On 31 August 2021, LifeStar Insurance plc published its interim financial statements covering the six-month period ended 30 June 2021.
During the period under review, commission and fees receivables declined by 17.6% to €0.9 million from €1.1 million in H1 2020. On the other hand, operating expenses plunged by 42.7% to €2.43 million, largely on the back of the decline in administrative expenses and the ‘balance on the long-term business of insurance technical account before tax’.
Meanwhile, the company suffered a negative net investment return of €0.35 million compared to a loss of €0.37 million during the previous comparable period. Overall, LifeStar Insurance plc registered a net loss of €2.09 million compared to a net loss of €3.02 million recorded in the first half of 2020.
The Statement of Financial Position as at 30 June 2021, when compared to figures as at 31 December 2020, shows that net assets contracted by 4.6% to €28.8 million which, in turn, translates into a net asset value per share of €0.445. Total assets expanded by 7.6% to €174.3 million mainly reflecting increases in the reinsurer’s share of technical provisions (+€4.85 million) as well as trade and other receivables (+€4.95 million). Total liabilities increased by 9.5% to €145.5 million on the back of higher levels of technical provisions (+€9.7 million) as well as the new 4% LifeStar Subordinated Bond which amounts to €2.43 million.
In their commentary, the Directors of LifeStar Insurance explained that the life insurance business saw its gross written premium increase by 5% to €6.6 million in H1 2021. Moreover, the value of In-Force business also grew during these six months by €704,000, meaning that the company has continued to write profitable business.
In contrast, LifeStar Health’s business commission income from normal operations decreased by 6% when compared to the first six months of 2020 due to the contraction in business in certain sectors. Profit commission reduced due to the increased claims being experienced due to the postponement of certain interventions in 2020.
LifeStar Insurance noted that the first six months of 2021 were once again impacted by the pandemic. As such, the company intends to continue to operate in line with the current business and strategic plans with a view of improving its results in the current market conditions.