The Tribune

A BISX-listed life and health insurer yesterday disclosed that ordinary shareholders suffered a $2.3m net loss for the 2020 first quarter as COVID-19’s economic impact started to bite.

Colina Holdings Bahamas, the parent company for Colina Insurance, blamed a reduction in the value of its investment holdings - chiefly securities - for a loss equivalent to $0.09 per share. It also suffered a 43.5 percent year-over-year revenue decline as the pandemic forced an economic shutdown during the quarter’s last two weeks.

The bottom line results represented a $4.9m reversal to the $2.6m profits generated during the three months to end-March 2019. Colina Holdings Bahamas said this year’s figures were hit by “mark-to-market” price adjustments on its investment securities, with the losses reflected in the first quarter’s net investment income.

The insurance parent suffered a net $7.2m investment loss compared to a net investment income gain of $10.6m in the prior year. “The company ensures that, as part of its long-term strategy, it maintains a strong capital base to withstand these interim periods of price volatility,” said Terence Hilts, Colina Holdings Bahamas chairman.

Total revenues for the 2020 first quarter were down $19.9m, totalling $25.8m for the three months ended March 31, compared to $45.7m last year. Net premium revenues stood at $28.1m compared to the prior year period’s $30.1m. Net policyholder benefits increased by $0.9m to $25.2m for the first three months of 2020 compared to $24.2m in the prior year.

Offsetting the impact of the negative investment returns was a release of provisions for future policyholder benefits totalling $8.9m compared to an increase in reserves for the 2019 first quarter totalling $5.3m.

Colina Holdings Bahamas said the mark-to-market adjustments reflected in the income statement and revaluation reserve had impacted the balance sheet value of its investment securities, which fell to $420.9m at end-March compared to $445.8m at year-end 2019. Total assets at March 31, 2020, were $779.9m, with invested assets remaining the largest component of total assets at 76.3 percent.

“Overall, we are pleased that the company continues to have the strong balance sheet to weather periodic income statement volatility, and we remain focused on ensuring that the company’s capital base remains with sufficient margins to provide Colina Holdings Bahamas the flexibility it needs to continue to meet its obligations to its policyholders and customers within this challenging economic environment,” said Mr Hilts.