Guardian Holdings Ltd has recorded an increase in profits of $91 million for the second quarter of 2021.
Chairman Patrick Hylton said the group had a solid performance in which its profit attributable to equity shares recorded $256 million over $165 million for the same period last year.
Its consolidated financial statement for the second quarter results to June 30, 2021 was published on Friday.
Earnings per share also increased to $1.10 versus 71 cents for the same period last year. Net income from investing activities stood at $770 million, a $454 million increase from $316 million in the last period.
This increase, Hylton said, was due to net fair value gains of $420 million, a gain of $111 million in this period, from a loss of $309 million in the last period, which was driven by net positive movements in the group’s regional equity portfolios.
“Your group continues to closely monitor the investment markets and rebalance portfolios as necessary. Net result from insurance activities was $417 million, a 24 per cent decrease from the $551 million reported in the corresponding period last year.
“This is largely driven by our Trinidad life, health and pension businesses that experienced an increase in policy lapses and a decrease in premium collection as a result of the lockdowns triggered by covid19. Gross premiums increased year-over-year by $210 million or six per cent and net premiums increased by $30 million or one per cent.”
He added that the life, health and pension businesses also recorded a four per cent growth in gross premiums from the Trinidad and Jamaican markets, which was supported by the integration of the life insurance and annuities portfolio acquired by Guardian Life Ltd at the end of the third 2020 from NCB Insurance Co Ltd.
Operations in the Netherlands and fronting arrangements, Hylton said were responsible for a growth in gross premiums by eight per cent in the property and casualty business segment.
“Operating expenses were $769 million, a 24 per cent increase over the $618 million reported in the corresponding period last year. The group is closely monitoring expenses as it continues to incur costs associated with the implementation of IFRS 17 (insurance contracts) as well as with our group wide transformation initiatives.
“I am happy to report that during the second quarter of 2021, the group cross-listed its shares on the Jamaica Stock Exchange and that the listing has been well received by Jamaican investors. The group continues its solid performance notwithstanding the ongoing covid19 pandemic.”
Hylton said as vaccination activities continued, the emergence of variants contributed to an uncertain path towards full economic recovery, and based on the overall performance an interim dividend of 18 cents was proposed.
Another release from the group’s corporate secretary Richard Avey on Friday said, “At a meeting held on July 29, the board of directors of GHL declared an interim dividend of 18 cents
