Massive profits in 2012
The regional insurance giant, which is targeting Barbados to grow its business, has recorded massive profits during the last year.
Guardian Holdings Limited, now rebranded as Guardian Group, is reporting $353 million in after-tax profits for 2012. Writing in its Annual Report 2012, Chairman and Chief Executive Officer, Arthur Lok Jack revealed that this represented an increase of 35 per cent over the $261 million achieved in the previous year.
“Earnings per share therefore increased to $1.52 from $1.13,” Lok Jack added. “Had the group not adopted the prudent course of making a provision of $150 million with respect to possible impairement in value of the Pointe Simon Martinique Project, the group’s after-tax profit would have totalled $421 million and earnings per share would have been $1.82 million.”
The chairman announced too, that the conglomerate had once again been able to produce excellent results from its insurance activities, with profits from this sector growing to $529 million from $360 million, a 47 per cent rise over the year before.
“We have maintained a trend of excellent performance, despite persistent weak economic conditions in many neighbouring Caribbean countries,” he pointed out.
The Guardian Group boss reported that since the onset of the world financial crisis in 2008, its gross premiums written, or its top line, on a continuing operations basis, had delivered a 10 per cent compounded annual growth rate and reached $4.4 billion in 2012.
Lok Jack noted that over 50 per cent of revenue continued to be derived from the Group’s headquarters in Trinidad and Tobago, the sole investment grade rated country in the English-speaking Caribbean.
He said Jamaica and the Dutch Caribbean, the company’s other major regional markets, contributed 24 per cent and 21 per cent respectively.
“Our balance sheet shows that assets increased by $1 billion to $22.5 billion in 2012 from $21.5 billion in 2011. Equity grew by $85 million and now stand at $3.2 billion,” the chairman disclosed.
The CEO reported that the investment activities represented the other major source from which the group gets revenue and profit.
“Excluding the effects of the Pointe Simon impairment provision referred to above, net income from investments amount to $922 million, a decline of 13 per cent from the $1.1 billion in the previous year.” Lok Jack stated. (EJ)