For the six months ended June 30, 2022
- Guardian Holding Limited (GHL), for the six months ended June 30, 2022 reported gross premium written of TT$3.81 billion, 2% higher than TT$3.73 billion reported for 2021. Net written premium increased by 5% from TT$2.25 billion last year to TT$2.37 billion for the six months ended June 30, 2022. Gross premium written of the quarter amounted to TT$1.68 billion, 1% less than TT$1.69 billion reported for 2021. During the quarter Net written premium rose 4% from TT$998.63 million last year to TT$1.04 billion. The Company noted that, “Performance was driven from our Life, Health and Pensions segment whilst after tax profit from Property and Casualty and the Brokerage operations was relatively flat.”
- Net results from insurance activities rose 63%, year over year, from TT$417.01 million in 2021 to TT$680.76 million in 2022, while net income from investing activities decreased 26% to TT$570.44 million in 2022 from TT$769.95 million in 2021. GHL noted that the increase was “mainly attributable to favourable reserve movements on account of capitalising on investment and expense management opportunities.”
- Fee and commission income from brokerage activities rose 6% to TT$76.30 million (2021: TT$71.98 million). Consequently, net income from all activities rose 5% to TT$1.33 billion (2021: TT$1.26 billion).
- Net impairment gain on financial assets was TT$2.1 million in 2022 relative to a loss of TT$58.79 million in 2021. The company note, “the world has seen a perfect storm of macroeconomic and geopolitical events, whcihhas led to very high levels of volatility across financial markets, and which has also impacted our portfolios.”
- Operating expenses decreased 3% to TT$742.28 million from TT$768.64 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$103.82 million for the six months (2021: TT$103 million).
- Operating profit for the six months ended June 30, 2022 amounted to TT$483.48 million relative to an operating profit of TT$328.53 million booked for the comparable period last year.
- Share of after tax profits of associated companies amounted to TT$10.87 million (2021: TT$9.01 million).
- Profit before taxation amounted to TT$494.35 million, 46% up from TT$337.54 million in 2021. Following taxes of TT$45.17 million in 2022 (2021: TT$77.25 million), profit after tax totalled TT$449.17 million for the six months ended June 30, 2022, compared to a profit of TT$260.29 million reported last year.
- Deficit attributable to participating policyholders was TT$11.82 million relative to a deficit of TT$2.50 in 2021. Therefore, profit from continuing operations amounted to TT$437.35 million a 70% increase from TT$257.79 million reported in 2021. Net profit for the second quarter totalled $257.44 million (2021: $81 million).
- Net profit attributable to shareholders amounted to TT$435.71 million relative to a profit attributable to shareholders of TT$256.14 million reported for the same period in 2021.
- Total comprehensive income attributable to equity holders of the company amounted to TT$73.08 million (2021: loss of TT$25.44 million) for the six months ended June 30, 2022.
- As such, earning per share for the period amounted to TT$1.88 (J$42) relative to an EPS of TT$1.1 (J$24) in 2021. The trailing twelve months EPS amounted to TT$4.15 (J$92.9). The number of shares used in our calculations amounted to 232,024,923 units. The stock traded at J$542.18 as at August 5, 2022 with a corresponding P/E ratio of 5.84 times.
Balance Sheet at a glance:-
- Total assets amounted to TT$34.90 billion as at June 30, 2022, 2% or TT$593.39 million higher than $34.30 billion booked twelve months earlier. ‘Investment Securities’ contributed the most the increase in assets base by amounting to TT$21.27 billion, TT$134.27 million greater than TT$21.14 billion booked June 30, 2021.
- Shareholder’s equity as at June 30, 2022 stood at TT$4.93 billion resulting in book value per share of TT$21.28 (J$476.86), (2021: TT$4.64 billion, BVPS TT$20.05).
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.