Durrant Pate/Contributor

Guardian Holdings delivered a scintillating combined three-quarter performance, with an unaudited profit attributable to equity shareholders surging to TT$1.28 billion—exceeding the prior year’s results of TT$598 million by 114 per cent.

This increase was mainly attributed to first-quarter gains on the sale of its Dutch-based insurance subsidiary, Thomas Exploitatie B.V., on January 24. Excluding profit from discontinued operations, Guardian recorded unaudited shareholders’ profit of TT$630 million, ahead of the prior year’s results of TT$587 million by TT$43 million or seven per cent. 

Its core insurance operations remain robust, as insurance service results for the current nine-month period outperformed the same period of the prior year by TT$207 million or 34 per cent. For the quarter ended September 30, the Trinidad-based group recorded unaudited profit attributable to equity shareholders of TT$237 million, exceeding the prior year’s corresponding quarter profit of TT$197 million by TT$40 million or 20 per cent. 

A key contributor to the increased profit recorded was continued growth of core insurance operations across the English-speaking, Dutch Caribbean and the Netherlands markets, driven by Guardian’s strategy to “perfect and protect core business”. As the group continues to navigate the ongoing uncertainties in global trade, investment markets and the wider macro environment, management said that focus remains firmly on sustainable, long-term value creation supported by operational efficiencies, disciplined cost management, and favourable market dynamics. 

Key achievements in September quarter

Guardian attained four key successes during the third quarter, reinforced by its growing earnings power. Firstly, the company’s performance ratios are trending strongly upwards with equity/book value per share increasing from TT$18.22 to TT$26.11, earnings per share increasing from TT$2.58 to TT$5.52 and return on equity increasing from 20 per cent to 28 per cent compared to the prior year. 

Secondly, the group successfully prepaid and refinanced its TT$1.02 billion bond by issuing a TT$1.05 billion secured multi-tranche bond (Tranche A – TT$449 million at 5.19 per cent for three years; Tranche B – TT$398 million at 6.49 per cent for six years; and Tranche C – TT$203 million at 7.04 per cent for 10 years) on September 9.

As a result, Guardian’s long-term capital base remains stable. In addition, the company continues to focus on deleveraging, with J$1.99 billion repaid in September 2025, which contributed to our debt-to-equity ratio reducing from 86 per cent to 56 per cent. 

Thirdly, CariCRIS reaffirmed its assigned ratings of CariAA- on the regional rating scale and jmAAA on the Jamaican national scale for Guardian with a stable outlook on October 3. The group remains sufficiently capitalised and compliant with regulatory ratios.

Fourthly, following the inaugural quarterly dividend of 21 cents per share paid on June 11, and the second quarterly dividend of 22 cents paid on September 5, the Guardian board is proposing a third quarterly dividend payment of 23 cents, the third consecutive quarterly increase, which cumulatively surpasses the prior year’s interim dividend payment of TT¢23 by TT¢43 or 187 per cent.

Segment performance

The ‘life, health and pension’ (LHP) segment contributed insurance revenues of TT$2.25 billion, up from TT$2.15 billion in the prior year by TT$96 million or four per cent. Insurance revenue increased on all lines of business except for group health and group life, which were both marginally lower than the prior year by less than one per cent.

For the nine-month-period, the LHP segment generated TT$226 million in new business contractual service margin, compared to the prior year’s new business of TT$263 million.

Compared to the prior year, insurance service expenses declined by six per cent, mainly from the recovery of losses previously recognised on certain loss-making policy groups, partially offset by higher levels of claims incurred and directly attributable expenses. These were partially offset by higher net expenses from reinsurance contracts, driven mainly by higher levels of reinsurance expenses and lower levels of claims recovered. 

Total gross claims paid by the LHP segment for the current nine-month period amounted to TT$2.5 billion compared to TT$2.24 billion in the same period in the prior year. ‘Property and Casualty’ (P&C) also reported higher insurance revenue of TT$2.34 billion, up from TT$2.18 billion in the prior year by TT$157 million or seven per cent, principally from operations in the Trinidad and Tobago, Dutch-Caribbean, and Netherlands markets. All lines of business experienced revenue growth as they continued to build strong momentum. 

Insurance service expenses increased by 10 per cent in the current nine-month period, largely driven by the property line of business, mainly from higher claims incurred and insurance acquisition-related costs. Despite the continued tightening of reinsurance markets, net expenses from reinsurance contracts declined in the current nine-month period by two per cent, mainly from a higher level of claims recovered. Total gross claims paid by the P&C segment for the current nine-month period amounted to TT$693 million compared to TT$494 million for the same period in the prior year. 

Net income from investing activities increased by TT$30 million or two per cent, largely driven by the year-over-year increase in net realised gains of TT$101 million, mostly offset by a decline in net fair value gains of TT$100 million. Guardian also benefited from year-over-year higher investment income, foreign exchange gains, rental income, and other income, partially offset by a higher level of net impairment losses. 

Net insurance finance expenses increased by TT$149 million or 25 per cent over the prior year, mainly from the LHP segment. Among other items, finance expenses include the flow through of the portion of net income from investment activities that are associated with insurance products with an investment component. 

The ‘Asset Management’ segment reported a year-over-year growth in after-tax profit for the period of TT$6 million or 22 per cent, mainly driven by higher net income from investing activities. The group continues to focus efforts on developing this segment through third-party business, increased structuring, and trade activities. Other operating expenses that were not attributable to insurance portfolios increased by TT$60 million or 11 per cent when compared to the prior year. 

This increase was driven partly by an impairment expense on a legacy software system. Excluding this one-off expense, the normalised year-over-year increase is six per cent as management continues to invest in key strategic initiatives and support commercial activities while managing inflationary pressures and capitalising on cost containment opportunities.