Guardian Holdings profits up 20%

Guardian Holdings Limited (GHL) will be using its acquisition of Globe Insurance Company to seal its position as the top provider of general insurance in Jamaica.

“When combined with our existing Jamaican general insurance company, West Indies Alliance, we will occupy the number one position in the Jamaican commercial insurance market,” said Arthur Lok Jack, chairman of GHL in the financial report for the nine months to September 2012.

GHL acquired Globe in September at a cost of US$38 million, giving the company a 20 per cent share of the local general insurance market.

And according to GHL its Jamaican businesses, including Guardian Life and West Indies Alliance, account for some 23 per cent of group profits and 17 per cent of total assets.

For the nine-month period GHL reported net profits of TT$292.8 million, a 20 per cent growth over the TT$243.6 million it earned during the corresponding period last year.

While net premiums remained flat at TT$2.29 billion owing to a decrease in its Dutch Caribbean general insurance business, gross premiums grew by five per cent to TT$3.368 billion from TT$3.217 billion.

During the reporting period net income from investing activities declined by 14 per cent from TT$764 million to TT$658 million largely due to a non-cash provision of $20 million.

In addition, during the same period in 2011 GHL recorded gains of TT$72 million on the disposal of shares in Jubilee, a reinsurance outfit it had in the United Kingdom.

The non-cash provision relates to a development in Pointe Simon, Martinique where GHL is in a partnership to construct luxury condominiums and two commercial buildings and retail spaces for lease and sale.

Lok Jack said net income from insurance underwriting activities grew by 50 per cent to TT$364 million in comparison to TT$243 million over the similar period last year This has been attributed mainly to improved claims performance across business segments of life, health, pensions, property and casualty insurance.

Lok Jack reported that net profit of the asset management segment of the business grew by 41 per cent to TT$18 million year to date, compared to TT$13 million for the same period in 2011.

Assets under management increased to TT$8.6 billion, a five per cent increase from year-end 2011 and 8 per cent from the comparative period of September 2011.

GHL is listed on the Jamaica Stock Exchange and last traded at TT$278. It has on its balance sheet assets of TT$22 billion.

sabrina.gordon@gleanerjm.com