By Durrant Pate/Contributor

Guardian Holdings Limited’s (GHL) group strategies remain resilient and flexible as the Trinidad and Tobago (T&T)-based regional insurance provider continues to navigate current market conditions.

GHL says its operating environment “continues to display elevated levels of inflation and tighter financial conditions, partially due to myriad of factors that contribute to extend economic certainty and volatility of global financial markets”.  

Despite these conditions, GHL, which has operations in Jamaica, is weathering the harsh economic climate and has been able to navigate through it while being able to identify and pursue opportunities while supporting customers and staff in an evolving environment.

Against this backdrop, GHL is reporting an exceptional  first quarter ended March 31, 2024, which keeps it on the path to excellence and growth. During the period, the insurance conglomerate experienced a 9 per cent increase in net results from insurance activities totalling TT$181.88 million compared to TT$166.16 million in 2023.

Financial highlights

Net income from investing activities amounted to TT$533.31 million (2023: TT$494.51 million), representing an 8 per cent increase year over year. Consequently, net insurance finance expenses were TT$213.55 million compared to TT$152.77 million for the first quarter ended March 31, 2023.

Net income from all activities was valued at $556.08 million relative to $558.01 million recorded a year prior. Operating expenses increased by 1 per cent from TT$207.74 million in 2023 to TT$209.61 million last year. Finance charges for the first quarter amounted to TT$44.04 million relative to TT$44.56 million reported in 2023.

As a result, operating profit for the first quarter amounted to TT$302.43 million, a 1 per cent decline relative to TT$305.72 million reported in 2023. Share of after-tax profits of associated companies totalled TT$3.75 million — a 257 per cent increase from the corresponding period last year. (2023: $1.05 million).

However, net profit decreased by 8% to TT$236.67 million (2023: TT$256.92 million). Net profit attributable to shareholders closed on TT$233.83 million, relative to the TT$255.67 million reported twelve months prior.

The decline in profit was mainly due to higher net insurance finance expenses partially offset by improved net insurance service result and net investment income. Consequently, earnings per share (EPS) for the quarter came out at TT$1.01/J$23.02 (2023: EPS: TT$1.10/J$24.76). The 12-month trailing EPS was J$67. GHL’s stock price closed last week at a price of $367.44 with a corresponding P/E ratio of 5.42x.

Balance sheet highlights

GHL’s assets climbed to TT$36.28 billion (2023: TT$34.78 billion), with this uptick in assets coming from a 5 per cent increase in ‘Investment securities’ closing at TT$25.41 billion. Shareholder’s equity was TT$4.03 billion (2023: TT$3.29 billion), representing a book value per share of TT$17.37/J$396.74 (2023: TT$14.20/J$318.98).