Understanding Life Security Company grows five times a profit

Canopy Insurance Limited, a joint venture between Gracekenedy Group and Musson Jamaica Limited, recorded a five -time profit increase in 2024, driven by higher revenues.

“The growth of Canopy’s revenue in 2024 was driven by new customers’ acquisition and diversification of our revenue flows,” Oliver Tomlinson, CEO of Canopy, said in the comments. Financial gleaner.

Revenue grew by 25 percent to $ 3.9 billion, which exceeded 20 percent in the basic costs, which amounted to $ 3.7 billion. This broad margin contributed to the net profit to $ 217 million from 39 million dollars in 2023, the first profitable year for the umbrella.

Before that, the Life and Health Insurance Company recorded losses of $ 188 million in 2022, $ 168 million in 2021, $ 65 million in 2020, and $ 197 million in 2019. The company was established in 2018.

Canopy plans to continue strengthening its financial position by eliminating its deficit, which primarily reflects the construction costs of the seven -year -old company.

“We aim to cancel the accumulated deficit in Canopy by the end of the fiscal year for 2025. Our shareholders have made significant investments at work, and we intend to start seeing revenues on these investments by 2026,” Tomlinson said.

Last year, Canopy’s profit growth erased a third of the deficit, which pushed it to $ 364.6 million, compared to $ 581.5 million in 2023.

The former CEO of the Gracekennedy Don Wehby, who retired in February, noticed that Canopy’s growth was driven by the “reliable value” that he provides to consumers, allowing it to expand its share in the market. He attributed his performance to three main factors: synergy of size, diversification of products, and the implementation of basic royal programs.

Over the years, fixed revenue growth enabled the two numbers of the company to achieve profitability.

It initially focused on providing health insurance and collective life insurance for Gracekennedy and Musson, and Canopy has since expanded its offers to external customers. The formation of its products now includes a very important disease, a personal accident, and cover the family plan.

Over the past year, its capitalist base has grown to $ 945.4 million, up from $ 508.5 million, driven by four profit higher and badly of $ 220 million in stock offer revenues. Last April, the company issued 220 million ordinary shares equally between both partners, which increased its total normal shares to 1.31 billion units.

The latest data from the Financial Services Committee, which regulates the insurance sector, places Canopy capital by about one percent of the capital of $ 116 billion through the life insurance industry. Large insurance companies Sagor Al -Hayat Jamaica and the trustee life control the largest part of the market.

Tomlinson’s expectations for the sector are positive.

“As long as the risks of life, health and property exist, the insurance will remain necessary.” “However, the sector must constantly create to provide affordable and useful products that reduce losses and create wealth to our customers,” he said.

As part of its risk management strategy, shading with international companies Munich Re and Swiss Ri. In 2024, the company ended the reaction -reinforcement category with Knutsford Re, a Gracekennedy company, according to the audit report.

Tomlinson explained that the change was paid with new accounting rules for insurance contracts – under international standards for financial reports.

“The arrangement has ended due to the adoption of international standards for the preparation of financial reports 17, which prompted our organizers to no longer learn about the relevant reinsurance arrangements. Thus, we stopped the attachment with Gracekennedy and moved to new arrangements to meet our organizational proportions,” he said.

Steven.jackson@gleanerjm.com