Premium income for the Hand-in-Hand group rose by 1% from $485M in 2000/2001 to $490M for the financial year ending June 30, 2002, according to its annual report.
Surplus of revenue over- expenditure for the group was $29.1M compared to $57.6M for the previous year.
In his review of the report and accounts for the year at the company's Annual General Meeting on November 28, Chairman Clarence Hughes said the year was as extremely difficult as the previous year. "The recent surge of criminal activity has been added to the economic and social instability which continues to impact negatively on the demand for insurance", he said.
During the year, 915 new fire policies were issued with a total sum insured of $9.8B yielding $62.7M in premiums. The number of fire policies in force at June 30, 2002 was 12, 154 yielding $279M in annual premiums compared to 12, 732 in the preceding year yielding $269.
During the year under review, 2,161 motor policies were issued insuring 2,360 vehicles with annualised premiums of $50.2M. In the preceding year, 2,789 policies were issued insuring 2,954 vehicles providing annualised premiums of $52.3M.
While premiums rose slightly from $485M to $490M, investment income declined from $41.1M to $33.6M.
For 2000/2001 the gain on disposal of investments was $145.9M while for the year under review the figure was $9M. The year 2001/2002 also saw a $20M gain on exchange while there was none in the in the preceding year.
In terms of expenditure, management expenses for the group slid from $355.9M to $336.3M while claims fell from $192.6M to $149.8M. Taxation also declined from $28.5M to $7.3M.
A triennial cash profit of 40% was paid for the period ended June 30, 2002. This will result in a cash payout of $20.8M compared to the 50%, $28.2M payout in the preceding year.
During the year ended June 30, 1999, the company acquired 66.7% of the issued share capital of the Guyana Cooperative Insurance Services at $215M and in the financial year ended June 30, 2002, Hand-in-Hand made a successful bid for 90% of the equity of GNCB Trust Corporation. A 10% deposit amounting to $44.5M was paid.