Analyst Briefing. Financial Results Year Ended 31st December March 2019

Transcription

1 ANALYST BRIEFING GUARDIAN HOLDINGS LIMITED 1 GUARDIAN DRIVE WESTMOORINGS TRINIDAD Analyst Briefing Financial Results Year Ended 31st December 2018 INS UR ANCE RETIREME NT INV E S T ME NT S 8 March 2019

2 RAVI TEWARI GROUP CHIEF EXECUTIVE OFFICER

3 CONSOLIDATED FINANCIAL HIGHLIGHTS Profit Before Tax FY 2018 $705MM FY 2017 $520MM $184MM, 35% TT$'MM Var $ Var % Reported Profit attributed to equity holders of the parent % Basic EPS $2.30 $ 1.75 $ % Profit attributable to equity shareholders increased $127MM, 31% over the prior period owing primarily to higher Net results from insurance activities, partially offset by a decline in Net realised and unrealised gains. This reduction of -$224MM were principally due to short-term price fluctuation on the Group s equity portfolios. The Group also experienced higher operating expenses arising out of a number of initiatives targeted to either a moderate level of increase revenue growth or reduce the operating cost in the future. 3

4 Consolidated Financial Highlights

5 SUMMARY CONSOLIDATED FINANCIALS Note 1 LHP increased $362MM mainly from organic growth initiatives and improved renewals P&C increased $98MM as it was spared major catastrophic events compared to 2017 Note 2 Substantially due to the decline of global equity markets in 2018 Note 3 Mainly higher investment income Note 1 Note 2 Note 3 TT$'MM Var $ Var % Net income from insurance activities % Net realised and unrealised gains (224) -86% Net income from other investing activities % Net income from brokerage activities % Net income from all activities 1,870 1, % Net impairment losses on financial assets (1) (6) 5 83% Operating expenses (1,046) (975) (71) -7% Finance charges (136) (129) (7) -5% Share of associate results (2) -8% Profit before tax % Taxation & other (169) (111) (58) -53% Profit for the year % Profit attributable to NCI (1) (3) 2 67% Profit attributable to equity holders of the parent % 5

6 SUMMARY CONSOLIDATED FINANCIALS Note 4 Mainly higher commission from Thoma RAB portfolio Note 5 Net impairment losses on financial assets of -$1MM 2018 (under IFRS 9) compared to -$6MM in 2017 (under IAS 39) Note 4 Note 5 Note 6 Note 6 Mainly driven by Group wide strategic initiatives 6

7 GROSS PREMIUMS WRITTEN GPW increased $389MM, 7% over 2017: $MM 6,000 LHP: $223MM, 7% (mainly organic growth and higher renewal premiums) 5,800 5,600 4% CAGR P&C: $166MM, 8% (mainly from growth of Property line and international partners) 5,400 5,200 5,000 4,800 4,600 5,011 5,152 5,475 5,473 5,861 4,

8 GEOGRAPHIC DISTRIBUTION OF REVENUE Geographic distribution of revenue remained relatively constant, with approximately 50% earned in Trinidad & other Caribbean $5.3 billion 1.41, 26% 0.11, 2% $5.6 billion 1.39, 25% 0.13, 2% 2.82, 53% 3.02, 54% 0.99, 19% 1.08, 19% Trinidad & other Caribbean Jamaica Dutch Caribbean Non Caribbean Excludes realized and unrealized gains 8

9 Life, Health and Pensions (LHP) ANAND PASCAL PRESIDENT GUARDIAN LIFE OF THE CARIBBEAN

10 LIFE, HEALTH AND PENSIONS LIFE, HEALTH AND PENSION GLOC GL OECS GLL FATUM CURACAO FATUM ARUBA The leading life insurer in the Caribbean: # 1 in Trinidad 700+ dedicated life sales agents GLOC AM Best A- Excellent rating # 2 in Jamaica 250+ dedicated life sales agents Fatum has approximately 50% of the Dutch Caribbean market Sales primarily broker-driven 100+ dedicated life sales agents FATUM HEALTH 10

11 ANNUALIZED PREMIUM INCOME Slight decline from % Driven by a 5% decline in GLOC. Mainly from slower activity in 1st Half Strong end to 2018 hitting 95% of Q4 targets Growth in FATUM and GLL. FATUM agency strategy working well. API almost doubled from 2016 $MM GLOC GLL FATUM 11

12 LHP GROSS PREMIUMS WRITTEN GPW increased $223MM or 7% Mainly due to strong growth in T&T and Jamaica This is result of persistency improvements in both territories $MM 4,000 3,500 3,000 2,500 2,000 1,500 1,000 3,023 2, ,836 1,983 6% CAGR 3, ,356 3, ,062 3, , GLOC GLL FATUM 12

13 LHP REVENUE Total Revenue increased 5% compared to 2017 Growth mainly from premium revenue $MM 4,500 4,000 3,500 3,000 2,500 3,455 Investment income grew at a slower rate mainly due to lower reinvestment in long 2,000 1,500 term issues in T&T 2,005 2,111 1, % CAGR 3, , ,607 4, ,347 4, , Restated GLOC GLL FATUM Excludes realized and unrealized gains/losses 13

14 Property & Casualty (P&C) DEAN ROMANY PRESIDENT GUARDIAN GENERAL INSURANCE LIMITED

15 PROPERTY & CASUALTY PROPERTY & CASUALTY GGIL TRINIDAD 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 GGIJL FATUM GENERAL GUARDIAN RE GGI (OECS) (59%) ROYALSTAR ASSURANCE (26%) BARBADOS CURACAO ARUBA THOMA BOOGAARD GROUP Boogaard (brokerage) 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 15

16 P&C GROSS PREMIUMS WRITTEN GPW grew 8% over 2017 as premium rates hardened regionally and internationally Growth mainly due to higher premiums and policies in Property across all territories and Motor in specific jurisdictions $MM 2,500 2,000 1,500 1, ,190 2,129 2,017 2, ,387 1,316 1,072 1,076 2, , GGIL FATUM GGIJL GRE 16

17 COMBINED RATIO PROPERTY & CASUALTY Improved Combined Ratio reflecting P&C s: Strong technical underwriting discipline: 2018 net claims ratio of 43% (2017: 54%) 105.0% 100.0% 95.0% 90.0% 90.9% 98.8% Distinctive reinsurance strategies 85.0% 80.0% 87.7% 85.1% 82.8% 87.7% 75.0% 70.0%

18 Asset Management (AM) BRENT FORD GROUP CHIEF INVESTMENT OFFICER / GROUP PRESIDENT ASSET MANAGEMENT

19 ASSET MANAGEMENT ASSET MANAGEMENT Lines of business GGTL GAMISL GAM MUTUAL FUNDS Registered with CBTT & TTSEC offers Trust Services, Loans, Accounting & Administration Services Investment Banking Business Line being developed 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$1Bn 19

20 ASSETS UNDER MANAGEMENT AUM in 2018 increased by 5% driven by mainly by Private Wealth and Captive Business $Bn % CAGR

21 AM GAM REVENUE & AUM MIX Revenue Mix Third Party Business contributed the largest portion to revenue and represents 21% of AUM 31% 44% 24% Captive Third Party Proprietary AUM Mix 79% 21% Captive Third Party Fees charged to Mutual Funds are included in Third Party above 21

22 AM GAM REVENUE & PROFITS Revenue for 2018 was 12% higher than prior year Profit after tax for 2018 was higher by 14% compared to 2017 $MM Revenue ($MM) PAT ($MM) 22

23 INVESTMENT MIX December $20.1 billion December $20.5 billion Asset mix fairly steady from year end 2017 $2.1, 10% $1.5, 7% $2.1, 10% $1.5, 7% We continue to focus on shifting into more productive long-term investments $3.0, 15% $1.8, 9% $9.3, 47% $2.0, 10% $3.1, 15% $9.4, 46% $2.4, 12% $2.4, 12% Investment properties Government securities Debentures & Corporate bonds Equities Term Deposits Cash & Cash equivalents Excludes Investment securities, cash and cash equivalents of mutual fund unit holders 23

24 QUESTIONS 24