Caribbean Assurance Brokers gone in the red with losses of $27.3 million for March quarter

Durrant Pate/Contributor

Caribbean Assurance Brokers (CAB) delivered a poor March quarter performance going in the red by chalking up net loss of $27.3 million for the period.

This sub-par performance wipes out the small net profit of $1.7 million posted for the same period in 2025. Lower revenue, higher selling expenses, and higher financing costs associated with CAB’s expansion and strategic initiatives all contributed to the contraction in profitability. 

Total income grew to $138.1 million, up $8.5 million or 6.5% from the $129.6 million recorded a year ago. Revenue fell by $4.7 million, or 4.1%, to $109.5 million, although impairment reversal gains and other operating income boosted overall income performance. 

Big jump in expenses

Operating expenses rose considerably to $160.1 million, up from $126.1 million the previous year, representing a $34.0 million (27%) rise. This rise was mostly due to greater selling and administrative expenses resulting from investments in business expansion, infrastructure enhancements, and digital transformation projects.

As a result of the reduced revenue and noted increases in sales and administrative expenses, CAB’s operating loss for the quarter closed on $22.0 million, up from the $3.5 million loss in the previous year. 

Selling expenses rose to $54.4 million, up from $34.8 million in the previous period. Finance costs increased to $5.3 million from $1.8 million due to increased utilization of financing facilities to support operational growth. 

Overall, the company’s first-quarter performance indicates a transitional time characterized by strategic investments in expansion, technology, and operational improvement. 

While profitability suffered in the short-term, management remains committed to improving long-term revenue creation, operational efficiency, and shareholder value.