The majority GraceKennedy-owned, Key Insurance Company made a profit of $24 million for the third quarter of 2024, or 11 per cent less profit year-on-year.
Its revenue however rose during the period signifying continued growth in the market.
“Key Insurance remains well-positioned to meet market challenges, thanks to ongoing assessments of our portfolios and a focus on operational efficiency and profitability,” the company stated in its financials. Looking ahead, Key Insurance is optimistic about its long-term growth strategy.
Revenue for the September quarter reached $814 million, marking an 18 per cent increase year-over-year. Over nine months, Key Insurance reported total revenue of $2.3 billion, up from $2 billion a year earlier.
This growth was driven by sustained gains in the motor insurance segment, which accounted for 65 per cent of the company’s total insurance revenue. Key Insurance also saw a 24 per cent increase in pre-tax profit for the nine months ending September 2024, climbing from $60.5 million to $75.1 million compared to the same period in 2023.
However, rising insurance service costs and claims expenses due to increased motor vehicle accidents created challenges for the company. Insurance service expenses rose by 20 per cent for the quarter, and claims expenses increased by $177 million, or 22 per cent, over the nine-month period, reflecting both the frequency and severity of accidents.
Despite these challenges, Key’s investment portfolio remained strong, generating a 24 per cent increase in income over the prior year’s nine-month period. The company credited its ability to capitalize on higher interest rates while staying responsive to market changes.
Its capital stands at $1.4 billion up from $1.3 billion a year earlier.
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.