Durrant Pate/Contributor

Regional insurance giant Guardian Holdings Limited delivered an exceptional performance in its just-released 2024 full-year audited financial results.

Guardian Holdings, which operates in several Caribbean territories and is majority-owned by the NCB Financial Group, manifested its strong earning power, solid track record and diversified business model, which were instrumental in achieving exceptional financial results for 2024. 

Against the backdrop of a challenging external environment—notably marked by continued economic, geopolitical and climate uncertainties—shareholders’ profit for the year ended December 31, 2024, climbed 32 two per cent to TT$850 million, exceeding the prior year’s restated results of TT$645 million. 

In terms of normalised core business growth, Guardian achieved a year-over-year growth in profit before taxation of TT$415 million or 61 per cent after excluding the prior year’s non-recurring net fair value gain of TT$174 million. In 2024, the group generated TT$377 million in its new business contractual service margins, a 19 per cent growth over 2023 that underscored continued momentum. 

Balance sheet strong; group remains well capitalised 

Guardian Holdings’ balance sheet metrics remain strong with the group continuing to create value for shareholders in the current operating environment. The Trinidad-headquartered group remains sufficiently capitalised and compliant with regulatory ratios. 

When compared to the prior year’s restated results, the group’s equity/book value per share increased from TT$16.23 to TT$19.71, while earnings per share increased from TT$2.78 to TT$3.66, return on equity inched up from 19 per cent to 20 per cent and dividends paid rose from TT$0.75 to TT$0.80. Insurance revenues closed the year on TT$5.878 billion, surpassing 2023’s revenues of TT$5.438 billion by TT$440 million or eight per cent. 

This was mainly driven by increased revenues from our core operations in the English- and Dutch-speaking Caribbean markets. The life, health and pension (LHP) segment demonstrated robust growth contributing insurance revenues of TT$2.935 billion, up from TT$2.695 billion in the prior year by TT$240 million or nine per cent. 

Performance of LHP segment

Insurance revenue increased on all lines, as clients continued to service their policies coupled with new business growth across all territories. The LHP segment’s results also benefitted from lower insurance service expenses in the current year, mainly from lower claims and directly attributable expenses and reduced losses on onerous contracts. 

This was partially offset by increased net expenses from reinsurance contracts held in the current year, driven mainly by a reduction in incurred claims recovery, largely from the traditional life business line. Total gross claims paid by the LHP segment for the current period amounted to $3.3 billion compared to $3.2 billion in the prior year. 

The ‘Property and Casualty’ (P&C) segment also grew, contributing insurance revenues of TT$2.943 billion, which surpassed the prior year by TT$200 million or seven per cent, principally from operations in Trinidad, Jamaica and Dutch-Caribbean markets. 

Higher insurance service expenses 

All business lines except marine experienced revenue growth, with the property line being the highest contributor. The year-over-year growth in revenue was partially offset by higher insurance service expenses, mainly driven by higher incurred claims and other directly attributable expenses. 

This included additional incurred claims paid in the third quarter for Hurricane Beryl. Net expenses from reinsurance contracts held also increased in the current year from the continued tightening of reinsurance markets, resulting in a higher level of reinsurance expenses primarily in the property book of business. 

Total gross claims paid by the P&C Segment for the current year amounted to $646 million compared to $660 million in the prior year. 

Net income from investing activities increased by TT$83 million or four per cent, mainly from higher investment income, higher realised gains and higher other income, partially offset by lower net fair value gains and current year impairment losses. 

Asset Management segment performance

The ‘Asset Management’ segment reported a year-over-year decline in after-tax profit for the period of TT$4 million from lower net income from investing activities and higher finance charges. The group continues to focus efforts on developing this segment through third-party business, increased structuring, and trade activities. 

Guardian Holdings says it remains, ”laser-focused on costs and seek further operational efficiencies going forward. Despite inflationary pressures on our operating cost structures and increased expenditure to support our commercial activities, the group managed to contain current year expenses to a two per cent or TT$18 million increase over the prior year by active management of controllable expenses.”

Dividend declared

The board has proposed a final dividend of TT57 cents per share, which, in addition to the interim dividend of 23 cents per share, will bring total dividends for the 2024 financial year to 80 cents per share, an increase from 75 cents per share for the 2023 financial year. This dividend will be paid to shareholders on record as at May 7.

The dividend of 80 Trinbagonian cents per share represents a payout ratio of 22 per cent on the earnings per share of TT$3.66 and we are focused on increasing both, earnings per share and the payout ratio.