Notes To Financial Statements - Jamaica National

Business ReviewNEM Insurance Company (Ja.) LimitedJN Finance LimitedChris HindGeneral ManagerNEM Insurance Company (Ja.) Limited is one ofJamaica’s largest and strongest general insurancecompanies with a book of business that focuseson personal lines and selective small and mediumcommercial risks. Last year, returns to shareholdersimproved three-fold, as increased investment incomeand a much improved underwriting performancein the non-motor area resulted in a strong profitperformance for the financial year, January toDecember 2008.The company was among three of the 11 Jamaicangeneral insurers that succeeded in passing theRegulatory Minimum Asset Test (MAT), and is widelyconsidered to be the strongest in the market in termsof capital adequacy.Management continued to focus on improvingoperational efficiency during 2008 with productivitydoubling in key areas at the company’s core. Severalexciting technology-based initiatives have beenimplemented to enable these gains to gather furtherimpetus in the next year. These initiatives includethe introduction of Electronic Content Management(ECM), which will eventually see NEM establishinga paperless working environment; and, a state-ofthe-artmanagement information tool, which willprovide real-time data to guide business and riskmanagement decisions.The expanded sales network in the Jamaica NationalBuilding Society branches generated a profit in itsfirst full year of operation; and the company hasrecently introduced a special offer for membersof the Society, designed to make motor insurancemore affordable in the current testing economicenvironment. This concentration on enhancing thecustomer experience resulted in major renovationsat the King Street offices, particularly in the customerservice areas, and a redesign of the claims operationsarea, to ensure that settlements are fast and fair attimes of greatest need.Arnie FrancisGeneral ManagerJN Finance Limited (JNFL) provides credit linefinancing such as consumer, auto and premium loans,and other credit facilities including construction,equipment and bridge financing.Despite the challenging economic climate, thecompany posted outstanding financial results. Thecompany’s after-tax profit was $48.9 Million, whichrepresents an increase of 415 percent over$9.5 Million in 2008/2009. Net interest incomeadvanced by 153.3 percent to $84.2 Million from$33.2 Million, as earning assets and marginsimproved significantly.The company’s loan portfolio expanded by$189.3 Million to $567.2 Million, up from$377.9 Million in the previous year. This explosivegrowth was mainly attributed to the continuedimplementation of strategic development programmelaunched last year, in addition to the judiciousmanagement of the company’s finances.The increased visibility enjoyed by JN Finance atJNBS locations across the island, following therebranding of the company, has received positivepublic response. However, while our business hasgrown, many of our corporate objectives are still tobe met. In the 2009/2010 financial year, JNFL willcontinue to pursue its strategic initiatives and buildon the gains achieved last year.JN Finance is committed to its strategic objectives, aswe continue on a consistent growth path and striveto increase our market share.38