IronRock Insurance Company Limited made $40-million profit during its fourth-quarter ending Decmeber 2025, despite heavy claims arising from Hurricane Melissa-related damage.
The general insurer delivered insurance revenue of $571.4 million in the fourth quarter, up 23 per cent year-over-year, and $2.14 billion for the full-year, passing the $2-billion milestone for the first time. The company ended the year with a pre-tax loss of $1.4 million, compared with a $93.3-million profit in 2024.
“The fourth-quarter results were materially influenced by the impact of Hurricane Melissa,” wrote CEO Christian Watt in the management discussion and analysis within the report.
He added that the hurricane resulted in a “significant increase in reported claims during the period, and impacted the profit commissions in our property and engineering segments”. During the fourth quarter, reinsurance contract expenses almost doubled to $276.4 million and rose to $1.30 billion for the year, while insurance service expenses also climbed, compressing the insurance service result by 37 per cent in the fourth quarter and to $90.1 million for 2025.
The company’s catastrophe playbook worked as designed, which resulted in uninterrupted operations.
“Our teams have worked diligently to assess and process claims with urgency and care,” Watt said. “Our reinsurance arrangements provide strong support in managing catastrophe exposures.”
Reinsurance acts as a shock absorber, providing insurance for local general insurance providers. Industry AM Best, the world’s largest credit rating agency that focuses on the insurance industry, noted that “reinsurance partnerships are the cornerstone that provides the capacity for insurers to write property business in the Caribbean”.
Beyond the catastrophe, IronRock’s revenue grew, led by fire, liability and engineering lines, and supported by “disciplined underwriting and sustained demand”. The motor segment, however, remained a drag through the year.
Operating expenses rose as IronRock expanded headcount and infrastructure, moving into a new office and investing in growth. Even so, the balance sheet ended the year robust, with total assets of $4.09 billion and shareholders’ equity of $792.8 million.
Watt acknowledged the strain from Melissa but pointed to system resilience: “We recognise that timely settlement is essential to economic recovery, and we remain eager to settle valid claims efficiently to support the restoration of homes, businesses, and livelihoods across Jamaica.” Watt added.
The outlook remains sound due to “robust reinsurance protection, and a resilient operating framework”.
neville.graham@gleanerjm.com
