NASSAU, BAHAMAS — A local BISX-listed insurer has acknowledged challenges in mitigating the impact of higher insurance rates on consumers as it renewed concerns over the lack of reinsurance capacity despite surging demand for property coverage in the region.

Alister McKellar, JS Johnson's managing director, in his latest quarterly update to the company's shareholders, noted: "We continue to grapple with a lack of reinsurance capacity, despite surging demand for property coverage in the region. In such a "hard" global insurance market—impacted by everything from wars in Europe and the Middle East to energy supply chain interruptions— this translates into higher costs. In addition, the potential for another Dorian-like storm has even prompted some insurers to reconsider their very presence in the region. Not a welcome situation for any local insurer."

He added: "We're committed to controlling our own costs and working with our partners to assuage the impact of higher rates on both existing and new customers. But the struggle is real and it continues."

The company's fourth-quarter performance for 2023 reflected an 8.2 percent gain in Agency Net income ($6.55 million to $7.09 million) and a nearly 15 percent increase in insurance revenue from its Underwriting segment ($81 million to $93 million). 

"Underwriting also enjoyed a 31.9 percent bump in unrealized gain on investments in securities that mitigated a 20 percent rise in insurance service expenses. All these factors contributed to a 34.2 percent increase in consolidated net income for the 12 months ended December 31, 2023, resulting in a nearly 48 percent increase in earnings per share for the company ($0.80 to $1.18) for the period," McKellar noted.

Click here to read more on the Eye Witness News website