Gross premium written increased by 3% to TT$2.04 billion

Trinidad insurance giant, Guardian Holdings Limited (GHL), which has just relisted on the Jamaica Stock Exchange, is out of the red, posting profits attributable to shareholders of TT$176.79 million for the March quarter.

This is coming from a loss of TT$34.75 million for the same period in 2020. Operating profit for the quarter amounted to TT$212.34 million relative to an operating loss of TT$85.87 million booked for the comparable period last year.

Share of after tax profits of associated companies amounted to TT$3.57 million, down from the 2020 posting of TT$4.79 million. Profit before taxation amounted to TT$215.91 million relative to a loss of TT$81.08 million in 2020.

Following taxes of TT$38.64 million in 2021 and a taxation credit of TT$40.18 million in 2020, net profit after tax totalled TT$177.27 million for the March quarter compared to a net loss of TT$40.90 million reported last year.

Surplus attributable to participating policyholders was TT$482,000 relative to a deficit of TT$6.15 million in 2020. Therefore, profit for the period amounted to TT$176.79 million relative to a net loss of TT$34.75 million in 2020.

Slight increase in gross written premium

GHL is reporting a slight increase in gross premium written of TT$2.04 billion, higher than the TT$1.98 billion reported for 2020. As a result, net written premium increased by one per cent from TT$1.24 billion last year to TT$1.25 billion for the three months ended March 31, 2021. 

GHL explains that, “the Life, Health and Pension business segment recorded a two per cent growth in gross premiums primarily from the Trinidad and Jamaican markets. The integration of the life insurance and annuities portfolio acquired by Guardian Life Limited at the end of Q3 2020 from NCB Insurance Company Limited, has contributed to the increase in this segment’s results for the quarter”.

The Property and Casualty business segment also recorded a growth in gross premiums by four per cent primarily from our operations in the Netherlands. Net results from insurance activities rose 15 per cent, year over year, from TT$180.75 million in 2020 to TT$208.04 million in 2021, while net income from investing activities increased to TT$332.40 million in 2021 from TT$26.75 million in 2020. 

According to GHL, “this increase was primarily on account of the net fair value gains which recorded a favourable movement of $354 million, from a loss of $329 million in the prior period to a gain of $25 million in this period, driven by positive movement in the Group’s regional equity portfolios”.

Fee and commission income from brokerage activities fell eight per cent to TT$36.71 million coming from TT$39.78 million, a year before. Net income from all activities rose 133 per cent to TT$577.16 million (2020: TT$247.27 million).

GHL registers impairment losses on financial assets

Net impairment losses on financial assets was TT$5.02 million in 2021 relative to a gain of TT$12.70 million in 2020. Operating expenses was relatively unchanged at TT$309.07 million relative to TT$309.12 million in 2020.

The T&T insurance giant also booked finance charges of TT$50.72 million for the quarter under review, which was an increase over the TT$36.72 million booked in 2020. GHL’s management is reporting that, “the Group is closely monitoring expenses at as it continues to incur costs associated with the implementation of IFRS 17 (Insurance Contracts) as well as with our Group wide transformation initiatives”.

Earnings per share for the period amounted to J$16.51 (TT$0.76) relative to a Loss Per Share of J$3.01 (TT$0.15) in 2020. Total assets amounted to TT$33.71 billion as at March 31, 2021.

Investment securities and cash and cash equivalent contributed the most the assets base amounting to TT$20.80 billion and TT$3.35 billion, respectively. Shareholder’s equity as at March 31, 2021 stood at TT$4.64 billion, resulting in book value per share of J$433.42 (TT$20.00).