Guardian Holdings post 25 per cent profit

Marcella Scarlett, Business Reporter



Guardian Group Holdings has reported an almost 25 per cent increase in profit at the end of its third quarter ending September 2011 despite what is said were difficult economic conditions and losses from operations in associated companies.



Net profit increased from TT$190.2 million to TT$242.3 million.



The upward movement in profit resulted from a six per cent increase in gross premiums written, from TT$3.5 billion to TT$3.7 million, and a 50 per cent increase in net income from insurance underwriting activities from TT$137.3 million to TT$206 million.



The group also reported increased volume of shares distributed. Earnings per share increased from TT$0.93 to TT$1.05.



"These very satisfactory results were achieved notwithstanding the fact that the Group continues in a very challenging environment," said Arthur Lok Jack, the Group's chairman, in a statement accompanying the financial report.



The Group experienced a reduction in net income from investing activities, moving down to TT$784.26 million from TT$823.3 million in the comparable period last year.



This was attributed to the downward trend in interest rates. The company's profitability was also eroded by increases in expense and finance charges, which moved up by almost 50 per cent from TT$137 million to TT$206 million.



There was also a TT$33 million loss from a revaluation adjustment in respect of one investment property in Jamaica and losses incurred in the Lloyds of London operation prior to its sale.



"The prevailing difficult international economic climate, characterised, inter-alia, by unprecedented low interest rates, continues to present challenges and impact negatively on the Group's investment activities," said Lok Jack.



"Sound profitable investment opportunities are limited and where they exist, generate historically low returns," he added.



The Group's net assets increased by almost TT$1 billion over the December 2010 review period to TT$21.9 billion.



Lok Jack said he was pleased with the performance during the period.

"We are well positioned to grow our business, both organically and through acquisitions, as well as withstand the challenges presented by the current economic climate," he said.



marcella.scarlett@gleanerjm.com