Guardian Group Reporting Excellent Results For 2018, With Profits Of TT$534 Million, An Increase Of 31% Over 2017 TT$407 Million.
Henry Peter Ganteaume, Deputy Chairman of Guardian Holdings Limited or the Guardian Group, is reporting excellent results for the year ended 31st December, 2018, with profits attributable to shareholders amounting to TT$534 million, an increase of 31% over those of 2017, TT$407 million.
Earnings per share were $2.30 versus $1.75 in the prior year he reports, as shareholders’ equity was reduced by a one-time charge of $182 million resulting from the adoption of IFRS 9, Financial Instruments, the new Accounting Standard governing the classification and measurement of financial instruments.
This notwithstanding, equity grew to TT$3.4 billion at 31st December, 2018 from TT$3.3 billion at close of the prior year.
Commenting further he reports that there were positive and negative influencing factors on the consolidated results, but shareholders should view with satisfaction the performance of the group during the last year he reports.
Insurance underwriting activities drove the performance led by the Life, Health and Pension business segment which had a stellar result achieved primarily from improved persistency, expense management and improved product mix.
Despite difficult economic circumstances in the financial markets, this segment successfully increased Net Written Premiums by 7%.
The Property and Casualty business segment returned a satisfactory performance as it was spared major catastrophic events during the year.
However, the persistent soft market conditions led to a marginal increase only to Net Written Premiums.
Also, of note he reports were the not-insignificant profits made by the Asset Management and Brokerage businesses as these two ‘segments’ hold promise to become important and non-risk exposed elements of the overall Group earnings profile over the relatively short term.
Net income from investing activities fell from $1,191 million to $982 million, driven primarily by volatility in Global equity markets which resulted in a Net fair value loss of $12 million in 2018 compared to an exceptional gain of $246 million in 2017.
In the face of the low interest rate environment, with attendant challenge to redeploy funds profitably, the Group was successful in improving actual cash returns from investments and achieved a moderate level of realised gains he said.
Operating expenses increased by 7% as the Group is undertaking a number of initiatives targeted to increase revenue growth or reduce future operating cost.
Key among these initiatives is the focus on technology advancements.
Based upon the performance, the directors have proposed a final dividend of 48¢, which will bring the total dividend to 71¢, an increase of 4¢ or 6% over 2017.
This dividend will be paid to shareholders on record on 18th March, 2019.