Colina Holdings Bahamas Limited (CHBL) Reports First Quarter Financial ResultsCHBL’s Q1 results impacted by fluctuations in mark-to-market adjustments
Nassau, The Bahamas, May 29, 2020 – Colina Holdings Bahamas Limited (“CHBL” or “the Company”) today released its unaudited consolidated interim financial results for the period ended March 31, 2020.
The Company recorded a net loss attributable to ordinary shareholders of ($2.3) million or ($0.09) per ordinary share. This compares to net income attributable to ordinary shareholders of $2.6 million and $0.10 per ordinary share for the same period in 2019. The Company’s results were largely impacted by mark-to-market price adjustments on its investment securities.
These mark-to-market revaluation losses were reflected in Q1’s net investment income which totalled a net investment loss of $7.2 million compared to a net investment income gain of $10.6 million in the prior year.
“The Company ensures that as part of its long-term strategy, that it maintains a strong capital base to withstand these interim periods of price volatility,” said Terence Hilts, Chairman of CHBL.
Total revenues for the first quarter were down $19.9 million, totalling $25.8 million for the 3 months ended March 31, 2020 compared to total revenues of $45.7 million for the same period last year.
Net premium revenues for the first quarter of 2020 totalled $28.1 million compared to the prior year period of $30.1 million. Net policyholder benefits increased by $0.9 million to $25.2 million for the first 3 months of 2020 compared to $24.2 million in the prior year.
Offsetting the impact of the negative investment returns is a release of provisions for future policyholder benefits totalling $8.9 million compared to an increase in reserves for Q1/2019 totalling $5.3 million.
The mark-to-market adjustments reflected in the income statement and revaluation reserve have affected the investment securities balance at March 31, 2020 which totals $420.9 million, a decrease from $445.8 million at December 31, 2019. Total assets at March 31, 2020 were $779.9 million with invested assets remaining the largest component of total assets comprising 76.3% of total assets.
The Board of Directors has approved the Class “A” preference shareholder dividend distribution, which totals $0.6 million in respect of the first quarter of 2020.
“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 CHBL the flexibility it needs to continue to meet its obligations to its policyholders and customers within this challenging economic environment,” said Hilts.
About Colina Holdings Bahamas Limited
Colina Holdings Bahamas Limited (CHBL) is a holding company incorporated in 1993. CHBL subsidiaries provide financial services solutions through the production, distribution, and administration of insurance and investment products. CHBL’s subsidiaries include Colina Insurance Limited (“CIL”), Colina General Insurance Agency & Brokers Limited (“CGIA”), and Colina Financial Advisors Ltd. (“CFAL”).
CIL is The Bahamas’ largest life and health insurer and is rated A- (Excellent) by AM Best Company. CGIA is a general insurance agent and broker. CFAL is an investment advisory firm, established to provide financial services including investment management, pension management and administration, corporate advisory services, escrow, registrar and transfer agent services.
CHBL has more than $790 million in total assets and $184 million in total shareholders’ equity.
Copies of the full financial statements can be obtained online at www.colina.com.