Shareholders’ profit rises to TT$598 million exceeding 2023’s restated results of TT$464 million 

Durrant Pate/ Contributor

Guardian Life is reporting a bumper combined three-quarter performance with shareholder profit for the period ended September 30, 2024 rising to TT$598 million, exceeding the prior year’s restated results of $464 million by $134 million or 29%.

This exceptional performance was mainly driven by improved net insurance service results, higher net investment income, higher insurance brokerage fees and commission income and lower operating expenses partially offset by higher net insurance finance expenses, and higher finance charges. The positive momentum continued in 2024, delivering another quarter of robust results despite third-quarter profits being impacted by additional incurred claims from Hurricane Beryl in early July. 

Third quarter profits of TT $197 million surpassed second quarter performance by TT$30 million or 18% mainly due to higher net income from investing activities and lower net insurance finance expenses offset by lower insurance service results, higher operating expenses and higher taxation. Third-quarter profits also outperformed the prior year’s quarterly profits of TT$85 million by TT$112 million or by 132% mainly due to higher net income from investing activities and higher insurance service results partially offset by higher net insurance finance expenses. 

Balance sheet remains strong

The balance sheet metrics remain strong and the group continues to create value for shareholders in the current operating environment. Guardian remains sufficiently capitalized and compliant with regulatory ratios, whereby on September 20, 2024, CariCRIS reaffirmed a CariAA and a jmAAA rating on the Jamaican national scale with a stable outlook. 

When compared to the prior year’s nine-month results, the Group’s equity/book value per share increased from TT$15.70 to TT$18.58, return on equity increased from 19% to 20%, earnings per share increased from TT$2.00 to TT$2.58 and interim dividends paid increased from TT$0.22 to TT$0.23. 

Insurance revenue grew by TT$363 million or 9% over the prior year mainly from continued growth in core business across the Group’s diversified product offerings in the English-speaking and Dutch Caribbean markets. The Life, Health and Pension (LHP) segment contributed insurance revenue of TT$2.2 billion, up from TT$2 billion in the prior year by TT$183 million or 9%. 

Insurance revenue increased on all lines except Group Health, as clients continued to service their policies coupled with new business growth across all territories. This year-over-year increase in revenue was partially offset by increased insurance service expenses impacted by a higher level of health claims and directly attributable expenses. 

Marginal increase in claims benefit

Total gross claims paid by the LHP Segment for the current period amounted to TT$2.2 billion compared to TT$1.8 billion in the prior year. Property and Casualty (P&C) also reported higher insurance revenue of TT$2.2 billion, up from TT$2 billion in the prior year by TT$180 million or 9%, principally from operations in the Trinidad, Jamaica and Dutch Caribbean markets. 

Both the property and motor lines of business experienced revenue growth as they continued to build strong momentum. The year-over-year growth in revenue was largely offset by higher insurance service expenses from higher incurred claim expenses. 

Total gross claims paid by the P&C Segment for the current period amounted to TT$494 million compared to TT$325 million in the prior year. The P&C segment continues to closely manage the general tightening of reinsurance markets. 

During the period under review, reinsurance expenses declined, benefitting from a higher level of incurred claims recovery. Net income from investing activities increased by TT$51 million mainly from higher investment income and higher realized gains partially offset by lower net fair value gains and impairment losses. 

Guardian continues to closely monitor volatile markets and rebalance portfolios as necessary. The Group remains resolute on optimizing performance whilst building out the phases of its strategic journey geared toward further technological enhancements, exploring new markets, strengthening its product portfolio, and improving service delivery.