Robert Almeida Chairman For Guardian Holdings Limited Has Released His First Quarterly Chairman’s Report Covering The Half-Year Financial Performance Of The Group Following Appointment As Chairman.
For the half year ended 30th June, 2023, the Group delivered strong results from continued growth across our operations in the English and Dutch Caribbean.
Group profit attributable to equity shareholders amounted to $251 million, an increase of $123 million or 95% over the corresponding period last year.
Earnings per share increased to $1.08 versus $0.55 in the comparative period last year.
Our results benefited from year-over-year revenue growth as well as fair value gains generated in the current year versus losses in the prior year. This was partially offset by increasing reinsurance costs, higher operating expenses due to sales activities and IFRS 17 implementation as well as an increase in insurance finance expenses partially due to the impact of interest rate movements on liabilities and higher taxation expense.
Both Life, Health and Pension (LHP) and Property and Casualty (P&C) segments contributed favourably to the Group’s results, as they continue to build strong momentum. Insurance service results increased by $77 million or 29% from $268 million in the prior year to $345 million in the current period. Overall insurance revenue, net of claims and insurance related expenses, increased by $183 million partially offset by increased reinsurance expenses of $106 million due to higher reinsurance costs from P&C lines.
Net income from investing activities also increased by $601 million over the prior year of $268 million. The net change from fair value movements over prior year were gains of $572 million mainly from government securities, corporate bonds and international equities.
Foreign exchange gains in current year versus prior year losses also contributed to the favourable results. Your Group continues to closely monitor volatile markets and rebalance portfolios as necessary.
Net insurance finance expenses increased by $446 million over the prior year mainly from our LHP segment. Among other items, finance expenses include the impact of interest rate movements and returns earned by our policyholders who hold insurance products with an investment component.
For the first half of the current year, the impact of those interest rate movements was less favourable to the Group’s insurance liabilities. However, it is worthy to note that the impact was favourable for our clients as they earned higher investment income in this period due to growth in the policyholders’ underlying funds, which resulted in higher expenses for the Group.
Fees and commissions from brokerage activities increased by $8 million or 10% year-on-year mainly due to brokerage activities in the Dutch Caribbean.
Our Asset Management segment also reported growth in after-tax profit during the half-year of 41% over the prior year. The Group continues to focus efforts on developing this segment through third-party business and product offerings.
Operating expenses increased by $47 million or 13% year-over-year and are mainly related to investment in our people, sale-related expenses, growth strategies across the business segments, coupled with continued investment in our IFRS 17 implementation activities.
Your Group remains focused on optimising performance, capitalising on emerging opportunities, while at the same time managing and mitigating known and emerging risks.
Based on the overall performance of the half year under review, your Directors have proposed an interim dividend of 22 cents (2022: 20 cents) to be paid to shareholders on record as at 21st August, 2023 when the register of members will be closed for this purpose.
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