October 5, 2017
Key Insurance Company Limited which was listed on the Junior Market of the Jamaica Stock Exchange in 2016, recently announced changes to its management team. Against a background of challenges within the insurance industry, characterized by a soft market and reduced profit margins, these developments emanate from a strategic review of the Company’s performance and a new and deliberate direction to be executed on a phased basis, as announced at the Annual General Meeting in June this year.
With an agenda of enhanced efficiency and growth set as a priority, the Company took the decision to amend the management structure which served well up to the time of listing and into the Company’s first year as a public company.
In keeping with the move, Natalia Gobin-Gunter, Executive Board Chairman and Executive Director, Kala Abrahams, long-serving Senior Managers, have agreed to relinquish their operational positions as Deputy Managing Director and Purchasing/Web Operations Manager respectively, effective 30th September 2017. Their portfolio assignments have been reallocated within the organisation
Natalia and Kala who individually offered over twenty years of dedicated service to the success of the Company, will continue to serve as Non- Executive Directors. Natalia remains Chairman of the Board.
Based on the Company’s assessment, this first step is expected to result in an improved management structure and coupled with other developments to come, increased profitability and efficiency levels, notwithstanding the “one-time” redundancy costs. In 2018, the full effect of the change is expected to be seen, as projected growth in revenue will outpace expenses.
The internal financial statements for the 8 months to August 2017, were approved by the Board of Directors. Net premiums earned were 40 percent ahead of the similar period in the previous year and 5 percent ahead of budget. As at 31st August 2017, the Minimum Capital Test (MCT) stands at 319 percent which is above the capital adequacy metrics prescribed by the Financial Services Commission (FSC).
Additionally, at 31st August 2017, Key Insurance Company Limited saw Shareholders’ Equity rising to $1.07 billion from $994.5 million at the end of the 2016.
Commenting on the changes, Chairman, Natalia Gobin-Gunter, said, “ I endorse the move, which underscores our commitment to strengthen Key’s financials and allows the Company to enjoy a sustained level of profitability and fiscal strength going forward.”
In the upcoming months and at the Annual General Meeting for the 2017 financial year, further plans and updates will be shared, as the Company continues to deliver credible and transparent leadership, to the benefit of its shareholders and stakeholders, as well as the Company’s value promise to its clients to continue being the “People’s Insurer”, by providing them with customised policy options and stellar service.