Guardian Holdings Ltd (GHL), the T&T-headquartered, regional insurance company, yesterday reported un-audited profit attributable to its shareholders of $713 million, for the financial year ended December 31, 2023, an increase of 54 per cent over the prior year’s results of $464 million.
The company reported net income from its investing activities of $1.92 billion in its 2023 financial year, which was more than twice the $823.7 million it generated from its investing activities in 2022.
In its unaudited results, GHL recorded $740.3 million in what it described as insurance service result for 2023, which was an improvement of 4.8 per cent over 2022’s $706.3 million.
In comments on GHL’s financials, its chairman, Robert Almeida said its Life, Health and Pension (LHP) segment contributed insurance revenues of $2.704 billion, up from $2.413 billion in the prior year by $291 million or 12 per cent.
Insurance revenue increased on all lines as clients continued to service their policies coupled with new business growth across all territories. This year-over-year increase in revenue was partially offset by increased insurance service expenses mainly due to health claims and directly attributable expenses, the company said.
The Property and Casualty (P&C) segment also reported increases in insurance revenues of $2.74 billion up from $2.45 billion in the prior year by $285 million or 12 per cent, principally from operations in the Trinidad, Jamaica and Dutch Caribbean markets.
All business lines experienced growth except Marine. Insurance service expenses were $1.2 million, 6 per cent lower than the prior year mainly from favourable claims experience for property. Reinsurance markets continue to tighten thus resulting in increased reinsurance expenses primarily on the property book of business. Revenue from the brokerage segment was $228 million, up 3 per cent from the prior year.
Almeida said its net income from investing activities also increased by $1.1 billion over the prior year to $1.9 billion.
“This increase was mainly due to a year-over-year increase in net fair value gains of $897 million, which included an unrealised net fair value gain of $157 million from the reclassification of financial assets backing life and annuity portfolios being transferred from amortised costs and fair value through other comprehensive income to fair value through the profit and loss,” said Almeida.
He added that the change aimed at diversifying financial assets and reducing the mismatch gap of assets and liabilities on insurance portfolios.
“The remaining year-over-year movement of $744 million includes net fair value gains achieved from all main classes of investments, with local equities being a significant contributor. Foreign exchange gains in the current year versus prior year losses also contributed to the favourable results.
“Your group continues to closely monitor volatile markets and rebalance portfolios, as necessary,” said Almeida.
The GHL chairman also noted that for the year ended December 31, 2023, earnings per share increased to $3.07 versus $2.00 in the comparative period.
“Equity value per share was $16.50 versus its comparative of $12.48,” Almeida said.
He noted that the group’s strong capitalisation and diversified business model positioned it well to respond to the changing business landscape and to navigate the ongoing uncertainties in its investment markets and the macro environment.
