GHL reports three months net profits of $176.79 million

May 10, 2021

Guardian Holding Limited (GHL), for the three months ended March 31, 2021 reported gross premium written of TT$2.04 billion, 3% higher than the TT$1.98 billion reported for 2020. As a result, net written premium increased by 1% from TT$1.24 billion last year to TT$1.25 billion for the three months ended March 31, 2021.  The Company noted that, “the Life, Health and Pension business segment recorded a 2% growth in gross premiums primarily from the Trinidad and Jamaican markets. The integration of the life insurance and annuities portfolio acquired by Guardian Life Limited at the end of Q3 2020 from NCB Insurance Company Limited, has contributed to the increase in this segment’s results for the quarter. The Property and Casualty business segment also recorded a growth in gross premiums by 4% primarily from our operations in the Netherlands.”

Net results from insurance activities rose 15%, year over year, from TT$180.75 million in 2020 to TT$208.04 million in 2021, while net income from investing activities increased to TT$332.40 million in 2021 fromTT$26.75 million in 2020.  GHL noted that, “This increase was primarily on account of the net fair value gains which recorded a favourable movement if $354 million, from a loss of $329 million in the prior period to a gain of $25 million in this period, driven by positive movement in the Group’s regional equity portfolios.”

Fee and commission income from brokerage activities fell 8% to TT$36.71 million (2020: TT$39.78 million).

Net income from all activities rose 133% to TT$577.16 million (2020: TT$247.27 million).

Net impairment losses on financial assets was TT$5.02 million in 2021 relative to a gain of TT$12.70 million in 2020.

Operating expenses was relatively unchanged at TT$309.07 million relative to TT$309.12 million in 2020.

The Company also booked finance charges of TT$50.72 million for the three months (2020: TT$36.72 million). Management also stated that, “the Group is closely monitoring expenses at as it continues to incur costs associated with the implementation of IFRS 17 (Insurance Contracts) as well as with our Group wide transformation initiatives.”

Operating profit for the three months ended March 31, 2021 amounted to TT$212.34 million relative to an operating loss of TT$85.87 million booked for the comparable period last year.

Share of after tax profits of associated companies amounted to TT$3.57 million (2020: TT$4.79 million).

Profit before taxation amounted to TT$215.91 million relative to a loss of TT$81.08 million in 2020. Following taxes of TT$38.64 million in 2021 and a taxation credit of TT$40.18 million in 2020, net profit after tax totalled TT$177.27 million for the three months ended March 31, 2021, compared to a net loss of TT$40.90 million reported last year.

Surplus attributable to participating policyholders was TT$482,000 relative to a deficit of TT$6.15 million in 2020. Therefore, profit for the period amounted to TT$176.79 million relative to a net loss of TT$34.75 million in 2020.

Net profit attributable to shareholders amounted to TT$176.79 million relative to a loss attributable to shareholders of TT$34.75 million.

Total comprehensive loss amounted to TT$28.67 million (2020: TT$303.63 million) for the three months ended March 31, 2021.

As such, earning per share for the period amounted to J$16.51 (TT$0.76) relative to an LPS of J$3.01 (TT$0.15) in 2020. The trailing twelve months EPS amounted to J$92.08 (TT$140). The stock traded at J$899.58 as at May 10, 2021 with a corresponding P/E ratio of 9.77 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$33.71 billion as at March 31, 2021. ‘Investment securities’ and ‘cash and cash equivalent’ contributed the most the assets base amounting to TT$20.80 billion and TT$3.35 billion, respectively.

Shareholder’s equity as at March 31, 2021 stood at TT$4.64 billion resulting in book value per share of J$433.42 (TT$20.00).


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