For the first half of 2022 Guardian Holdings Ltd produced commendable results of which profit attributable to equity shareholders was $436 million, representing a 70 per cent increase over the corresponding period last year of $256 million.
Earnings per share increased to $1.88 versus the comparative period of $1.10, according to the company’s second quarter results to June 30, 2022.
Patrick Hylton, the company’s chairman, noted that performance was driven from its life, health and pensions segment whilst after tax profit from property and casualty and the brokerage operations were relatively flat.
Net income from insurance activities grew to $681 million, a 63 per cent increase from the $417 million in prior year mainly attributable to favourable reserve movements on account of capitalising on investment and expense management opportunities, Hylton said.
“The world has seen a perfect storm of macroeconomic and geopolitical events, which has led to very high levels of volatility across financial markets, and which has also impacted our portfolios,” he also noted.
Additionally, net income from investing activities fell from $770 million to $570 million, a reduction of 26 per cent.
Hylton said this decrease was principally due to net fair value losses of $116 million in the current period, compared to net fair value gains in the prior period of $111 million, resulting in an unfavourable movement of $227 million.
The unfavourable fair value movement on the group’s local and global investments was partially offset by an increase in investment income of $77 million, arising out of increased investment portfolio and income earned.
Operating expenses were $742 million, a three per cent decrease over the $769 million reported in the corresponding period last year.
“As previously communicated, 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.
“As the year progresses, we expect our past investment in upgrades to our operations and our operating structure to continue to reap significant benefits. Your board remains optimistic and excited about the group’s financial performance for the year and our future,” Hylton added.