Analyst Briefingmyguardiangroup.com/uploads/announcements/Brokers... · Note 4 Note 4 IFRS 9...

++ INVESTMENTINSURANCE RETIREMENT =

I NSURANCE RETI REM ENT I NVESTMENTS

ANALYST BRIEFING

GUARDIAN HOLDINGS LIMITED

1 GUARDIAN DRIVE

WESTMOORINGS • TRINIDAD


Financial Results – Year Ended 31st December 2019

Analyst Briefing

6 March 2020


RAVI TEWARIGROUP CHIEF EXECUTIVE OFFICER


3

CONSOLIDATED FINANCIAL HIGHLIGHTS

2019$855m

2018$705m

$150m,21%

Profit Before Tax

Profit attributable to equity shareholders increased $158m or 30% over the prior period owing primarily to a strong Investment performance driven by a positive movement on unrealised gains.

TT$'MM 2019 2018 Var $ Var %

Reported

Profit to equity holders of the company 692 534 158 30%

Basic EPS $2.98 $2.30 $0.68 30%


PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

335 396 407

534

692

-

100

200

300

400

500

600

700

800

2015 2016 2017 2018 2019

$MM

20% CAGR

Profit attributable to equity holders of the parent increased $158m or 30% over 2018.


DAVID MARAJGROUP CHIEF FINANCIAL OFFICER

Consolidated Financial Highlights


6

Note 2

Note 1▪ LHP increased $16MM

mainly from improved persistency, more efficient processes and growth in life and pensions.

▪ P&C improved $44MM primarily from organic and inorganic growth.

Note 2 Substantially due to appreciation in the equity markets in 2019.

Note 3 Mainly resulted from rebalancing of portfolios.

Note 1

Note 3

SUMMARY CONSOLIDATED FINANCIALS

Certain restatements and reclassifications have been made to prior period information, which had no impact on the Group’s equity or statement of comprehensive income. All references, variances or analysis contained on this presentation relating to 2018 are based on the restated balances.

TT$'MM 2019 2018 Var $ Var %

Net income from insurance activities 959 899 60 7%

Net realised and unrealised gains 395 123 272 221%

Net income from other investing activities 975 890 85 10%

Fee and commission income from brokerage activities 117 114 3 3%

Net income from all activities 2,446 2,026 420 21%

Net impairment losses on financial assets (88) (1) (87) 8700%

Operating expenses (1,375) (1,202) (173) 14%

Finance charges (146) (135) (11) 8%

Share of associate results 18 17 1 6%

Profit before tax 855 705 150 21%

Taxation & other (160) (170) 10 -6%

Profit for the year 695 535 160 30%

Profit attributable to NCI (3) (1) (2) 200%



Note 4

Note 4▪ IFRS 9 provisioning.

Note 5 Driven by internal reorganization, technological advancements, expanded operations and IFRS 17 implementation cost.

Note 6 Includes imputed interest expenses as prescribed by IFRS 16.

Note 6

Note 5

SUMMARY CONSOLIDATED FINANCIALS

Certain restatements and reclassifications have been made to prior period information, which had no impact on the Group’s equity or statement of comprehensive income. All references, variances or analysis contained on this presentation relating to 2018 are based on the restated balances.

TT$'MM 2019 2018 Var $ Var %

Net income from insurance activities 959 899 60 7%

Net realised and unrealised gains 395 123 272 221%

Net income from other investing activities 975 890 85 10%

Fee and commission income from brokerage activities 117 114 3 3%

Net income from all activities 2,446 2,026 420 21%

Net impairment losses on financial assets (88) (1) (87) 8700%

Operating expenses (1,375) (1,202) (173) 14%

Finance charges (146) (135) (11) 8%

Share of associate results 18 17 1 6%

Profit before tax 855 705 150 21%

Taxation & other (160) (170) 10 -6%

Profit for the year 695 535 160 30%

Profit attributable to NCI (3) (1) (2) 200%



5,152 5,475 5,473

5,861 6,367

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2015 2016 2017 2018 2019

$MM

5% CAGR

8

GPW increased $505m or 9% over 2018:

▪ LHP: $170m or 5% mainly from GLOC;

▪ P&C: $335m or 15% (mainly from GGIL and Dutch Antilles).

GROSS PREMIUMS WRITTEN


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

9

GEOGRAPHIC DISTRIBUTION OF REVENUE

Excludes realized and unrealized gains / losses

3.05 , 54%

1.10 , 20%

1.35 , 24%

0.13 , 2%

2018 Restated - $5.6 billion

3.34 , 55%

1.15 , 19%

1.44 , 24%

0.16 , 2%

2019 - $6.1 billion

Trinidad & other Caribbean Jamaica Dutch Caribbean Non Caribbean


ANAND PASCALPRESIDENT GUARDIAN LIFE OF THE CARIBBEAN

Life, Health and Pensions (LHP)


LIFE, HEALTH AND

PENSIONS

GLOC(100%)

GLL(100%)

FATUMCURACAO

(100%)

FATUMARUBA(100%)

FATUM HEALTH(100%)

The leading life insurer in the Caribbean:

➢ # 1 in Trinidad

▪ Over 650 dedicated life sales agents

▪ GLOC AM Best A- Excellent rating

➢ # 2 in Jamaica

▪ Over 250 dedicated life sales agents

➢ Fatum has approximately 50% of the Dutch Caribbean market

▪ Sales primarily broker-driven

▪ 100 dedicated life sales agents

GL OECS(100%)

11

LIFE, HEALTH AND PENSIONS


301 305 299 283

357

59 58 68 70

9422 21 30 38

29

382 384 397 391

480

-

100

200

300

400

500

600

2015 2016 2017 2018 2019

GLOC GLL FATUM

12

API increased 23% over 2018.

26% growth in GLOC34% growth in GLL

Driven mainly by productivity improvements – Both supporting technology and performance management

$MM

ANNUALIZED PREMIUM INCOME


1,983 2,356

2,062 2,249 2,378

498

544

616 679

710 542

558 663

636 646

3,023

3,458 3,341 3,564

3,734

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2015 2016 2017 2018 2019

$MM

GLOC GLL FATUM

5% CAGR

LHP – GROSS PREMIUMS WRITTEN

13

GPW increased $170m; 5% when compared 2018.

Persistency remains strong on the Life and Pensions business.

There has been some reduction in the Health Portfolio which offset Life and Pensions growth.


LHP – REVENUE

14

Total Revenue increased 6% when compared to 2018.

Most of the growth is fueled by premium income.

Investment income has also grown due to improved portfolio durations.

2,111 2,607

2,347 2,543 2,710

703

764 821

903 941 806

819 909

869 904

3,620

4,190 4,077 4,315

4,555

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2015 2016 2017 2018 Restated 2019

$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

16

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

17

GPW increased $335m; 15% when compared to 2018.

• Property premium rates improved in those territories affected by recent hurricanes;

• Major new business opportunities were secured.

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

1,413

457

534 605 686

796 294

353 388

370

390 62

58 63

51

34 2,129 2,017

2,132 2,298

2,633

-

500

1,000

1,500

2,000

2,500

3,000

2015 2016 2017 2018 2019

$MM

GGIL FATUM GGIJL GRE

5% CAGR


COMBINED RATIO – PROPERTY & CASUALTY

18

Combined Ratio in 2019 remained in a healthy position at 84.5% in spite of Hurricane Dorian. 4% improvement for commission and expense ratios.

P&C strategy:

▪ Strong technical underwriting discipline;

▪ Lower operating expense ratio;

▪ Distinctive reinsurance strategies.

82.8%

90.9%

98.8%

83.7% 84.5%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

2015 2016 2017 2018 Restated 2019


BRENT FORDGROUP CHIEF INVESTMENT OFFICER / GROUP PRESIDENT ASSET MANAGEMENT

Asset Management (AM)


ASSET MANAGEMENT

20

ASSET MANAGEMENT

GGTL(100%)

GAMISL(100%)

GAM MUTUAL FUNDS

Lines of business

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

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$1.2Bn


ASSETS UNDER MANAGEMENT

21

13% increase in AUM in 2019 over 2018, driven by Captive and Private Wealth Business.

10.4

11.6

12.8 13.4

15.1

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2015 2016 2017 2018 2019

$Bn

10% CAGR


AM – GAM REVENUE & AUM MIX

22

Third Party Business contributes largest portion to revenue and represents 23% of AUM

30%

41%

29%

Captive Third Party Proprietary

Revenue Mix

77%

23%

Captive Third Party

AUM Mix


AM – GAM REVENUE & PROFITS

Revenue for 2019 was 12% higher than prior year.

Profit after tax for 2019 was 31% higher than prior year.

The above were due to higher AUM and trading gains.

59.5

74.3 79.8

91.9

102.9

19.0 25.5 25.5

29.0

38.0

-

20.0

40.0

60.0

80.0

100.0

120.0

2015 2016 2017 2018 Restated 2019

$MM

Revenue ($MM) PAT ($MM)

23


INVESTMENT MIX

Asset mix relatively unchanged from year end 2018.

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

$1.6 , 7%

$10.9 , 47%

$2.9 , 13%

$3.2 , 14%

$2.0 , 9%

$2.4 , 10%

2019- $23.1 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%

$9.8 , 46%

$2.4 , 12%

$3.4 , 16%

$2.0 , 9%

$2.1 , 10%

2018 Restated - $21.1 billion

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QUESTIONS

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