Guardian Holdings profit declines slightly

Guardian Holdings Limited has recorded a profit of TT$465 million for financial year ended December 31, 2011, a marginal decline of six per cent when compared with the results for the previous year.



However, the company's profits were impacted during the year, having booked a provision for losses of TT$210 million on the sale of its UK businesses, Lloyd’s of London Managing Agency, Jubilee.



After adjusting for that provision along with a loss of TT$8.7 million attributed to policyholders, it brought the company's net profit for the year to TT$246 million compared with TT$425 million earned the previous year.



Notwithstanding, given what the company said was the overall satisfactory results, its continued positive outlook for the business and a positive generation of net cash from its activities of TT$299 million, the board has decided to pay a final dividend of TT$0.37 cents on April 16, 2012, bringing total payout for the year to TT$0.52, a four per cent increase over the TT$0.50 paid in 2010.



GHL said its core Caribbean insurance activities recorded one of their best results during the review period, with growth in net income from underwriting activities to TT$360 million, up from TT$261 million the prior year.



Gross premiums written also increased by 11 per cent to TT$4 billion from TT$3.6 billion.



However, with the current low interest rates environment GHL said revenues from investing activities declined to TT$1.1 billion compared to the previous year's TT$1.2 billion, representing a decrease of 8.3 per cent.



GHL is the parent company for an integrated financial services group with a focus on life, health, property and casualty insurance, pensions and asset management.



It has subsidiaries spanning the English and Dutch Caribbean with interest in the United Kingdom.



Over the past few years the company has increasingly reorganize its business lines, disposing of non-core assets to return to its Caribbean roots.



Core companies in the insurance conglomerate include Guardian Life Limited, Guardian General, and Fatum Holding NV based in Aruba, Bonaire and Curacao.



The company is listed on both the Jamaica Stock Exchange and the Trinidad Stock Exchange. At the close of trade on Tuesday, no change was reflected in the share price which stood at $165.



Reporting what the company said was a commendable reduction in expenses, GHL recorded operating expense of TT$729 million compared with TT$728 million recorded the previous year.



Finance charges were, however, higher by TT$27 million, up from TT$82.8 million to TT$110 million due to what GHL said was a period of negative carry associated with the TT$1 billion bond raised in the first quarter of the year.



With a one-off write down in the value of a real estate investment in Jamaica, GHL said it recorded a loss of TT$25 million from associated companies, compared with a gain of TT$23 million in 2010.



sabrina.gordon@gleanerjm.com