analyst briefing - guardian groupmyguardiangroup.com/uploads/announcements/brokers... ·...

++ INVESTMENTINSURANCE RETIREMENT =

INSUR ANCE RET IREMENT INVEST MENT S

ANALYST BRIEFING

GUARDIAN HOLDINGS LIMITED

1 GUARDIAN DRIVE

WESTMOORINGS • TRINIDAD


Financial Results – Year Ended 31st December 2018

Analyst Briefing

8 March 2019


RAVI TEWARIGROUP CHIEF EXECUTIVE OFFICER


3

CONSOLIDATED FINANCIAL HIGHLIGHTS

FY 2018$705MM

FY 2017$520MM

$184MM,35%

Profit Before Tax

Profit attributable to equity shareholders increased $127MM, 31% over the prior period owing primarily to higher Net results from insurance activities, partially offset by a decline in Net realised and unrealised gains. This reduction of -$224MM were principally due to short-term price fluctuation on the Group’s equity portfolios.

The Group also experienced higher operating expenses arising out of a number of initiatives targeted to either a moderate level of increase revenue growth or reduce the operating cost in the future.

TT$'MM 2018 2017 Var $ Var %

Reported

Profit attributed to equity holders of the parent 534 407 127 31%

Basic EPS $2.30 $ 1.75 $0.55 31%


Consolidated Financial Highlights


5

SUMMARY CONSOLIDATED FINANCIALS

Note 2

Note 1

LHP increased $362MM mainly from organic growth initiatives and improved renewals

P&C increased $98MM as it was spared major catastrophic events compared to 2017

Note 2 Substantially due to the decline of global equity markets in 2018

Note 3Mainly higher investment income

Note 1

Note 3

TT$'MM 2018 2017 Var $ Var %

Net income from insurance activities 863 403 460 114%

Net realised and unrealised gains 36 260 (224) -86%

Net income from other investing activities 946 931 15 2%

Net income from brokerage activities 25 17 8 45%

Net income from all activities 1,870 1,611 259 16%

Net impairment losses on financial assets (1) (6) 5 83%

Operating expenses (1,046) (975) (71) -7%

Finance charges (136) (129) (7) -5%

Share of associate results 17 19 (2) -8%

Profit before tax 705 520 184 35%

Taxation & other (169) (111) (58) -53%

Profit for the year 535 410 126 31%

Profit attributable to NCI (1) (3) 2 67%

Profit attributable to equity holders of the parent 534 407 128 31%


6

SUMMARY CONSOLIDATED FINANCIALS

Note 5

Note 4Mainly higher commission from Thoma RAB portfolio

Note 5Net impairment losses on financial assets of -$1MM 2018 (under IFRS 9) compared to -$6MM in 2017 (under IAS 39)

Note 6Mainly driven by Group wide strategic initiatives

Note 4

Note 6


5,011 5,152

5,475 5,473

5,861

4,400

4,600

4,800

5,000

5,200

5,400

5,600

5,800

6,000

2014 2015 2016 2017 2018

$MM

4% CAGR

7

GPW increased $389MM, 7% over 2017:

LHP: $223MM, 7% (mainly organic growth and higher renewal premiums)

P&C: $166MM, 8% (mainly from growth of Property line and international partners)

GROSS PREMIUMS WRITTEN


Geographic distribution of revenue remained relatively constant, with approximately 50% earned in Trinidad & other Caribbean

8

GEOGRAPHIC DISTRIBUTION OF REVENUE

Excludes realized and unrealized gains

2.82 , 53%

0.99 , 19%

1.41 , 26%

0.11 , 2%

2017 - $5.3 billion

3.02 , 54%

1.08 , 19%

1.39 , 25%

0.13 , 2%

2018 - $5.6 billion

Trinidad & other Caribbean Jamaica Dutch Caribbean Non Caribbean


ANAND PASCALPRESIDENT GUARDIAN LIFE OF THE CARIBBEAN

Life, Health and Pensions (LHP)


LIFE, HEALTH AND PENSION

GLOC(100%)

GLL(100%)

FATUMCURACAO

(100%)

FATUMARUBA(100%)

FATUM HEALTH(100%)

The leading life insurer in the Caribbean:

# 1 in Trinidad

700+ dedicated life sales agents

GLOC AM Best A- Excellent rating

# 2 in Jamaica


Fatum has approximately 50% of the Dutch Caribbean market

Sales primarily broker-driven


GL OECS(100%)

10

LIFE, HEALTH AND PENSIONS


278 301 305 299 283

58 59 58 68

70

20 22 21 30 38

356 382 384

397 391

-

50

100

150

200

250

300

350

400

450

2014 2015 2016 2017 2018

GLOC GLL FATUM

11

Slight decline from 2018 – 2%

Driven by a 5% decline in GLOC. Mainly from slower activity in 1st Half 2018. Strong end to 2018 hitting 95% of Q4 targets

Growth in FATUM and GLL. FATUM agency strategy working well. API almost doubled from 2016

$MM

ANNUALIZED PREMIUM INCOME


1,836 1,983 2,356

2,062 2,249

490 498

544

616 679 496

542

558 663

636 2,822

3,023

3,458 3,341

3,564

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2014 2015 2016 2017 2018

$MM

GLOC GLL FATUM

6% CAGR

LHP – GROSS PREMIUMS WRITTEN

12

GPW increased $223MM or 7%

Mainly due to strong growth in T&T and Jamaica

This is result of persistency improvements in both territories


LHP – REVENUE

13

Total Revenue increased 5% compared to 2017

Growth mainly from premium revenue

Investment income grew at a slower rate mainly due to lower reinvestment in long term issues in T&T 2,005 2,111

2,607 2,347 2,525

728 703

764 821

887 722

806

819 909

870 3,455

3,620

4,190 4,077

4,282

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2014 Restated 2015 2016 2017 2018

$MM

GLOC GLL FATUM

6% CAGR

Excludes realized and unrealized gains/losses


DEAN ROMANY

Property & Casualty (P&C)

PRESIDENT GUARDIAN GENERAL INSURANCE LIMITED


PROPERTY & CASUALTY

15

PROPERTY & CASUALTY

ROYALSTARASSURANCE

(26%)

FATUM GENERAL

GGI (OECS)(59%)

CURACAO(100%)

ARUBA(100%)

TRINIDAD(100%)

BARBADOS(100%)

BOOGAARD GROUP(100%)

GUARDIAN RE

(100%)THOMA(100%)

GGIL(100%)

GGIJL(100%)

An established and distinguished P&C Insurer, long recognized as the largest and strongest indigenous Caribbean Insurer

Profitably underwrites in every English-speaking Commonwealth country in the Caribbean and the Dutch Antilles

Market Leader in the following territories: Trinidad & Tobago; Jamaica; Dutch Antilles; Grenada; and overall Caribbean

Boogaard (brokerage) in the Dutch Antilles provides additional sources of fee income (together with Thoma)

Financial strength and consistently applied underwriting discipline are competitive advantages

Consistently delivers high profit margins

Successfully manages the underwriting cycles

Reputable claims service

Good geographic spread

Robust reinsurance program

Strong global network

“A-” Excellent rating reaffirmed by AM Best


P&C – GROSS PREMIUMS WRITTEN

16

GPW grew 8% over 2017 as premium rates hardened regionally and internationally

Growth mainly due to higher premiums and policies in Property across all territories and Motor in specific jurisdictions

1,387 1,316 1,072 1,076 1,191

431 457

534 605 686

297 294 353

388

370

75 62

58 63

51 2,190 2,129 2,017 2,132 2,298

-

500

1,000

1,500

2,000

2,500

2014 2015 2016 2017 2018

$MM

GGIL FATUM GGIJL GRE


COMBINED RATIO – PROPERTY & CASUALTY

17

Improved Combined Ratio reflecting P&C’s:

Strong technical underwriting discipline: 2018 net claims ratio of 43% (2017: 54%)

Distinctive reinsurance strategies

87.7%

85.1%

82.8%

90.9%

98.8%

87.7%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

2013 2014 2015 2016 2017 2018


BRENT FORDGROUP CHIEF INVESTMENT OFFICER / GROUP PRESIDENT ASSET MANAGEMENT

Asset Management (AM)


ASSET MANAGEMENT

19

ASSET MANAGEMENT

GGTL(100%)

GAMISL(100%)

GAM MUTUAL FUNDS

Lines of business

Registered with CBTT & TTSEC – offers Trust Services, Loans, Accounting & Administration Services

Investment Banking Business Line being developed

Registered with TTSEC - investment adviser, broker-dealer, underwriter

Manages mutual funds, private wealth, captive portfolios

Trades for Non-Discretionary Accounts

Offers 13 independent mutual funds covering all asset classes; AUM TT$1Bn


ASSETS UNDER MANAGEMENT

20

AUM in 2018 increased by 5% driven by mainly by Private Wealth and Captive Business

9.7 10.4

11.6

12.8 13.4

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2014 2015 2016 2017 2018

$Bn

8% CAGR


AM – GAM REVENUE & AUM MIX

21

31%

44%

24%

Captive Third Party Proprietary

Revenue Mix

79%

21%

Captive Third Party

AUM Mix

Third Party Business contributed the largest portion to revenue and represents 21% of AUM

Fees charged to Mutual Funds are included in Third Party above


AM – GAM REVENUE & PROFITS

58.9 59.5

74.3 79.8

89.5

20.7 19.0

25.5 25.5 29.0

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

2014 2015 2016 2017 2018

$MM

Revenue ($MM) PAT ($MM)

22

Revenue for 2018 was 12% higher than prior year

Profit after tax for 2018 was higher by 14% compared to 2017


INVESTMENT MIX

$1.5 , 7%

$9.4 , 46%

$2.4 , 12%

$3.1 , 15%

$2.0 , 10%

$2.1 , 10%

December 2018 - $20.5 billion

Investment properties Government securities Debentures & Corporate bonds

Equities Term Deposits Cash & Cash equivalents

Excludes Investment securities, cash and cash equivalents of mutual fund unit holders

$1.5 , 7%

$9.3 , 47%

$2.4 , 12%

$3.0 , 15%

$1.8 , 9%

$2.1 , 10%

December 2017 - $20.1 billion

23

Asset mix fairly steady from year end 2017

We continue to focus on shifting into more productive long-term investments


QUESTIONS

24

analyst briefing - guardian groupmyguardiangroup.com/uploads/announcements/brokers... ·...

Documents