Guardian Holdings reports hefty profit

Guardian Holdings Limited (GHL) rebounded from a loss position at the end of its last financial year ended December 31, 2010 reporting net profit of TT$425 million compared with the previous years when it had a net loss of TT$824 million.

GHL, parent company of an integrated financial services group with a focus on life, health, property and casualty insurance, pensions and asset management in the Caribbean, in 2009 racked up losses from non-performing subsidiaries which sent the group profit and loss statement into the red at the end of the year.

At the end of 2010, however, the company recovered after the group rid itself of non-performing companies Zenith Insurance and its associated businesses - booking a loss of TT$1.2 billion as a result.

For the reporting period up to December 2010, GHL showed improvement in all areas. Insurance premium income increased by 23 per cent to TT$4.8 billion, up from TT$3.9 billion for the corresponding period in 2009.

Under-writing expenses were down, but net income from insurance and investment activities increased to TT$1.4 billion, up from TT$1.29 billion in 2009.

Operating profit for the reporting period totalled TT$550.88 million, compared to TT$465 million in 2009.

While slightly down, GHL has an on balance sheet asset base of TT$20.9 billion.

But at the same time, the company's cash flow statement remains less than healthy, showing a negative balance.

At the end of the company's financial year, cash and cash equivalent decreased to negative TT$902.7 million.

Even as GHL wrapped up negotiations and signed off on the sale of 12.8 per cent of the company in August last year to IFC in exchange for capital injection of US$75 million or TT$473 million, its cash flow statement still reflected a decline.

GHL, although not one of the more actively traded stocks on the Jamaica Stock Exchange is currently priced at J$220.

It has more than 200 million issued shares valued at J$44 billion.

sabrina.gordon@gleanerjm.com