/(used in) investing activities
49,679
(179,438)
Net cash used in financing activities
(22,356)
(13,951)
Net increase/(decrease) in cash and cash equivalents
167,188
(6,633)
Cash and cash equivalents at beginning of year
270,895
270,266
Exchange gains
25,823
7,262
463,906
270,895
Summarised financial information on subsidiary with material non-controlling interests.
General Accident Insurance Company (Barbados) Limited
(a) Summarised Statement of Financial Position
2024
$’000
2023
$’000
$’000
$’000
Assets
638,042
263,702
Liabilities
(555,870)
(186,323)
Net Assets
82,172
77,379
(b)
Summarised Statement of Comprehensive Income
2024
2023
$’000
$’000
Revenue
755,504
565,965
Profit/(Loss) before taxation
361
(12,169)
Taxation
-
-
Profit/(Loss) after tax
361
(12,169)
Other comprehensive income
4,432
(1,994)
Total Comprehensive Income
4,793
(14,163)
Total Comprehensive Income attributable to NCI
959
(2,833)
General Accident Insurance Company Jamaica Limited
Notes to the Financial Statements
31 December 2024
(expressed in Jamaican dollars unless otherwise indicated)
188
36. Non-Controlling Interest (Continued)
General Accident Insurance Company (Barbados) Limited
(c)
Summarised Statement of Cash Flows
2024
$’000
2023
$’000
Cash flows from operating activities
Cash generated from operations
299,379
(21,025)
Income taxes
233
-
Net cash used in operating activities
299,612
(21,025)
Net cash generated from investing activities
1,675
20,338
Net cash used in financing activities
(9,166)
(8,880)
Net increase/(decrease) in cash and cash equivalents
292,121
(9,567)
Cash and cash equivalents at beginning of year
147,657
158,338
Exchange gains on cash and cash equivalents
3,160
(1,114)
442,938
147,657
37. Pension Scheme
Employees participate in a defined contribution pension scheme operated by a related company, T. Geddes Grant
(Distributors) Limited. The scheme is open to all permanent employees, as well as the employees of certain related
companies. The scheme is funded by employees’ compulsory contribution of 5% of earnings and voluntary
contributions up to a further 5%, as well as employer’s contribution of 5% of employees’ earnings. The scheme is
valued triennially by independent actuaries. The results of the most recent actuarial valuation, as at
31 December 2020, indicated that the scheme was adequately funded at that date.
Pension contributions for the period totalled $21,950,045.64 (2023 – $20,538,000) and are included in staff costs
(Note 14).
38. Contingency
The Group is involved in certain legal proceedings incidental to the normal conduct of business. Management
believes that none of these legal proceedings, individually or in aggregate, will have a material effect on the Group.
No provision has been made as Management and professional advice indicates that it is unlikely that any significant
loss will arise.
I/We
(insert name) of
(address) being a shareholder(s) of the above-named Company, hereby appoint:
(proxy name) of
(address) or failing him
(alternate proxy) of
(address)
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held
at 9 am on November 6, 2024, 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):
(tick as appropriate)
ORDINARY RESOLUTIONS
1. To receive the report of the Board of Directors and the audited accounts of the
For Against
Company for the year ended December 31, 2024.
2. To authorise 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 P.B.Scott as a Director of the Board of the Company.
For Against
3. (b) To re-appoint Melanie Subratie as a Director of the Board of the Company.
For Against
3. (c) To re-appoint Christopher Nakash as a Director of the Board of the company. For Against
4. (a) To authorise the Board of Directors to fix the remuneration of the Directors.
For Against
5. To approve the amount of interim dividends declared by the Board during the
financial year ended 31st December 2024, being $224,998,125.07 or 21.818 cents
per ordinary share, as the final dividend for the year.
Signed this
day of
2025:
Signed:
(signature of primary shareholder)
Signed:
(signature of joint shareholder, if any)
Name:
(print name of primary shareholder)
Name:
(print name of joint shareholder, if any)
For
Against
No.
Resolution details
Vote for or against
PROXY FORM
NOTES
NOTES
NOTES