J.S. Johnson Insurance Agents and Brokers' financial results for the first quarter of 2017, which were released yesterday, revealed that net income fell by 50 percent and the impact of Hurricane Matthew partly led to the company's performance being "down" for the period.
Managing Director Alister McKellar wrote in his contribution to the report that the insurance company made a "prudent" decision to reduce dividend payments by two cents to 14 cents per share for the quarter.
He noted that the local insurance industry as a whole suffered a "significant loss" from the impact of Hurricane Matthew.
McKellar pointed out that profitability from underwriting services was "adversely affected" during the first quarter as a result of increased claim costs. Expenses for net claims increased by an estimated 30 percent.
"Net income fell by 50 percent, with a reduction in net commissions and fees from $4,605,929 to $3,911,621," the report states.
"In addition, an unrealized loss on investment in securities of $156,081 occurred, as local stock prices fell, compared to a gain of $140,981 last year.
"Underwriting profitability was adversely affected again this quarter, as claim costs continued to rise. This, coupled with our loss on the investment portfolio and the decrease in net commissions and fees, resulted in profits falling to $450,273."
Despite the company's heightened expenses, the director provided a positive outlook for The Bahamas' economy.
"We expect the economy to remain sluggish in the short term, but are optimistic that the opening of Baha Mar will herald a long overdue recovery in the months ahead," he said.
McKellar said the company was able to contain expenses in its agents and
brokers division.
"This offset the majority of income shortfall and should continue to have a positive impact for the remainder of the year," he said.
"The net effect was a slight decline in overall income from $724,816 to $666,620 in the quarter."

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