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Inversiones La Construcción's Q3 profit grows 98.3% YOY on insurance growth

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Inversiones La Construcción's Q3 profit grows 98.3% YOY on insurance growth

Chile-based Inversiones La Construcción SA reported a consolidated net profit of about $54.7 million for the third quarter, up 98.3% from $27.6 million in the year-ago period as the company's insurance business booked a substantial increase in profits.

In the period, insurance activity profit ticked 632.7% higher to $43.4 million, driven by a 710.6% rise in operating results. The boost in profits from insurance activity offset a 59.9% annual decline in non-insurance activity profit, which totaled $7.1 million in the third quarter, dropping from $17.7 million a year earlier

Even so, the company's net premium income for insurance activity fell 29.1% year over year to reach $189.5 million in the third quarter.

Inversiones La Construcción recorded $4.2 million in banking activity profit, up from about $4.0 million a year earlier. This was largely due to a 96.5% decrease in provisions for loan losses, which reached $98,000. Meanwhile, the bank's other operating income rose 33.4% to $8.7 million.

The parent company's annualized return on equity stood at 18.5% as of September, 580 basis points higher than what was recorded at the end of the same month a year ago.