May 8, 2023
Expressed in Trinidad and Tobago Dollars unless otherwise stated.
Guardian Holdings Limited (GHL), for the three months ended March 31, 2023 reported Net Insurance and Investment Result of TT$291.80 million relative to TT$313.41 million recorded in the prior period. GHL noted that, “While the Group delivered revenue growth year-over-year this was partially offset by increasing reinsurance costs, higher operational expenses due to sales activities and IFRS 17 implementation and growth of finance expenses partially due to interest rates movements on the liabilities.”
Additionally, “Favourable contributions came from both our Life, Health and Pension (LHP) and Property and Casualty (P&C) segments from growth in our revenue lines. Overall insurance revenue, net of claims and insurance related expenses, increased by $128 million partially offset by increased reinsurance expenses of $83 million due to higher reinsurance costs from P&C lines.”
Fee and commission income from brokerage activities rose 30% to TT$50.12 million (2022: TT$38.58 million), mainly due to brokerage activities in the Dutch Caribbean. Consequently, net income from all activities fell 3% to TT$341.91 million (2022: TT$351.99 million).
Operating expenses increased 15% to TT$198.72 million up from TT$172.76 million booked in 2022. Management highlighted that the increase was, “mainly related to investment in our people, sales-related expenses, growth strategies across the Group’s business segments, coupled with continued investment in our IFRS 17 implementation activities.”
The Company booked finance charges of TT$44.56 million for the period (2022: TT$51.99 million).
Operating profit for the three months ended March 31, 2023 amounted to TT$98.63 million relative to an operating profit of TT$127.23 million booked for the comparable period last year.
Share of after-tax profits of associated companies amounted to TT$1.05 million (2022: TT$4.15 million).
Profit before taxation amounted to TT$99.68 million, 24% down from TT$131.38 million in 2022.
Following taxes of TT$37.66 million in 2023 (2022: TT$2.28 million), profit for the period totalled TT$62.02 million for the three months ended March 31, 2023, compared to a profit of TT$129.10 million reported last year.
Net profit attributable to shareholders amounted to TT$60.77 million relative to a profit attributable to shareholders of TT$128.56 million reported for the same period in 2022, a 53% decline.
Total comprehensive income attributable to equity holders of the company amounted to TT$199.92 million (2022: TT$130.52 million) for the three months ended March 31, 2023.
As such, earnings per share for the period amounted to TT$0.26 (J$5.88) relative to an EPS of TT$0.55 (J$12.48) in 2022. The trailing twelve months EPS amounted to TT$4.45 (J$99.97). The number of shares used in our calculations amounted to 232,024,923 units. The stock last traded at J$495.00 as at May 5, 2023 with a corresponding P/E ratio of 4.96 times.
GHL stated, “Effective 1 January 2023 the Group implemented International Financial Reporting Standards (IFRS) 17 – Insurance Contracts. The new accounting standard materially changes the financial statements in terms of presentation, recognition and measurement of insurance contracts mainly in the Life, Health and Pension (LHP) segment.”
Additionally, “The Group, in accordance with the transition provisions of IFRS 17, has restated its prior year comparative results and recognized the total impact on initial application of IFRS 17 in the opening consolidated statement of financial position as at 1 January 2022.”
Balance Sheet at a glance:-
Total assets amounted to TT$36.55 billion as at March 31, 2023, 5% higher than TT$34.66 billion booked twelve months earlier. ‘Insurance contract assets’ contributed the most to the increase in asset base by amounting to TT$1.06 billion, 214% billion greater than TT$338.04 million booked March 31, 2022.
Shareholder’s equity as at March 31, 2023 stood at TT$4.42 billion versus TT$4.24 billion in the prior corresponding period. Thus, resulting in a book value per share (BVPS) of TT$19.07 (J$428.47) relative to a BVPS of TT$18.27 (J$411.61) in 2022.
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