GHL reports 2% increase in three months net profit attributable to shareholders

May 6, 2022

Guardian Holding Limited (GHL), for the three months ended March 31, 2022 reported gross premium written of TT$2.14 billion, 5% higher than TT$2.04 billion reported for 2021. As a result, net written premium increased by 7% from TT$1.25 billion last year to TT$1.33 billion for the three months ended March 31, 2022.  The Company noted that, “The Life, Health and Pensions business segment recorded 9% growth in Gross written premiums primarily from the Trinidad and Tobago and Dutch markets. The Property and Casualty business segment also recorded growth, albeit at a lower level, in Gross written premiums.”

Net results from insurance activities rose 28%, year over year, from TT$208.04 million in 2021 to TT$265.61 million in 2022, while net income from investing activities decreased 8% to TT$305.53 million in 2022 fromTT$332.40 million in 2021.  GHL noted that, “This decrease was principally due to Net fair value losses of $33 million in the current period, compared to Net fair value gains in the prior period of $25 million, resulting in an unfavourable movement of $58 million. The unfavourable fair value movement on the Group’s local and global investments was partially offset by an increase in investment income of $28 million, arising out of an increased investment portfolio.”

Fee and commission income from brokerage activities rose 10% to TT$40.51 million (2021: TT$36.71 million). Consequently, net income from all activities rose 6% to TT$611.66 million (2021: TT$577.16 million).

Net impairment losses on financial assets was TT$17.46 million in 2022 relative to a loss of TT$5.03 million in 2021.

Operating expenses increased 7% to TT$332.21 million up from TT$309.07 million booked in 2021. Management also stated 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.”

The Company also booked finance charges of TT$51.99 million for the three months (2021: TT$50.72 million).

Operating profit for the three months ended March 31, 2022 amounted to TT$209.99 million relative to an operating profit of TT$212.34 million booked for the comparable period last year.

Share of after tax profits of associated companies amounted to TT$4.29 million (2021: TT$3.57 million).

Profit before taxation amounted to TT$214.28 million, 1% down from TT$215.91 million in 2021. Following taxes of TT$26.22 million in 2022 (2021: TT$38.64 million), profit after tax totalled TT$188.06 million for the three months ended March 31, 2022, compared to a profit of TT$177.27 million reported last year.

Deficit attributable to participating policyholders was TT$8.14 million relative to a deficit of TT$482,000 in 2021. Therefore, profit for the period amounted to TT$179.92 million 2% increase from TT$176.79 million in 2021.

Net profit attributable to shareholders amounted to TT$179.38 million relative to a profit attributable to shareholders of TT$176.12 million reported for the same period in 2021.

Total comprehensive loss attributable to equity holders of the company amounted to TT$10.13 million (2021: TT$29.33 million) for the three months ended March 31, 2022.

As such, earning per share for the period amounted to TT$0.77 (J$17.42) relative to an EPS of TT$0.76 (J$16.45) in 2021. The trailing twelve months EPS amounted to TT$3.39 (J$76.29). The number of shares used in our calculations amounted to 232,024,923 units. The stock traded at J$520.91 as at May 5, 2022 with a corresponding P/E ratio of 6.83 times.

Balance Sheet at a glance:-

Total assets amounted to TT$35.12 billion as at March 31, 2022, 4% or TT$1.41 billion higher than $33.71 billion booked twelve months earlier. ‘Investment securities’ contributed the most the increase in assets base by amounting to TT$21.81 billion, TT$1.01 billion greater than TT$20.80 billion booked March 31, 2021.

Shareholder’s equity as at March 31, 2022 stood at TT$4.84 billion resulting in book value per share of TT$20.88 (J$470.38). (2021: TT$4.64 billion, BVPS TT$20).


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