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Home » 2022 Annual Report

NAGICO INSURANCES
ANNUAL REPORT

2022

Contents

  • Home
  • Chairman's Statement
  • CEO's Statement
  • ABOUT US
  • Financial Highlights
  • Business Analysis
  • Outlook

Equity

USD 56.6M

GWP

>USD 210M

Asset

Nearly USD 440M

CHAIRMAN'S STATEMENT

Financial Markets 2022: A Tapestry of Turbulence and Opportunity

In 2022, the global economy breathed a collective sigh of relief as we recovered from the unprecedented disruptions caused by the Covid-19 pandemic. The world reopened, bringing with it a wave of enthusiasm, but also presenting significant challenges. Markets quickly heated up, inflation became a pressing concern, and supply chain shortages persisted. Central Banks intervened by raising interest rates to rein in global spending.

In the Caribbean, most economies embarked on a path of recovery, with tourism making a strong comeback. However, rising prices impacted everyone, and increased interest rates tightened local spending in many regions.

At NAGICO, we too experienced a year of turbulence, marked by both challenges and opportunities. Our gross premium written for the year reached US$ 212 million, slightly lower than the previous year’s US$ 217 million. This reduction was driven by our strategic decision to decrease our catastrophe exposures amidst rising reinsurance rates. Despite intense competition and pressure to maintain affordability, our overall production remained stable compared to the previous year.

Unfortunately, our Profit and Loss statement took a severe hit as we found ourselves navigating a perfect storm. We closed the year with a loss of US$ (12.6 million) before tax, significantly below our expectations. The increasing costs of catastrophe reinsurance and impact of climate related events resulted in a US$ (4.9 million) Property loss, while our Motor segment suffered a US$ (4.9 million) loss primarily due to higher claims frequency after the pandemic and inflationary pressure on repair costs. We have taken remedial actions and anticipate improved results throughout 2023.

On a positive note, we are pleased with the performance of our medical line of business, which generated a profit of US$ 1.8 million. Additionally, our smaller product lines, such as Liability and Marine, delivered satisfactory operating results. Our Life business, however, recorded a negative result of US$ (3.2 million), largely driven by mark-to-market losses in our investment portfolio. It is important to note that these losses remain unrealized, and we expect them to recover over time.

As Chairman, I believe it is crucial to acknowledge the challenges we faced in balancing risk, capital, and regulatory compliance against the demand to grow the business in a competitive environment. The landscape in which we operate is evolving rapidly, requiring us to remain agile and inclusive.

Furthermore, the ever-increasing expenses have demanded our focused attention. We have commenced work to optimize our cost structure while ensuring the sustainability of our growth initiatives. Innovation and technology are instrumental in enhancing our operational efficiency, enabling us to deliver superior value to our customers. Striking the right balance between cost efficiency and investment in critical areas is imperative for long-term success.

 

Amidst these challenges, we have remained steadfast in our dedication to regulatory compliance. Upholding the highest standards of integrity and transparency has been central to our corporate ethos. Compliance not only safeguards our reputation but also fosters trust among our stakeholders.

 

As we move forward, we are committed to fostering a culture of continuous improvement and adaptability. Our unwavering focus on risk management, prudent capital allocation, and regulatory compliance will remain the bedrock of our strategy. By doing so, we aim to achieve sustained profitable growth, enhance shareholder value, and remain at the forefront of our industry.

 

In closing, we would like to express our heartfelt gratitude to all our customers for their unwavering trust in NAGICO. We also extend our thanks to our intermediaries and business partners for their continued support. Last but certainly not least, we extend a special word of appreciation to our dedicated employees. Your hard work, perseverance, and commitment are truly valued and have been instrumental in our journey thus far.


As we look ahead to 2023 with confidence, we remain committed to delivering value to our shareholders, strengthening our market position, and serving our customers with excellence. Together, we will continue to weave a vibrant tapestry of growth and resilience in the face of turbulence, seizing the opportunities that lie ahead.

Marlon G. Matser

CEO'S STATEMENT

Navigating Challenges, Embracing Opportunities

Reflecting on the year 2022, how will we remember it a decade from now? Will it be seen as the year when the global economy recovered from the impact of COVID-19? Or will it be remembered as the year when inflation soared, and interest rates experienced unprecedented increases? In the insurance industry it will surely be the year in which the global insurance landscape experienced unprecedented changes, which significantly impacted our financial performance.

Our total premium written amounted to US$ 212 million, a decrease from the previous year’s US$ 217 million. This decline can be primarily attributed to our Property Insurance business, which underwent substantial risk reduction measures in high/medium wind-exposed areas.

On the bottom line, we faced challenges and recorded a loss of US$ 12.6 million. This loss resulted from a convergence of several factors, which I will address, focusing on the most significant ones.

One crucial factor was the surge in reinsurance costs, driven by the escalating risks associated with climate change and catastrophic events. To ensure the highest level of coverage for our policyholders and maintain our commitment to risk management, we made difficult decisions to secure necessary reinsurance at elevated prices. While we passed on a significant portion of these increases to our policyholders through rate adjustments, we also retained a considerable portion of these costs, leading to a $4.9 million loss in our Property Insurance segment. Throughout the year, we actively reduced our overall exposure to Windstorm risks, thereby mitigating losses in this line of business. Looking ahead, we anticipate further rises in reinsurance costs in 2023, necessitating passing these increases on to our customers. In return, we will ensure our protection with a first-class reinsurance placement that will enable us to weather even the most severe natural events.

Another challenge we faced was an increase in motor accidents as people resumed regular travel post-pandemic. Rapid inflationary pressures presented an unforeseen challenge as repair costs surged beyond our projections. The rising costs of labor, parts, and materials directly impacted our claims expenses. Furthermore, global supply chain disruptions resulted in extended repair times. Consequently, our Motor line of business ended the year with a loss of US$ 4.9 million.

Despite these difficulties, our medical business performed well in 2023, posting a profit of US$ 1.8 million under tough market conditions. Swift underwriting actions and rate adjustments enabled the portfolio to generate a modest profit, even amid similar inflationary pressures. We were also pleased to see that certain accounts, previously lost to competitors, returned to NAGICO due to our unmatched service levels.

The volatility in global financial markets, fueled by rising interest rates, presented significant challenges for our investment portfolio. Although our investment strategy is designed for sustainable long-term returns, it encountered headwinds during the review period. Our Investment Portfolio recorded a loss of US$ 3.2 million. However, it’s important to note that these mark-to-market losses reflect temporary adjustments and do not accurately reflect the true underlying value of our portfolio. We remain committed to maintaining a well-diversified portfolio and a disciplined approach to risk management. Leveraging our expertise in investment management, we are confident in our ability to navigate uncertainties and deliver robust returns in the future.

Organizationally, we made substantial investments during the year. We restructured our Finance division and invested in Operations and Technology resources. Additionally, we expanded our team with Life Distribution and Technical Underwriting resources. We initiated in-depth analyses of work processes and conducted gap analyses in system requirements. All these investments will contribute to improved process efficiency, automation, and profitable growth in the years ahead.

We anticipate improvements in our Property Insurance segment through continued risk reduction in high/medium wind-exposed territories and rate adjustments. For Motor Insurance, we expect a turnaround in 2023 and 2024, facilitated by the application of sophisticated pricing, analytics, and segmentation strategies. Technology investments will enhance our competitiveness in the Medical Insurance sector. Furthermore, the investments in our Finance Division are expected to yield improved investment results and optimize cash management.

In line with our commitment to innovation and adapting to changing market conditions, we have enhanced some of our Term Life products and introduced new Life riders, including Critical Illness and a Saving rider. Additionally, we have several other product initiatives in progress for 2023, as rising interest rates create new opportunities.

In closing, I would like to extend a special note of gratitude to our dedicated staff, producers, and directors. Without your hard work and unwavering dedication, our company would not have been able to weather the financial storm of 2022. However, our deepest thanks go to our valued customers. Your loyalty and trust are what make NAGICO “Fast, Fair and Always There.” We understand the importance of continually earning your trust year after year, and we will strive to do so for many years to come.

Rudi H. Spaan

CHAIRMAN'S STATEMENT

CHAIRMAN'S STATEMENT

Financial Markets 2022: A Tapestry of Turbulence and Opportunity

In 2022, the global economy breathed a collective sigh of relief as we recovered from the unprecedented disruptions caused by the Covid-19 pandemic. The world reopened, bringing with it a wave of enthusiasm, but also presenting significant challenges. Markets quickly heated up, inflation became a pressing concern, and supply chain shortages persisted. Central Banks intervened by raising interest rates to rein in global spending.

In the Caribbean, most economies embarked on a path of recovery, with tourism making a strong comeback. However, rising prices impacted everyone, and increased interest rates tightened local spending in many regions.

At NAGICO, we too experienced a year of turbulence, marked by both challenges and opportunities. Our gross premium written for the year reached US$ 212 million, slightly lower than the previous year’s US$ 217 million. This reduction was driven by our strategic decision to decrease our catastrophe exposures amidst rising reinsurance rates. Despite intense competition and pressure to maintain affordability, our overall production remained stable compared to the previous year.

Unfortunately, our Profit and Loss statement took a severe hit as we found ourselves navigating a perfect storm. We closed the year with a loss of US$ (12.6 million) before tax, significantly below our expectations. The increasing costs of catastrophe reinsurance and impact of climate related events resulted in a US$ (4.9 million) Property loss, while our Motor segment suffered a US$ (4.9 million) loss primarily due to higher claims frequency after the pandemic and inflationary pressure on repair costs. We have taken remedial actions and anticipate improved results throughout 2023.

On a positive note, we are pleased with the performance of our medical line of business, which generated a profit of US$ 1.8 million. Additionally, our smaller product lines, such as Liability and Marine, delivered satisfactory operating results. Our Life business, however, recorded a negative result of US$ (3.2 million), largely driven by mark-to-market losses in our investment portfolio. It is important to note that these losses remain unrealized, and we expect them to recover over time.

As Chairman, I believe it is crucial to acknowledge the challenges we faced in balancing risk, capital, and regulatory compliance against the demand to grow the business in a competitive environment. The landscape in which we operate is evolving rapidly, requiring us to remain agile and inclusive.

Furthermore, the ever-increasing expenses have demanded our focused attention. We have commenced work to optimize our cost structure while ensuring the sustainability of our growth initiatives. Innovation and technology are instrumental in enhancing our operational efficiency, enabling us to deliver superior value to our customers. Striking the right balance between cost efficiency and investment in critical areas is imperative for long-term success.

 

Amidst these challenges, we have remained steadfast in our dedication to regulatory compliance. Upholding the highest standards of integrity and transparency has been central to our corporate ethos. Compliance not only safeguards our reputation but also fosters trust among our stakeholders.

 

As we move forward, we are committed to fostering a culture of continuous improvement and adaptability. Our unwavering focus on risk management, prudent capital allocation, and regulatory compliance will remain the bedrock of our strategy. By doing so, we aim to achieve sustained profitable growth, enhance shareholder value, and remain at the forefront of our industry.

 

In closing, we would like to express our heartfelt gratitude to all our customers for their unwavering trust in NAGICO. We also extend our thanks to our intermediaries and business partners for their continued support. Last but certainly not least, we extend a special word of appreciation to our dedicated employees. Your hard work, perseverance, and commitment are truly valued and have been instrumental in our journey thus far.


As we look ahead to 2023 with confidence, we remain committed to delivering value to our shareholders, strengthening our market position, and serving our customers with excellence. Together, we will continue to weave a vibrant tapestry of growth and resilience in the face of turbulence, seizing the opportunities that lie ahead.

 

Marlon G. Matser
Chairman – NAGICO Group of Companies​

CEO'S STATEMENT

Navigating Challenges, Embracing Opportunities

Reflecting on the year 2022, how will we remember it a decade from now? Will it be seen as the year when the global economy recovered from the impact of COVID-19? Or will it be remembered as the year when inflation soared, and interest rates experienced unprecedented increases? In the insurance industry it will surely be the year in which the global insurance landscape experienced unprecedented changes, which significantly impacted our financial performance.

Our total premium written amounted to US$ 212 million, a decrease from the previous year’s US$ 217 million. This decline can be primarily attributed to our Property Insurance business, which underwent substantial risk reduction measures in high/medium wind-exposed areas.

On the bottom line, we faced challenges and recorded a loss of US$ 12.6 million. This loss resulted from a convergence of several factors, which I will address, focusing on the most significant ones.

One crucial factor was the surge in reinsurance costs, driven by the escalating risks associated with climate change and catastrophic events. To ensure the highest level of coverage for our policyholders and maintain our commitment to risk management, we made difficult decisions to secure necessary reinsurance at elevated prices. While we passed on a significant portion of these increases to our policyholders through rate adjustments, we also retained a considerable portion of these costs, leading to a $4.9 million loss in our Property Insurance segment. Throughout the year, we actively reduced our overall exposure to Windstorm risks, thereby mitigating losses in this line of business. Looking ahead, we anticipate further rises in reinsurance costs in 2023, necessitating passing these increases on to our customers. In return, we will ensure our protection with a first-class reinsurance placement that will enable us to weather even the most severe natural events.

Another challenge we faced was an increase in motor accidents as people resumed regular travel post-pandemic. Rapid inflationary pressures presented an unforeseen challenge as repair costs surged beyond our projections. The rising costs of labor, parts, and materials directly impacted our claims expenses. Furthermore, global supply chain disruptions resulted in extended repair times. Consequently, our Motor line of business ended the year with a loss of US$ 4.9 million.

Despite these difficulties, our medical business performed well in 2023, posting a profit of US$ 1.8 million under tough market conditions. Swift underwriting actions and rate adjustments enabled the portfolio to generate a modest profit, even amid similar inflationary pressures. We were also pleased to see that certain accounts, previously lost to competitors, returned to NAGICO due to our unmatched service levels.

The volatility in global financial markets, fueled by rising interest rates, presented significant challenges for our investment portfolio. Although our investment strategy is designed for sustainable long-term returns, it encountered headwinds during the review period. Our Investment Portfolio recorded a loss of US$ 3.2 million. However, it’s important to note that these mark-to-market losses reflect temporary adjustments and do not accurately reflect the true underlying value of our portfolio. We remain committed to maintaining a well-diversified portfolio and a disciplined approach to risk management. Leveraging our expertise in investment management, we are confident in our ability to navigate uncertainties and deliver robust returns in the future.

Organizationally, we made substantial investments during the year. We restructured our Finance division and invested in Operations and Technology resources. Additionally, we expanded our team with Life Distribution and Technical Underwriting resources. We initiated in-depth analyses of work processes and conducted gap analyses in system requirements. All these investments will contribute to improved process efficiency, automation, and profitable growth in the years ahead.

We anticipate improvements in our Property Insurance segment through continued risk reduction in high/medium wind-exposed territories and rate adjustments. For Motor Insurance, we expect a turnaround in 2023 and 2024, facilitated by the application of sophisticated pricing, analytics, and segmentation strategies. Technology investments will enhance our competitiveness in the Medical Insurance sector. Furthermore, the investments in our Finance Division are expected to yield improved investment results and optimize cash management.

In line with our commitment to innovation and adapting to changing market conditions, we have enhanced some of our Term Life products and introduced new Life riders, including Critical Illness and a Saving rider. Additionally, we have several other product initiatives in progress for 2023, as rising interest rates create new opportunities.

In closing, I would like to extend a special note of gratitude to our dedicated staff, producers, and directors. Without your hard work and unwavering dedication, our company would not have been able to weather the financial storm of 2022. However, our deepest thanks go to our valued customers. Your loyalty and trust are what make NAGICO “Fast, Fair and Always There.” We understand the importance of continually earning your trust year after year, and we will strive to do so for many years to come.

Rudi H. Spaan
CEO – NAGICO Group of Companies

CEO'S STATEMENT

ABOUT US

NAGICO Insurances is a dynamic and versatile group with 41 years of operating history in the Dutch, French and English-speaking Caribbean. The group has an impressive footprint spanning 21 territories and it provides a combination of property and casualty and life and health insurance risk solutions to its customers. Operating across most of the Caribbean, the group is well regulated and supervised by 17 regulators in the region.

Climate Change. A Hard and Disrupted Market. Service to Our Clients.

Climate change is increasing the frequency and intensity of weather-related events, such as storms, hurricanes, floods, landslides, droughts and wildfires. These events increase the losses and claims for both insurers and reinsurers, making coverage less affordable, while some areas have become uninsurable due to elevated risks. The unfortunate result of the high cost of reinsurance and the reducing available capacity is that the insurance protection gap is increasing.

As the cost of reinsurance increased again in 2022, NAGICO continued to reexamine its portfolio, with a refined risk appetite. Our strategic focus was on the quality of the underlying risk, mix of business, price adequacy and a need to reduce our overall catastrophe exposure, particularly in the property sector of the higher wind-exposed territories. It was another overall challenging year, but with a renewed view of how to attribute value to the allocation of our capacity and the use of business intelligence tools, we were able to achieve our underwriting targets.

Our approach involved a combination of measures, such as reducing our catastrophe risk exposure, diversifying our book of business to include more non-cat related risks, in particular growth of our life and health lines, implementing rigorous underwriting standards, and exploring alternative risk transfer mechanisms.

In addition to the persistent rising cost of reinsurance, high inflation and supply chain disruption also featured in 2022, adversely affecting the cost of living, development, repair and doing business. These issues posed a significant threat of underinsurance and as such we proactively reminded our clients to reassess the adequacy of their sum insured and to consider these factors when doing so. Protection and service to our clients remains of paramount importance to NAGICO.

NAGICO prides itself on always being there for our clients and at the time of a loss, regardless of size, we constantly shine. In September 2022, NAGICO was impacted by Fiona, which affected its policyholders as the storm traversed through Guadeloupe and later passed through the Turks and Caicos Islands as a major hurricane. NAGICO is proud to have settled the majority of these catastrophe claims within 90 days of the occurrence. In addition, the Group also experienced one significant flooding event during November in St. Lucia and two other flooding events were experienced in Trinidad during November and December, with the claims teams delivering on our motto of being fast and fair.

Shifting focus to another of our core lines of business, we noted that the frequency of motor vehicle accident claims remained fairly consistent. However, the motor insurance industry was also faced with several challenges, such as high inflation, supply chain disruption and longer lead times for replacement parts, economic downturn, increasingly litigious populations and claims fraud. These challenges increase the cost of claims and reduce the demand for motor insurance / increase the number of uninsured vehicles. To counter these challenges, NAGICO continued to focus on its customer-centric approach to understanding the needs and preferences of customers, deliver value-added products and services, provide seamless and convenient interactions, building trust and loyalty, and creating positive social impact. Additionally, NAGICO continued to incorporate the use of digital platforms and tools like its online claims notification, online submission of documents and reporting options to streamline claims processing and enhance customer verification. It also leveraged data analytics to detect fraud and inflated claims and strengthened its collaboration with law enforcement agencies, regulators and industry associations to share information, best practices and resources to combat theft and fraud.

Brand Strength

The NAGICO brand is very strong! Through an exceptional understanding of the insurance business, its customers’ needs and the environment within which they operate, as well as its outstanding claim settlement record, NAGICO is recognized as a knowledgeable and trustworthy insurer and a market leader in the region. The group has built a reputation for delivering fast and fair service to its customers and always being there for them.

It proudly attributes its success in this regard, ultimately, to the excellent support of its reliable and friendly staff, qualified and experienced intermediaries, and very strong reinsurance partners.

Diversification and Discipline are key as we position NAGICO’s Life and Health operations for long-term value generation

A volatile inflationary environment coupled with US monetary tightening resulted in a less than favourable financial result for the NAGICO Life operations in 2022. This result was predominantly driven by unrealized capital losses in the long-term bond portfolio; and a one-off increase in policyholder reserves caused by an increase in our per policy expense assumptions. 

Despite the investment headwinds, our investment strategy is designed to deliver sustainable returns over the long term and the temporary mark-to-market adjustments are not indicative of the strength of our underlying portfolio. A well-diversified portfolio, coupled with a disciplined risk management approach, remains a fundamental commitment of NAGICO Life as this approach enables us to mitigate uncertainty while providing the desired returns for our stakeholders and protection to our clients.

NAGICO instituted a comprehensive customer lifecycle framework which has enabled the development of innovative new products to our suite of solutions to meet client needs given shifting market conditions. The insights generated have led to enhancements in our Term Life (Serenity), a new legacy solution (Life Heritage 40), and the introduction of new Life riders relating to Critical Illness, offered also under our medical suite of products, and Retirement Savings. Our supplemental health products continue to help clients close the coverage and provider quality gap that national health insurance programs leave. Our revised approach to the handling of overseas medical care has been well received by our clients who have applauded our efforts in this regard and summarized the high points as reliability, genuine care and courteousness. Other product solution initiatives are in progress for 2023 to address customer needs across our markets that are currently underinsured or uninsured. It is our mission to find more ways to provide the right product to the right customer and at the right time.

We are committed to ongoing expansion of the life and health operations in a deliberate, compliant, and sustainable manner. While challenges will continue in respect to macroeconomic factors and volatile interest rates, NAGICO is well positioned for growth given the strength of its brand, stemming from our commitment, delivery and investment in the region over the years. 

We are very proud of the dedicated team members that deliver exceptional service and results while also seeking innovative solutions for the benefit of all stakeholders. Their commitment to the success of the business is unparalleled as is the unwavering support of our agents, brokers, business partners, and directors. This fact is especially true of the loyalty placed in us by our valued policyholders whose ongoing trust is at the core of our purpose.

 

Capital Risk Management

In recent years, the insurance industry has faced unprecedented challenges. To name a few, geopolitical tension, inflation, volatility, climate change and reinsurer appetite, cyber-risks, changing regulations and standards have tested insurers’ adaptability and resilience. Risk management is what we do at NAGICO and it will always be at the forefront of our decision making.

Our business relies heavily on trust. Thousands of our customers choose to place their trust in NAGICO, firmly believing that NAGICO will be “always there” to fulfil its promise of protecting what is dear to them in difficult times. Maintaining a strong financial position is crucial for us to uphold this promise, which is why capital management is at the core of how we operate and make decisions. In addition to meeting the minimum regulatory solvency requirements in each territory wherein we operate, we regularly conduct stress tests to understand and monitor our risk exposures, ensuring sufficient excess capital is available in the event of the most catastrophic events. Our approach to capital management is closely linked with our risk management strategy.

We establish risk appetite based on NAGICO’s capital base and its ability to withstand events when risks materialise. Therefore, risk appetite is set with reference to the available capital base. Insurance risk, particularly the risk of hurricanes and earthquakes, represents the most significant risk to NAGICO’s capital. Additionally, there are other risks, such as market and credit risks, which are relevant to our operations. To effectively manage capital, we continuously monitor and assess risk exposures and take actions to ensure that risks remain within risk appetite. The design and purchase of our reinsurance program, as well as careful selection of reinsurers, are key risk management measures that safeguard our ongoing viability and solvency, ultimately benefiting our customers in their time of need.

The critical importance of capital and risk management to NAGICO is evident in the way we are governed and managed. Our Boards of Directors and Management dedicate a significant amount of time to comprehending, regularly monitoring, and effectively managing risks and associated capital exposures. After all, “always there” is not merely a slogan – it is one of the principles that drives us.

After recent years of economic slowdowns due to various macro-economic shocks, it was encouraging to see all territories, where NAGICO resides, achieve real GDP growth. Early in 2022, the War in Ukraine retained the headlines and transitioned to the greatest spike in global inflation in over 40 years. At NAGICO we executed our own combative initiative, the “War on Cash”. As inflation increased, so did a corresponding increase in interest rates by Central Banks globally. Our internal indicators forecasted such, and we were able to deploy significant balances in higher yielding assets throughout 2022 resulting in a 30% annual increase in recurrent investment income, further defined as dividends, rent and interest income. The execution of these investments at a favourable time in the economic cycle for interest rates allows the Company to have a sustainable generation of investment cash flows in the near future.

The Caribbean Development Bank’s (CDB), International Monetary Fund (IMF) and the World Bank all forecast regional growth in 2023 based on the continued revival of tourism arrivals and investments in the energy sector. However, we remain cautious in the medium term with slowing but persistent inflation, unresolved global geopolitical tensions, upcoming US presidential elections and subsequent debt ceiling discussions, and tightening global credit conditions all potentially triggering enhanced volatility or a broader economic slowdown. As the saying goes, “when the developed markets sneeze, the Caribbean catches a cold”.

Cyber-related Risk Management

In today’s interconnected digital era, the insurance industry faces a growing threat landscape, with cyberattacks becoming more sophisticated and frequent. The repercussions of these attacks can range from financial loss to reputational damage, affecting both insurers and policyholders. As a responsible and forward-thinking insurance provider, NAGICO understands the importance of robust cybersecurity measures to safeguard our operations, client data, and overall business continuity. We have taken significant steps to proactively manage and mitigate these threats. Through our robust cybersecurity infrastructure, employee training programs, and proactive incident response strategy, we are committed to safeguarding our operations, client data, and overall business continuity. With these measures in place, we continue to prioritize the security of our systems and the trust our clients place in us.

NAGICO has taken a proactive approach to address the increased cyber-related risks. We have invested heavily in cutting-edge technologies and established a comprehensive cybersecurity framework. Over the last year, our perimeter infrastructure has been upgraded to enterprise-class firewalls, and we have deployed best-of-breed intrusion detection systems, and real-time monitoring tools to detect and mitigate potential threats promptly. We have also made significant advances in process and controls, with regular vulnerability assessments to identify and address any potential vulnerabilities within our systems. Our patch deployment automation then ensures that we have very low latency between threat identification and protection.

In addition to technological and process measures, NAGICO recognizes the significance of employee awareness and training in combating cyber risks. We have implemented mandatory cybersecurity training programs for all staff members to enhance their understanding of potential threats, best practices, and the importance of maintaining strong security hygiene. By embedding a culture of cybersecurity, we ensure that our employees are equipped with the knowledge and skills to identify and respond effectively to cyber threats.

Furthermore, NAGICO maintains a proactive incident response strategy to minimize the impact of any potential breaches or cyber incidents. We have established dedicated teams and external partnerships that are well-versed in incident response protocols, enabling us to swiftly and efficiently address any cybersecurity breaches and implement necessary remedial actions. This approach ensures that we can effectively manage cyber-related risks and mitigate potential disruptions to our operations and services.

Fostering Governance and Collaboration

In our pursuit of excellence, NAGICO continues to promote standards of good governance and compliance. We firmly understand that the foundation of our success lies in fostering a culture of mutual respect, collaboration, and trust between our supervisory and management teams. We recognize the importance of clearly defined boundaries, which not only safeguard the integrity of our operations but also promote a healthy balance between oversight and autonomy. We are working on building a corporate culture that thrives on well-defined boundaries, nurtures trust as its cornerstone, and cherishes the invaluable asset of independence. We want these as values and not mere words; they are to be the ethical compass guiding every decision we make. We believe that by upholding these principles, we will not only protect the interests of our stakeholders but also foster an environment where innovation, transparency, and integrity flourish, ultimately propelling NAGICO toward sustainable growth and prosperity.

FINANCIAL INFORMATION

Select from the below menu to view 2022 financial information.
Consolidated statement of financial position as at December 31, 2022

Consolidated statement of profit or loss for the year ended December 31, 2022

Consolidated statement of other comprehensive income for the year ended December 31, 2022

Accounting Standard Changes

Among the challenges that NAGICO had to navigate was IFRS 17: Insurance Contracts, which has an effective date of 1 January 2023. NAGICO’s implementation of the accounting standard commenced in 2021, utilizing a combination of internal resources as well as a consortium of external consultants. The team did good work, building on the foundation of the previous year to get the group to a position where it would be compliant with the standard.

Our ongoing investment both in actuarial and finance capabilities and infrastructure will allow NAGICO to be compliant with IFRS 9 and 17 financial statements as they become required by regulators. In addition, these actions will strengthen our ability to optimize cash management and investment yield improvements.

Embracing a Tradition of Community Care

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Honoring Survivors
Electronic Scoreboard
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Our GM and RBC MD
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As we reflect on the year 2022, we find ourselves revisiting our deep-seated commitment to Corporate Social Responsibility (CSR). NAGICO Insurances has always understood that its success is intrinsically connected to the well-being of the communities it serves. In this dynamic year, despite challenges and changes in the global landscape, NAGICO remained steadfast in its dedication to making a positive impact on the lives of those we touch.

Notable initiatives included supporting Breast Cancer survivors and local education projects, donating an electronic scoreboard to enhance sports facilities, sponsoring the Aruba Athletic Federation’s National Championship, promoting reading and education, and contributing to the Aruba Paralympic Committee. NAGICO’s CSR efforts also extended to fostering a sense of community by organizing a Christmas Toy Drive, spreading joy to children during the holiday season. Additionally, NAGICO remained an active participant in the RBC Race for the Kids, striving to raise awareness and funds for children’s charities while uniting individuals, families, and organizations in support of this noble cause.

It is our promise to continue contributing to these types of initiatives and to strive to making an even greater impact in the years to come, with sustainability projects being incorporated as we remain focused on community care.

 

OUTLOOK FOR 2023

During July 2023, NAGICO announced the appointment of Ms. Kyria Ali as its Chief Executive Officer (CEO). With almost a decade of dedicated service to the NAGICO Group, Ms. Ali has excelled in various roles within the organization, demonstrating exceptional leadership and a passion for driving growth and innovation.

Ms. Ali is the first female CEO in the history of NAGICO Insurances. Her promotion stands as a testament to her competence and the organization’s commitment to diversity, equity, and inclusion. By investing in a talented professional from the region who not only understands but deeply relates to the Caribbean community, the shareholders and board have reinforced their progressive mindset and their recognition of the value that a diverse leadership brings to the group and its stakeholders.

Ms. Ali brings to her new role passion and a wealth of qualifications and experience, ensuring a seamless transition and success for the NAGICO group. With her unique perspective and personal connection to the region, she is committed to leading NAGICO towards continued growth and innovation, while ensuring the group remains firmly rooted in its purpose of protecting the people of the Caribbean.

So, what should you expect from NAGICO in 2023 and beyond? A renewed, re-energized and revitalized operation where the team across our 21 islands is focused on a People-Centric, Purpose-Driven (PCPD) approach to doing business. This approach will lead to increased connectivity and enhanced relationships, growth, sustainability, greater stakeholder confidence and return and longevity for NAGICO.

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