Analyst Briefing - Guardian Groupmyguardiangroup.com/uploads/presentations/Brokers... · 2017. 5....

++ INVESTMENTINSURANCE RETIREMENT =

I NSURANCE RETI REM ENT I NVESTMENTS

ANALYST BRIEFING

GUARDIAN HOLDINGS LIMITED

1 GUARDIAN DRIVE

WESTMOORINGS • TRINIDAD


Financial Results – Three Months Ended 31st March 2017

Analyst Briefing

5 May 2017


RAVI TEWARIGROUP CHIEF EXECUTIVE OFFICER


3

CONSOLIDATED FINANCIAL HIGHLIGHTS

Q1 2017$90MM

Q1 2016$62MM

$28MM,45%

Group Profit

Profit attributed to equity shareholders increased $28MM to $90MM (45%) over last year owing primarily to an improved investment performance

TT$'MM Q1/17 YTD Q1/16 YTD Var $ Var %

Reported

Profit to equity shareholders 90 62 28 45%

Basic EPS $0.39 $0.27 $0.12 44%


4

BUSINESS SEGMENTS

4

LIFE HEALTH AND PENSION

GLOC

(100%)

GLL

(100%)

FATUM LIFE (100%)

FATUM HEALTH (100%)

PROPERTY AND CASUALTY

GGIL

(100%)

GGIJL

(100%)

FATUM GENERAL

GUARDIAN RE

(100%)

GGI (OECS) (59%)

ROYALSTAR ASSURANCE

(26%)

TRINIDAD (100%)

BARBADOS (100%)

CURACAO (100%)

ARUBA (100%)

THOMA & KRUIT

(100%)

BOOGAARD GROUP (100%)

ASSET MANAGEMENT

GGTL

(100%)

GAMISL (100%)

GAM MUTUAL FUNDS

STRATEGIC ALTERNATIVE INVESTMENTS

RGM

(33%)

LAEVULOSE (100%)


5

ASPIRATION 2020

Project

Chariot


6

OUR STRATEGY TO ACHIEVE ASPIRATION 2020


KERRI MAHARAJGROUP CHIEF FINANCIAL OFFICER

Consolidated Financial Highlights


8

SUMMARY CONSOLIDATED FINANCIALS

Note 1

Note 2

Note 1 LHP increases in

Trinidad and Jamaica were offset by lower Dutch Caribbean

P&C continues to be challenged by persistent soft market rates

Note 2Mainly equity gains

Note 33% underlying increase

Note 3

TT$'MM Q1/17 YTD Q1/16 YTD Var $ Var %

Net income from insurance activities 103 105 (2) -2%

Net fair value gains 63 19 44 232%

Net income from other investing activities 215 213 2 1%

Net income from brokerage activities 5 4 1 25%

Net income from all activities 386 341 45 13%

Operating expenses (235) (216) (19) -9%

Finance charges (32) (33) 1 4%

Share of associate results 4 2 2 100%

Profit before tax 123 93 30 32%

Taxation & other (33) (31) (2) -6%

Profit from continuing operations 90 62 28 45%

Net loss on discontinued operations - (0) 0 100%

Profit to equity shareholders 90 62 28 45%


9

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

1,593 1,620

0

1,000

2,000

3,000

4,000

5,000

6,000

2013 2014 2015 2016 YTD Q1/16 YTD Q1/17

GROSS PREMIUMS WRITTEN

GPW increased $26MM, 2% over 2016:

LHP +$18MM

P&C +$8MM

4% CAGR

($MM)


10

GEOGRAPHIC DISTRIBUTION OF REVENUE

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

Excludes realized and unrealized gains


ANAND PASCALPRESIDENT GUARDIAN LIFE OF THE CARIBBEAN

Life, Health and Pensions (LHP)


12

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


13

303 278 301 305

44 51

71 58

59 58

14 9

120 116

108 118

114 119

494 452 468 481

172 179

-

100

200

300

400

500

600

2013 2014 2015 2016 YTD Q1/16 YTD Q1/17

($MM)

GLOC GLL FATUM

ANNUALIZED PREMIUM INCOME

API increased 4% over 2016 mainly in GLOC, partially offset by GLL


14

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

460 500

557 490 498

544

128 149

476 496 542

558

301 258

2,795 2,822 3,023

3,458

889 907

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013 2014 2015 2016 YTD Q1/16 YTD Q1/17

($MM)

GLOC GLL FATUM

LHP – GROSS PREMIUMS WRITTEN

7% CAGR

GPW increased by $18MM, 2% over 2016:

GLOC +9% GLL +17% Fatum Life -14%

Growth in GLL Health portfolio

Fatum Life decreased due to a change in Aruba policy payment mode from annual to monthly


15

2,030 2,154 2,005 2,111 2,609

520 568

832 747 728 703

764

179 201

714 732 722

806

819

300 253

3,576 3,633 3,455

3,620

4,192

999 1,022

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2013 2014 2014Restated

2015 2016 YTD Q1/16 YTD Q1/17

GLOC GLL FATUM

LHP – REVENUE

Revenue grew by 2% over 2016

Growth was evenly split between underwriting revenue and investing activities

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

10% CAGR($MM)


RICHARD ESPINETEXECUTIVE DIRECTOR / GROUP PRESIDENT PROPERTY & CASUALTY

Property & Casualty (P&C)


17

PROPERTY & CASUALTY (P&C)

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–broker acquisitions in the Dutch Antilles provides additional sources of fee income (together with Thoma & Kruit)

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

PROPERTY & CASUALTY

ROYALSTARASSURANCE

(26%)

FATUM GENERAL

GGI (OECS)(59%)

CURACAO(100%)

ARUBA(100%)

TRINIDAD(100%)

BARBADOS(100%)

BOOGAARD GROUP(100%)

THOMA& KRUIT (100%)

GGIL(100%)

GGIJL(100%)

GUARDIAN RE

(100%)


18

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

429 403

402 431 457

534

195 223

326 297 294

353

62 66

74 75 62

58

18 20

2,117 2,190 2,129

2,017

704 712

-

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 YTD Q1/16 YTD Q1/17

GGIL FATUM GGIJL GRE

P&C – GROSS PREMIUMS WRITTEN

GPW of $712MM reflected an overall increase compared to 2016

GGIL decrease was due mainly to:

Premium reductions on multinational accounts obtained through our global network partners

Fall in regional and international premium rates

($MM)


19

COMBINED RATIO PROPERTY & CASUALTY

Combined Ratio dropped below 90% in Q1 2017 reflecting P&C’s:

Strong technical underwriting discipline: Consistent YTD net claims ratio of 41% (similar to 2016:41%)

Increased operating expenses due to timing: Expense ratio of 44% (2016: 37%)

Distinctive reinsurance strategies

87.7%

85.1%

82.8%

90.9%89.2%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

2013 2014 2015 2016 YTD Q1/17


BRENT FORDGROUP CHIEF INVESTMENT OFFICER / GROUP PRESIDENT ASSET MANAGEMENT

Asset Management (AM)


21

ASSET MANAGEMENT

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


22

9.3 9.7

10.4

11.6 11.9

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2013 2014 2015 2016 YTD Q1/17

($Bn)

ASSETS UNDER MANAGEMENT

AUM for Q1 2017 increased by 2%

Growth seen mainly in Captive & Private Wealth segments

8% CAGR


23

AM – GAM REVENUE & PROFITS

2017 revenue was 2% lower then 2016

Profit after tax was 17% lower than 2016, mainly due to:

FX gains in 2016 not repeated thus far in 2017

Higher tax rate in 2017

60.4 58.9 59.5

74.3

18.0 17.7 20.6 20.7 19.0

25.5

7.2 6.0 -

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2013 2014 2015 2016 YTD Q1/16 YTD Q1/17

Revenue ($MM) PAT ($MM)

($MM)


24

INVESTMENT MIX

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

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

$1.3 , 7%

$8.8 , 47%

$2.3 , 12%

$2.5 , 13%

$2.1 , 11%

$1.9 , 10%

March 2017

$1.3 , 7%

$8.5 , 46%

$2.3 , 12%

$2.3 , 13%

$2.2 , 12%

$1.7 , 10%

December 2016


25

QUESTIONS

Analyst Briefing - Guardian Groupmyguardiangroup.com/uploads/presentations/Brokers... · 2017. 5....

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