March 24, 2022
Guardian Holding Limited (GHL), for the year ended December 31, 2021, reported Insurance premium income of TT$7.01 billion, 9% higher than the TT$6.45 billion reported for 2020. As a result, Insurance premium ceded to reinsurers increased by 11% to TT$2.34 billion from TT$2.10 billion for the year ended December 31, 2020.
Underwriting expenses amounted to TT$4.08 billion, 20% higher than the TT$3.41 billion reported a year prior. Consequently, net results from insurance activities for the year fell 25%, year over year, from TT$1.41 billion in 2020 to TT$1.06 billion in 2021, whereas for the quarter, net results from insurance activities amounted to TT$430.92 million (2020: TT$415.46 million). GHL noted that, “This performance was adversely affected by the US$10 million loss in Guardian Re our Bermuda-based reinsurance company, as was disclose in 3rd quarter 20221 Chairman’s report. Our life insurance operations have been negatively impacted by policy lapses, largely attributed to the challenging economic environment. The latter impact manifested in a subdued 4th quarter 2021 performance. We are, however, encouraged by the Group’s ability to grow in Gross Written Premiums and Net Written Premiums.”
Net income from investing activities increased to TT$1.61 billion in 2021 from TT$988.64 million in 2020, a 63% increase. For the quarter, net income from investing activities rose 12% to TT$457.89 million (2020: TT$407.89 million). Management noted that, “A significant element of this increase is attributable to fair value gain in local market equities of our respective operating jurisdictions. The Group, as expected, continues to monitor the investment markets and rebalance portfolios as necessary.”
Fee and commission income from brokerage activities for the year rose marginally by 0.23% to TT$144.66 million (2020: TT$144.33 million). Whereas for the quarter, fee and commission income from brokerage activities fell 6% to TT$35.24 million (TT$37.50 million).
Net income from all activities for the year rose 11% to TT$2.82 billion (2020: TT$2.55 billion). Net impairment losses on financial assets the period under review was TT$136.02 million in 2021 relative to a loss of TT$15.70 million in 2020.
Operating expenses for the year ended December 31, 2021 rose 9% to close at TT$1.50 billion relative to TT$1.37 billion in 2020. Whereas, operating expenses for the fourth quarter closed at TT$427.67 million relative to TT$449.50 million in 2020.
The Company also booked finance charges of TT$199.73 million for the year (2020: TT$153.85 million).
Operating profit for the year ended December 31, 2021 amounted to TT$979.35 million relative to an operating profit of TT$1 billion booked for the comparable period last year. Operating profit for the fourth quarter ended December 31, 2021 amounted to TT$387.07 million relative to an operating profit of TT$376.61 million, a 3% increase.
Share of after tax profits of associated companies amounted to TT$34.02 million (2020: TT$17.71 million).
Profit before taxation amounted to TT$1.01 billion relative to a profit of TT$1.02 billion in 2020. For the quarter, profit before taxation totalled TT$404.53 million (2020: TT$374.94 million).
Following taxes of TT$215.02 million in 2021 (2020: TT$243.84 million), net profit after tax totalled TT$798.35 million for the year ended December 31, 2021, compared to a net profit of TT$778.25 million reported last year. For the fourth quarter, net profit after taxation amounted to TT$325.83 million (2020: TT$302.08 million).
Deficit attributable to participating policyholders was TT$12.55 million relative to a surplus of TT$2.04 million in 2020. Therefore, profit for the period amounted to TT$785.80 million relative to a net profit of TT$780.29 million in 2020. For the quarter profit amounted to was TT$325.60 million (2020: TT$290.24 million).
Net profit attributable to shareholders amounted to TT$782.33 million relative to a profit attributable to shareholders of TT$774.46 million in 2020. For the quarter, net profit attributable to shareholders was TT$325.25 million (2020: TT$289.23 million).
Total comprehensive profit amounted to TT$353.55 million (2020: TT$862.76 million) for the year ended December 31, 2021. For the quarter, total comprehensive profit amounted to TT$109.24 million (2020: TT$478.03 million)
As such, earning per share for the period amounted to J$77.32 (TT$3.37) relative to an EPS of J$70.99 (TT$3.34) in 2020. EPS for the fourth quarter amounted to J$32.15 (TT$1.40) relative to an EPS of J$26.51 (TT$1.25) in 2020. The stock traded at J$550 as at March 23, 2022 with a corresponding P/E ratio of 7.83 times. The number of shares used in our calculations amounted to 232,024,923 units.
Balance Sheet at a Glance:-
Total assets amounted to TT$34.58 billion as at December 31, 2021, this represents a 5% increase over the TT$33.02 billion reported in 2020. ‘Investment securities’ and ‘Investment securities of mutual fund unit holders’ contributed the most the assets base amounting to TT$21.90 billion (2020:TT$20.66 billion) and TT$1.76 billion (2020:TT$1.47 billion) respectively.
Shareholder’s equity as at December 31, 2021 stood at TT$4.98 billion (2020: $4.68 billion) resulting in book value per share of TT$21.44 (J$491.65) relative to TT$20.13 (J$428.13) as at December 31, 2020.
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.