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Chairman’s Statement
The anticipated hardening of the 2018 reinsurance market cycle, as a result of the significant losses from the 2017 Atlantic hurricane season, failed to materialize. The continued availability of worldwide reinsurance capacity resulted in minimal increases in property catastrophe prices at renewal. There was, however, some significant upward movement in original property pricing, which was limited to the Caribbean region, especially on islands that were devastated by the 2017 events.
During 2018, RoyalStar Assurance Ltd. (RSA) increased its property aggregates in various islands where the pricing margins were favorable compared to 2017. Remaining disciplined in its underwriting approach, RSA accepted business from new opportunities in the British Virgin Islands (BVI), which contributed to the overall profitability of the Group.
Our joint venture partnership between RoyalStar Holdings Ltd. (RSHL), Sunshine Holdings Ltd. (SHL) and Ascendancy Holdings Limited (AHL) continues to perform above expectation and is now a stable source of investment income for the Group. During 2019, the Group is seeking to explore new investment opportunities in the region.
I am pleased to advise on behalf of the Board of Directors that the net profits for the RoyalStar Group of Companies for the fiscal year ended 31 December 2018 was $5,230,100 which was a 13.51% increase over the net profit of $4,607,400 as at 31 December 2017. We can also report
that the Net Written Premium (NWP) for 2018 grew by $654,000 compared to 2017. Based on these results and the commitment of management and staff, RSA continued to maintain its A.M. Best rating of ‘A’ Excellent.
The fundamental business strategy of the Group is very strong; however, we must continue to be “Responsive”, ensuring that we are flexible in our service and products, which must be aligned with the changing social and economic patterns of our customers.
The Board of Directors wishes to thank Richard Espinet, Director and Peter Muscroft, Vice President, Technical Operations for their years of service and dedication to the RSHL Group. We wish them a happy and healthy retirement.
The Board would also like to express its appreciation to our valuable policyholders, reinsurers, agents and shareholders for the continued trust and support they have placed in the RoyalStar Group of Companies.
Sir Franklyn R. Wilson, KCMG Chairman
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