The Trinidad and Tobago-headquartered Guardian Holdings Limited has continued to perform well, despite persistent weak economic conditions in the other territories in which it operates.
This is according to chairman Arthur Lok Jack and chief executive officer Jeffrey Mack, who pointed out that since the onset of the world financial crisis in 2008, gross premiums written, on a continuing operations basis, had delivered a ten per cent compounded annual growth rate and reached TT$4.4 billion (BDS$1.4 billion) in 2012.
In a statement in the group’s 2012 annual report, the two directors pointed out that over 50 per cent of revenue continued to be derived from Trinidad and Tobago while Jamaica and the Dutch Caribbean contributed 24 per cent and 21 per cent, respectively.
Guardian Holdings also operates in Barbados through its subsidiaries Guardian General Insurance Ltd and Guardian Life of the Caribbean Ltd.
For the year ended December 31, 2012, the group achieved TT$353 million (BDS$110.1 million) in after-tax profits. This represented an increase of 35 per cent over the TT$261 million (BDS$81.4 million) realised in 2011 with earnings per share increasing from TT$1.13 (BDS$0.35) to TT$1.52 (BDS$0.47).
“Had the group not adopted the prudent course of making a provision of TT$150 million with respect to possible impairment in value of the Pointe Simon Martinique project, the group’s after-tax profit would have totalled TT$421 million and earnings per share would have been TT$1.82,” the directors said.
They added that the group was able to produce excellent results from insurance activities with profits from this sector growing by 47 per cent from TT$360 to TT$529 million. Lok Jack and Mack noted that excluding the effects of the Pointe Simon impairment provision, net income from investments amounted to TT$922 million, a decline of 13 per cent from TT$1.1 billion in the previous year.
Taking into account the TT$74 million gain from the sale of Guardian’s Lloyds business, the decline was six per cent. The directors said much of this decrease was attributable to the low interest policies that have been applied universally by central banks in their endeavour to stimulate economic growth.
Looking forward, Lok Jack and Mack said the insurance businesses had delivered satisfactory results and the trend was expected to continue.
However, they were less optimistic about the prospects for dramatic improvements in the results of investment activities.
“Returns on interest bearing securities are likely to remain close to historic lows. Other investment classes, including equities and real estate, remain volatile and we continue to approach these with caution.
“However, our investment managers have served us well in the past and we are confident of our ability to provide satisfactory returns to policy owners and shareholders over the medium terms,” the directors said. The group’s balance sheet showed that assets increased from TT$21.5 billion (BDS$6.7 billion) in 2011 to TT$22.5 billion (BDS$7 billion) in 2012. (NB)