Company recorded 70% increase in six months shareholders net profit

Durrant Pate/Contributor

Trinidad and Tobago (T&T)-based insurance giant, Guardian Life has managed to claw back its impairment on financial assets to post a small gain on financial assets of TT$2.1 million for the six months ended June 30, 2022.

This is coming from a loss of TT$58.79 million for the comparable period in 2021. The improvement is due in part to the revival in the global financial market.

The management notes that, “the world has seen a perfect storm of macroeconomic and geopolitical events, which has led to very high levels of volatility across financial markets, and which has also impacted our portfolios”.

During the half-year, Guardian Holdings reported gross premium written of TT$3.81 billion, which is two per cent higher than TT$3.73 billion reported for 2021.

Net written premium increased by five per cent from TT$2.25 billion last year to TT$2.37 billion for the period under review. Gross premium written amounted to TT$1.68 billion for the June quarter, which is one per cent less than TT$1.69 billion reported for 2021.

Net written premium slightly up

During the quarter net written premium rose four per cent from TT$998.63 million last year to TT$1.04 billion.

The highlights that the “performance was driven from our Life, Health and Pensions segment whilst after tax profit from Property and Casualty and the Brokerage operations were relatively flat”.

Net results from insurance activities rose 63 per cent, year over year from TT$417.01 million in 2021 to TT$680.76 million in 2022, while net income from investing activities decreased 26 per cent to TT$570.44 million in 2022 from TT$769.95 million in 2021. 

Guardian Life says the increase was “mainly attributable to favourable reserve movements on account of capitalising on investment and expense management opportunities”.

Fee and commission income from brokerage activities rose six per cent to TT$76.30 million (2021: TT$71.98 million). Consequently, net income from all activities rose five per cent to TT$1.33 billion (2021: TT$1.26 billion).

Operating expenses declined three per cent to TT$742.28 million from TT$768.64 million booked in 2021. The management has advised that, “the Group is closely monitoring expenses as it continues to incur costs associated with the implementation of IFRS 17 (Insurance Contracts) as well as with the group-wide transformation initiatives”.

Finance charges were flat at TT$103.82 million coming from TT$103 million in 2021. Operating profit for the six months amounted to TT$483.48 million relative to an operating profit of TT$328.53 million booked for the comparable period last year.

Profitability improving

Profit before taxation amounted to TT$494.35 million, 46 per cent up from TT$337.54 million in 2021. Following taxes of TT$45.17 million in 2022 (2021: TT$77.25 million), net profit ended the period at TT$449.17 million compared to TT$260.29 million in 2021.

Net profit attributable to shareholders amounted to TT$435.71 million relative to a profit attributable to shareholders of TT$256.14 million reported for the same period in 2021. Total comprehensive income attributable to equity holders of the company amounted to TT$73.08 million (2021: loss of TT$25.44 million) for the six months ended June 30, 2022.

As such, earning per share for the period amounted to TT$1.88 (J$42) relative to an EPS of TT$1.1 (J$24) in 2021. The stock traded at J$542.18 as at August 5, 2022 with a corresponding P/E ratio of 5.84 times.

Total assets amounted to TT$34.90 billion as at June 30, 2022, which is two per cent or TT$593.39 million higher than $34.30 billion booked twelve months earlier. ‘Investment Securities’ contributed the most the increase in assets base by amounting to TT$21.27 billion, TT$134.27 million greater than TT$21.14 billion booked June 30, 2021.

Shareholder’s equity as at June 30, 2022 stood at TT$4.93 billion resulting in book value per share of TT$21.28 (J$476.86).