November 6, 2023
Expressed in Trinidad and Tobago Dollars unless otherwise stated.
Guardian Holdings Limited (GHL) for the nine months ended September 30, 2023, reported a 19% increase in net results from insurance activities totaling TT$493.13 million compared to TT$414.77 million in the corresponding period last year. Net Results from Insurance Activities for the third quarter showed a 1% increase to close at TT$148.25 million compared to TT$146.55 million for the comparable quarter of 2022.
Net Income from Investing Activities amounted to TT$1.21 billion (2022: TT$464.98 million), this represents a jump of 161% year over year. Consequently, net insurance finance expense amounted to TT$538.19 million compared to TT$4.63 million for the nine months.
GHL highlighted, “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 increased sales activities and IFRS 17 implementation costs as well as an increase in insurance finance expenses partially due to the impact of interest rate movements on liabilities and higher taxation expense.” Additionally, “The excellent performance as of 30 September 2023 was driven by our Life, Health and Pension (LHP) segment.”
GHL reported net insurance and investment result for the nine months of TT$1.12 billion relative to TT$875.12 million. Net income from all activities resulted in a 31% increase closing at TT$1.29 billion compared to TT$987.30 million booked a year prior. Net income from all activities for the third quarter amounted to TT$432.71 million versus TT$370.37 million recorded in 2022.
Operating Expenses increased by 4% from TT$593.59 million in 2022 to TT$615.82 million in the period under review. As a result, operating profit for the nine months amounted to TT$541.01 million, a 127% increase relative to TT$238.59 million reported in 2022. Operating profit for the third quarter was TT$189.12 million (2022: TT$94.91 million).
Finance Charges for the nine months amounted to TT$132.59 million, a 15% decrease relative to TT$155.11 million reported in 2022. Finance Charges for the third quarter amounted to TT$43.89 million (2022: TT$51.29 million).
Profit before Taxation for the nine months had a 120% increase to reach TT$550.21 million (2022: TT$249.60 million). Taxation for the nine months amounted to TT$163.93 million, a 45% increase from the TT$113.07 million reported in 2022.
Net Profit increased by 183% to TT$386.27 million (2022: TT$136.52 million). Net Profit for the quarter totalled TT$132.57 million relative to the TT$6.53 million booked in the prior year’s quarter.
Profit attributable to shareholders for the nine-month period totalled TT$381.85 million, a 187% jump relative to the TT$133.20 million reported twelve months prior. For the quarter, profit attributable to shareholders amounted to TT$131.00 million compared to the TT$4.85 million reported in 2022.
GHL reminded that “The Group implemented International Financial Reporting Standard (IFRS) 17 Insurance Contracts effective 1st January 2023. IFRS 17 replaced IFRS 4 Insurance Contracts and materially changed the financial statements in terms of presentation, recognition and measurement of insurance contracts mainly in the Life, Health and Pension segment.”
Consequently, Earnings Per Share for the nine months amounted to J$38.03 (TT$1.65) relative to an EPS of J$13.03 (TT$0.57) in 2022. The twelve-month trailing EPS was J$133.31 (TT$5.81) and the number of shares used in these calculations was 232,024,923.
Notably, GHL’s stock price closed the trading period on November 3, 2023, at a price of J$439.98 with a corresponding P/E ratio of 3.30x.
Balance Sheet Highlights
The company’s assets closed at TT$36.57 billion (2022: TT$34.83 billion). This resulted mainly from an 8% increase in Investment Securities to close at TT$22.86 billion.
Shareholder’s equity was TT$4.90 billion (2022: TT$4.12 billion), representing a book value per share of TT$21.13 (2022: TT$17.77).
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