The Tribune

Colina Holdings (Bahamas) suffered a 26 percent year-over-year net income decline in 2018 as a result of increased policyholder claims, it revealed last night.

The BISX-listed life and health insurance holding company reported that net income attributable to equity shareholders fell by one-quarter, dropping from $16.6m in 2017 to $12.3m last year.

It said in a statement that the increased policyholder claims offset growth in revenues, which rose more narrowly from $165.1m in 2017 to $168.5m last year, while total assets expanded from $743.5m to $759.9m at year-end 2018.

“Despite net income being lower in 2018 compared to prior year, Colina Holdings (Bahamas) remains focused on its long-term profitability objectives. These objectives are bolstered by the company’s financial strength, sound investment principles and diverse portfolio,” said Terence Hilts, its chairman.

“As is expected in our industry, the nature of our business does introduce some fluctuations in profitability from year-to-year. We have enjoyed successive years of below average claims experience. However, in 2018 the reverse was the case.

“Our primary objective and commitment to our policyholders is that we fulfill our obligations to have the financial capacity and strength to pay claims as they become due. We are pleased to note that despite the increased volume of claims we were able to meet these obligations in the regular course of business.”

Colina Holdings (Bahamas) said its strong capital base and focus on high-quality assets enabled it to pay more than $2.4m in preference share distributions, and $5.4m in dividends to its ordinary shareholders, during 2018.

It added that it had realised efficiencies through the decrease in general and administrative expenses to $33.4m, a sum equivalent to 19.8 percent of total revenues. This compared to $34.3m or 20.8 percent of total revenues in 2017.

Colina Holdings (Bahamas) investment portfolio saw an increase in net investment income to $26.6m compared to $21.6m in the prior year.

Invested assets increased by $24m to $620.6m, compared to $596.6m in the prior year, and remain a significant proportion of total assets. From a capital standpoint, Colina strengthened its total equity position to $199m, a rise of $4.7m over the prior year. Ordinary shareholder equity increased to $132.8m compared to $129.7m in 2017.

“Looking ahead, we are very optimistic about the future,” said Mr Hilts. “We have grown revenues and investment yields, and stayed true to our disciplined focus on risk management. We will continue to focus on executing our growth strategies, enabling us to meet the financial needs of our customers.”