analyst briefingmyguardiangroup.com/uploads/presentations/brokers...gloc am best a- excellent rating...

++ INVESTMENTINSURANCE RETIREMENT =

I NSURANCE RETI REM ENT I NVESTMENTS

ANALYST BRIEFING

GUARDIAN HOLDINGS LIMITED

1 GUARDIAN DRIVE

WESTMOORINGS • TRINIDAD


Financial Results – Nine Months Ended 30th September 2017

Analyst Briefing

15 November 2017


RAVI TEWARIGROUP CHIEF EXECUTIVE OFFICER


3

CONSOLIDATED FINANCIAL HIGHLIGHTS

Q3 2017$254MM

Q3 2016$260MM

$6MM,2%

Group Profit

Profit attributable to equity shareholders decreased $6MM to $254MM (2%) over last year owing primarily to the impact of Hurricanes Irma and Maria offset by an improved investment performance

The Group has fully provided for potential claims from both hurricanes. Pre-tax losses: $100MM; Post-tax impact: $71MM

TT$'MM Q3/17 YTD Q3/16 YTD Var $ Var %

Reported

Profit to equity shareholders 254 260 (6) -2%

Basic EPS $ 1.10 $ 1.12 ($0.02) -2%


KERRI MAHARAJGROUP CHIEF FINANCIAL OFFICER

Consolidated Financial Highlights


SUMMARY CONSOLIDATED FINANCIALS

Note 1

Note 2

Note 1▪ LHP declined

$96MM mainly net unfavorable swing in actuarial reserve adjustments

▪ P&C declined $82MM mainly due to hurricane losses ($100MM)

Note 2Mainly equity gains in all jurisdictions

Note 3Expenses grew 3% mainly due to Group strategic initiatives

Note 3

TT$'MM Q3/17 YTD Q3/16 YTD Var $ Var %

Net income from insurance activities 197 375 (178) -47%

Net fair value gains 180 73 107 147%

Net income from other investing activities 709 658 51 8%

Net income from brokerage activities 12 1 11 1100%

Net income from all activities 1,098 1,107 (9) -1%

Operating expenses (689) (672) (17) -3%

Finance charges (96) (98) 2 2%

Share of associate results 17 10 7 70%

Profit before tax 330 347 (17) -5%

Taxation & other (75) (91) 16 18%

Profit from continuing operations 255 256 (1) 0%

Net gain on discontinued operations - 5 (5) -100%

Profit attributable to NCI (1) (1) - 0%

Profit to equity shareholders 254 260 (6) -2%


GROSS PREMIUMS WRITTEN

6

GPW increased $287MM, 7% over YTD Q3 2016:

▪ LHP +$253MM, 11%

▪ P&C +$34M, 2%

4% CAGR

4,911 5,011 5,152 5,475

3,862 4,149

0

1,000

2,000

3,000

4,000

5,000

6,000

2013 2014 2015 2016 YTD Q3/16 YTD Q3/17

$MM


GEOGRAPHIC DISTRIBUTION OF REVENUE

Geographic distribution continued to be stable, with approximately 50% earned in Trinidad & other Caribbean

Excludes realized and unrealized gains

1.91 , 53%

0.70 , 19%

0.95 , 26%

0.07 , 2%

YTD Q3/16 - $3.6 billion

2.04 , 51%

0.74 , 19%

1.04 , 26%

0.16 , 4%

YTD Q3/17 - $4 billion

7


ANAND PASCALPRESIDENT GUARDIAN LIFE OF THE CARIBBEAN

Life, Health and Pensions (LHP)


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

▪ Over 700 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

▪ Recently started a life sales force

GL OECS(100%)

9


ANNUALIZED PREMIUM INCOME

10

API increased 13% over 2016

Driven by 25% increase in GLOC

$MM

303 278 301 305

142177

71 58

59 58

41

44

120

116 108 118

118

118

494

452 468 481

301

339

-

100

200

300

400

500

600

2013 2014 2015 2016 YTD Q3/16 YTD Q3/17

GLOC GLL FATUM


1,762 1,836 1,983 2,356

1,402 1,534

557 490 498

544

396 450

476 496 542

558

462 529

2,795 2,822 3,023

3,458

2,260

2,513

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013 2014 2015 2016 YTD Q3/16 YTD Q3/17

$MM

GLOC GLL FATUM

LHP – GROSS PREMIUMS WRITTEN

11

7% CAGRGPW increased by $253MM, 11% over 2016:

▪ GLOC +9%:Driven by persistency improvement in annuity portfolio

▪ GLL +14%:Growth in Health portfolio


LHP – REVENUE

12

Revenue grew by 11% over 2016

Growth mainly driven by premium income

Also seeing uptick in investment income in GLOC

2,030 2,005 2,111 2,609

1,568 1,747

832 728 703

764

563 612

714 722

806

819

625 688

3,576 3,455

3,620

4,192

2,756

3,047

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2013 2014 Restated 2015 2016 YTD Q3/16 YTD Q3/17

$MM

GLOC GLL FATUM

10% CAGR

Excludes realized and unrealized gains/losses2013 was not restated for the changes in accounting policy: CPPM and elimination of VIF


RICHARD ESPINETEXECUTIVE DIRECTOR / GROUP PRESIDENT PROPERTY & CASUALTY

Property & Casualty (P&C)


PROPERTY & CASUALTY (P&C)

14

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) acquisition 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


HURRICANE IRMA AFFECTED ISLANDS

15

Largest Hurricane loss event in history

Affected an unprecedented number of islands


P&C – GROSS PREMIUMS WRITTEN

16

GPW of $1.6Bn increased compared to 2016 despite soft premium rates regionally and internationally

Growth mainly due to higher premiums in Property and Motor for both Fatum and GGIJL, offset by reductions on multinational accounts obtained through our global network partners

1,315 1,387 1,316 1,072

842 801

402 431 457

534

424 471

326 297 294

353

283 310

74 75 62

58

52 53

2,117 2,190 2,129

2,017

1,601 1,635

-

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 YTD Q3/16 YTD Q3/17

$MM

GGIL FATUM GGIJL GRE


COMBINED RATIO – PROPERTY & CASUALTY

17

Combined Ratio reflected Hurricane Net Losses of TT$100.3MM resulting in a Loss ratio of 61% for Q3 2017 versus 43% for Q3 2016:

▪ Excluding Hurricane losses the YTD net claims ratio was 44% (2016:43%), reflecting our strong technical underwriting discipline

▪ Reduced Expense ratio of 42% (2016: 43%) due to increased premiums

87.7%

85.1%

82.8%

90.9%

102.5%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

2013 2014 2015 2016 YTD Q3/17


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 & 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$1.1B


ASSETS UNDER MANAGEMENT

20

AUM for Q3 2017 increased by 7% for the year.

Growth seen across all segments (captive and third party)

9.3 9.7

10.4

11.6

12.4

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2013 2014 2015 2016 YTD Q3/17

$Bn

8% CAGR


AM – GAM REVENUE & PROFITS

Q3 2017 revenue was 2% higher than comparative 2016

Profit after tax was 14% lower than 2016 mainly due to:

▪ FX gains in 2016 not repeated similarly in 2017

▪ Higher tax rate

60.4 58.9 59.5

74.3

56.3 57.5

20.6 20.7 19.0

25.5 21.7

18.6

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2013 2014 2015 2016 YTD Q3/16 YTD Q3/17

$MM

Revenue ($MM) PAT ($MM)

21


INVESTMENT MIX

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

$1.3 , 7%

$8.7 , 43%

$2.4 , 12%

$2.8 , 14%

$2.0 , 10%

$2.8 , 14%

September 2017

Investment properties Government securities Debentures & Corporate bonds

Equities Term Deposits Cash & Cash equivalents

Excludes Financial assets, cash and cash equivalents of mutual fund unit holders

$1.3 , 7%

$8.5 , 46%

$2.3 , 12%

$2.3 , 13%

$2.2 , 12%

$1.7 , 10%

December 2016

22


QUESTIONS

23

analyst briefingmyguardiangroup.com/uploads/presentations/brokers...gloc am best a- excellent rating...

Documents