Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
++ INVESTMENTINSURANCE RETIREMENT =
I NSURANCE RETI REM ENT I NVESTMENTS
ANALYST BRIEFING
GUARDIAN HOLDINGS LIMITED
1 GUARDIAN DRIVE
WESTMOORINGS • TRINIDAD
++ INVESTMENTINSURANCE RETIREMENT =
Financial Results – Three Months Ended 31st March 2017
Analyst Briefing
5 May 2017
++ INVESTMENTINSURANCE RETIREMENT =
RAVI TEWARIGROUP CHIEF EXECUTIVE OFFICER
++ INVESTMENTINSURANCE RETIREMENT =
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 $0.12 44%
++ INVESTMENTINSURANCE RETIREMENT =
4
BUSINESS SEGMENTS
4
LIFE HEALTH AND PENSION
GLOC
(100%)
GLL
(100%)
FATUM LIFE (100%)
FATUM HEALTH (100%)
PROPERTY AND CASUALTY
GGIL
(100%)
GGIJL
(100%)
FATUM GENERAL
GUARDIAN RE
(100%)
GGI (OECS) (59%)
ROYALSTAR ASSURANCE
(26%)
TRINIDAD (100%)
BARBADOS (100%)
CURACAO (100%)
ARUBA (100%)
THOMA & KRUIT
(100%)
BOOGAARD GROUP (100%)
ASSET MANAGEMENT
GGTL
(100%)
GAMISL (100%)
GAM MUTUAL FUNDS
STRATEGIC ALTERNATIVE INVESTMENTS
RGM
(33%)
LAEVULOSE (100%)
++ INVESTMENTINSURANCE RETIREMENT =
5
ASPIRATION 2020
Project
Chariot
++ INVESTMENTINSURANCE RETIREMENT =
6
OUR STRATEGY TO ACHIEVE ASPIRATION 2020
++ INVESTMENTINSURANCE RETIREMENT =
KERRI MAHARAJGROUP CHIEF FINANCIAL OFFICER
Consolidated Financial Highlights
++ INVESTMENTINSURANCE RETIREMENT =
8
SUMMARY CONSOLIDATED FINANCIALS
Note 1
Note 2
Note 1 LHP increases in
Trinidad and Jamaica were offset by lower Dutch Caribbean
P&C continues to be challenged by persistent soft market rates
Note 2Mainly equity gains
Note 33% underlying increase
Note 3
TT$'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%
++ INVESTMENTINSURANCE RETIREMENT =
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)
++ INVESTMENTINSURANCE RETIREMENT =
10
GEOGRAPHIC DISTRIBUTION OF REVENUE
Geographic distribution continues to be stable, with approximately 50% earned in Trinidad & other Caribbean
Excludes realized and unrealized gains
++ INVESTMENTINSURANCE RETIREMENT =
ANAND PASCALPRESIDENT GUARDIAN LIFE OF THE CARIBBEAN
Life, Health and Pensions (LHP)
++ INVESTMENTINSURANCE RETIREMENT =
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
++ INVESTMENTINSURANCE RETIREMENT =
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
($MM)
GLOC GLL FATUM
ANNUALIZED PREMIUM INCOME
API increased 4% over 2016 mainly in GLOC, partially offset by GLL
++ INVESTMENTINSURANCE RETIREMENT =
14
1,762 1,836 1,983 2,356
460 500
557 490 498
544
128 149
476 496 542
558
301 258
2,795 2,822 3,023
3,458
889 907
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013 2014 2015 2016 YTD Q1/16 YTD Q1/17
($MM)
GLOC GLL FATUM
LHP – GROSS PREMIUMS WRITTEN
7% CAGR
GPW increased by $18MM, 2% over 2016:
GLOC +9% GLL +17% Fatum Life -14%
Growth in GLL Health portfolio
Fatum Life decreased due to a change in Aruba policy payment mode from annual to monthly
++ INVESTMENTINSURANCE RETIREMENT =
15
2,030 2,154 2,005 2,111 2,609
520 568
832 747 728 703
764
179 201
714 732 722
806
819
300 253
3,576 3,633 3,455
3,620
4,192
999 1,022
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2013 2014 2014Restated
2015 2016 YTD Q1/16 YTD Q1/17
GLOC GLL FATUM
LHP – REVENUE
Revenue grew by 2% over 2016
Growth was evenly split between underwriting revenue and investing activities
Excludes realized and unrealized gains/losses2013 was not restated for the changes in accounting policy: CPPM and elimination of VIF
10% CAGR($MM)
++ INVESTMENTINSURANCE RETIREMENT =
RICHARD ESPINETEXECUTIVE DIRECTOR / GROUP PRESIDENT PROPERTY & CASUALTY
Property & Casualty (P&C)
++ INVESTMENTINSURANCE RETIREMENT =
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%)
++ INVESTMENTINSURANCE RETIREMENT =
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)
++ INVESTMENTINSURANCE RETIREMENT =
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
++ INVESTMENTINSURANCE RETIREMENT =
BRENT FORDGROUP CHIEF INVESTMENT OFFICER / GROUP PRESIDENT ASSET MANAGEMENT
Asset Management (AM)
++ INVESTMENTINSURANCE RETIREMENT =
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$1.1B
++ INVESTMENTINSURANCE RETIREMENT =
22
9.3 9.7
10.4
11.6 11.9
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2013 2014 2015 2016 YTD Q1/17
($Bn)
ASSETS UNDER MANAGEMENT
AUM for Q1 2017 increased by 2%
Growth seen mainly in Captive & Private Wealth segments
8% CAGR
++ INVESTMENTINSURANCE RETIREMENT =
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)
++ INVESTMENTINSURANCE RETIREMENT =
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
++ INVESTMENTINSURANCE RETIREMENT =
25
QUESTIONS