CBL Corporation has exceeded all its IPO profit forecasts by significant margins in its first full year result as a listed company, CBL has announced today.
The result was a record performance in its four decade history.
Operating profit for the 12 months ending 31 December 2015 was $59.9 million, which was up 41.9% on the prospective financial information (PFI) of $42.2 million, and earned on Gross Premiums (of insurers and MGA) of $294.2 million in line with PFI of $296.1 million.
Net profit after tax of $35.5 million was up 36.0% on PFI. This was even when allowing for foreign exchange translations (tax adjusted) net profit was $32.7 million, up 24.0% on PFI.
CBL managing director Peter Harris said this was a very satisfying performance.
“I believe the numbers speak for themselves,” he said. “But it does highlight the potential of the company which we believe will be augmented by being listed on both the NZX and the ASX.
“We are proud to be a listed company and relish the challenge going forward of delivering outstanding performances and returns for all shareholders whilst at the same time maintaining excellent service to business partners and clients.”
Harris said the 2015 financial year had been an eventful one for the company, with its listing on 13 October 2015, three strategic acquisitions in Assetinsure in Australia, PFP in the UK and a 34.99% investment into Mexican company Fiducia.
He also pointed to the company’s ratings upgrade from AM Best from B+ (Positive) to BB+ (Stable).
Harris said CBL would continue to deploy the $90 million raised through the IPO.
“While we continue to drive organic growth, we will also consider opportunities to acquire businesses that will further enhance or support existing businesses or provide the Group with access to markets,” he said.
“The company’s growth strategy is very much built around a philosophy working alongside established business partners – by supporting them to achieve their goals we will in turn continue to profit through both top and bottom line growth.
“As we sit here today we see opportunities in France, Scandinavia, Mexico and South East Asia.”
Harris also noted that all key insurance metrics had exceeded expectation.
CBL saw strong year on year growth in GWP, the company’s net loss ratio across its three insurance entities was 35%, a 2.4% favourable variance to PFI and down from 40% in 2014.
It also enjoyed strong solvency margins that were at the upper end of targets with CBL Insurance 155.2%, Assetinsure 278% and CBL Insurance Europe 1,205%.
CBL chairman Sir John Wells commented on the ‘excellent’ result: “Given the high intensity and time commitment during the IPO process the company did not take its eye off the ball.
“CBL not only went into the IPO with very good numbers it came out the other end with a performance that exceeded its own projections.
“Clearly this was a team effort by the whole group and clients. I congratulate them all.”