Nassau, The Bahamas, December 3, 2020 – Colina Holdings Bahamas Limited (“CHBL” or “the Company”) today released its unaudited consolidated interim financial results for the nine months ended September 30, 2020.

The Company recorded net income attributable to ordinary shareholders of $8.6 million or $0.35 per ordinary share. This compares to net income attributable to ordinary shareholders of $8.9 million and $0.36 per ordinary share for the same period in 2019.

Comprehensive income attributable to equity shareholders for the nine months ended September 30, 2020 totalled $2.7 million compared to $11.5 million for the same period in the prior year – reflecting the significant impact that the mark-to-market price adjustments on its investment securities continues to have on the Company’s comprehensive income results.

These mark-to-market revaluation losses were reflected in net investment income which totals $8.6 million compared to $32.9 million in the prior year. Additional fair value losses were recognized through the revaluation reserve on investment securities classified as available for sale totalling $7.7 million. The Company ensures that, as part of its long-term strategy, it maintains a strong capital base to withstand these interim periods of price volatility.

“Local commercial activity has been stifled during 2020, due to the impact of the COVID-19 pandemic on the Bahamian economy,” said Terence Hilts, Chairman of CHBL.

“The Company continues to have the strong balance sheet to weather income statement volatility, particularly during these times of economic change and uncertainty,” said Hilts.

The mark-to-market revaluation adjustments affecting net investment income is the primary driver for the reduction in total revenues which totalled $108.3 million for the 9 months ended September 30, 2020 compared to $138.7 million in the prior year. Gross premium revenues through September 30, 2020 were down $4.3 million as new business and renewal premiums were challenged by the effects of the ongoing pandemic. Net premium revenues through September 30, 2020 totalled $83.5 million compared to $88.7 million for the same period in 2019.

The decrease in revenues was offset slightly by a reduction in claims experience with net policyholder benefits totalling $60.6 million for the 9 months ended September 30, 2020 compared to $67.6 million in the prior year. Additionally, offsetting the impact of the negative investment returns is a reduction of provisions for future policyholder benefits totalling $3.1 million compared to an increase in actuarial reserves in the prior year totalling $20.1 million.

The mark-to-market adjustments reflected in the income statement and revaluation reserve have affected the investment securities balance at September 30, 2020 which totals $439.3 million, a decrease from $445.8 million at December 31, 2019. Total assets at September 30, 2020 were $788.6 million with invested assets remaining the largest component of total assets comprising 78.8% of total assets.

Through September 30, 2020, the Company has declared $5.4 million in dividends for its Class “A” ordinary shareholders. The September 30, 2020 accounts also reflect $1.8 million in preference share dividends for its Class “A” Preference shareholders in respect of dividends through the period then ended.

“Prior to any consideration of dividend distributions, we carefully assess the Company’s capital position,” said Hilts. “We remain focused on ensuring that the Company’s capital base remains sufficiently strong to meet future obligations to its policyholders and shareholders.”

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 $780 million in total assets and $200 million in total shareholders’ equity.

Copies of the full financial statements can be obtained online at www.colina.com.