FIJICARE Insurance Limited Group, listed as FIL on the South Pacific Stock Exchange in Suva, has announced an audited net income after income tax of $1.35million for its financial year ended December 31, 2023.

The amount is significantly lower than its 2022 results, which had seen the group posting an after tax profit of $5.93m.

“The reduced profit is a result of record claims paid out in 2023 of $35.9m (2022: $33.8m),” FIL stated.

“As anticipated, medical and motor vehicle claims were at all-time highs. This has been the trend globally due to post-covid effects for increased medical treatments and inflationary pressure on motor vehicle parts and general cost of repairs.

“As per the actuarial variations, the ‘incurred but not reported’ (IBNR) provision has also increased due to the substantial growth in the comprehensive motor vehicle business and thus resulting in decreased profits in 2023.”

Gross written premiums for the group increased to $53.4m from $50.5m, driven by growth in medical insurance, comprehensive motor insurance and comprehensive travel insurance.

“FijiCare has become a prominent player in the comprehensive motor vehicle product category. It is also the only local insurer offering comprehensive travel insurance in the local market,” FIL said.

The group’s VanCare subsidiary in Vanuatu also witnessed growth in gross written premiums in comprehensive and compulsory third-party motor insurance.

“The FijiCare Group remains positive about its performance in 2024 and beyond with the anticipated stabilisation of claims from very high levels in 2022 and 2023,” the release added.

“The Group remains in a solid position with a strong balance sheet and net assets of $26.7m as at December 31, 2023.

“The VanCare business is also expected to deliver a steady performance with enhanced profitability in 2024.”

FIL shares were trading at $17.35 a share on SPX when this edition went to press.