Analysts Briefing. Financial Results Year ended December March 2015 I N S U R AN C E R E T I R E M E N T I N V E S T M E N T S

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1 ANALYST BRIEFING GUARDIAN HOLDINGS LIMITED 1 GUARDIAN DRIVE, WESTMOORINGS TRINIDAD Analysts Briefing INSURANCE + RETIREMENT + INVESTMENT Financial Results Year ended December 2014 I N S U R AN C E R E T I R E M E N T I N V E S T M E N T S 13 March 2015

2 RAVI TEWARI GROUP CHIEF EXECUTIVE OFFICER INSURANCE + RETIREMENT + INVESTMENT

3 CONSOLIDATED FINANCIAL HIGHLIGHTS $355MM INCREASE IN REPORTED PROFIT TO EQUITY- HOLDERS 12% INCREASE IN ADJUSTED PROFIT TO EQUITY- HOLDERS YTD Dec 2014 (TT$MM) YTD Dec 2013 (TT$MM) Adjusting for the non-repeating NDX and Pointe Simon losses, the 12- month profits to equity shareholders of $401MM increased $44MM, 12% compared to 2013 Var $ Var % Reported Profit for the year % Basic EPS $ 1.73 $ 0.20 $ % Adjusted for NDX and Pointe Simon Profit for the year % Basic EPS $ 1.73 $ 1.54 $ % 3

4 BUSINESS SEGMENTS LIFE HEALTH AND PENSION CARIBBEAN PROPERTY & CASUALTY INTERNATIONAL PROPERTY & CASUALTY ASSET MANAGEMENT STRATEGIC ALTERNATIVE INVESTMENTS GLOC GGIL GUARDIAN RE GAM RGM (33%) GLL TNI (54%) CURACAO LAEVULOSE FATUM LIFE CURACAO ROYALSTAR ASSURANCE (26%) ARUBA ECGPC (15%) FATUM LIFE ARUBA FATUM HEALTH GGIJL (WIA & GLOBE) FATUM GENERAL RSA ANTILLES THOMA EXPLOITATIE KRUIT BOOGAARD 4

5 DIVERSIFICATION OF BUSINESS UNITS PRODUCES CONSISTENT RETURNS AND GROWTH We have the premiere portfolio of non-bank financial institutions in the Caribbean Number one market position in Trinidad and Tobago Either number one or number two market position in all other markets Diversified by line of business: life, health, pensions; general insurance; and asset management Judiciously diversified by country Diversified investment portfolio

6 MERGERS AND ACQUISITIONS Kruit In January 2014, the Group acquired 100% of the shares of Kruit en Venema Assuradeuren B.V. through Fatum Holdings N.V. Kruit is an insurance brokerage firm (Consideration EUR 2MM). This has now successfully been integrated into our operations. Boogaard Group In February 2015, the Group signed a Share Purchase Agreement for the acquisition of Boogaard Group, a Dutch Caribbean insurance broker. Final approval from the respective Central Banks is expected before the end of the second quarter of 2015 (Consideration ANG 22MM) 6

7 POINTE SIMON ON COMMERCIALLY VIABLE FOOTING Condo Block Sold 35 of 45 units at prices consistent with valuation. Utilization of French tax incentive to facilitate sales and improve returns. Remaining units expected to be sold by year end. Tower Block 18 stories tall Leases on 2 stories signed. Lease on 5 stories to be signed by end of March. Active discussions on leases for further 8 floors. We expect near full occupancy by year-end. Hotel Block Sale closed for 21.2 m at 1.1 m profit. Vendor financing for 13.9 m. Will maintain 24% equity in hotel. Opening in Q under one of 2 major brands. Retail Space Demand is very strong from major retail brands. We expect full occupancy coincident with opening of hotel. 7

8 SYSTEMATIC DEPLOYMENT OF STRATEGY Drive strong organic sales Growth by acquisition Operational efficiency Build scalable, centralized group infrastructure 8

9 Consolidated Financial Highlights KERRI MAHARAJ GROUP CHIEF FINANCIAL OFFICER

10 SUMMARY CONSOLIDATED FINANCIALS Note 1 6% decline due to adverse claims experience (health & general insurance) and actuarial reserve strengthening in some annuity portfolios Note 2 $55MM decrease mainly due to lower investment and foreign exchange income Note 1 Note 2 TT$'MM YTD Dec 2014 YTD Dec 2013 Var $ Var % Net income from insurance activities (35) -6% Realised loss on NDX - (30) % Net fair value gains/(losses) 63 (27) % Net income from other investing activities (54) -6% Net income from all activities 1,469 1, % Fair value adjustment on Pointe Simon - (457) % Net income from all activities 1, % 10

11 SUMMARY CONSOLIDATED FINANCIALS (CONTINUED) TT$'MM YTD Dec 2014 YTD Dec 2013 Var $ Var % Operating expenses (905) (918) 13 1% Finance charges (130) (127) (3) -2% Share of associate results (7) -24% Taxation (91) (102) 11 11% Amount attributable to par. policyholders (2) (17) 15 88% Profit from continuing operations 363 (154) % Net gain on discontinued operations % Loss attributable to NCI (163) -93% Profit to equity shareholders % 11

12 GROSS PREMIUMS WRITTEN GPW ($million) 2014 GPW growth was dampened by two factors: (i) One-off bulk annuity purchases in 2013 (GLL) (ii) Shift from low margin investment products to protection products (GLOC) 6,000 5,000 4,000 3,000 2,000 1, % CAGR 4,911 5,011 4,365 4,007 3, Excluding the impact from the preceding factors, organic growth across all subsidiaries ranged from 4% to 6%. 12

13 GEOGRAPHIC DISTRIBUTION OF REVENUE Geographic distribution continues to be stable, with approximately 55% earned in Trinidad and Tobago Excludes realized and unrealized gains 13

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

15 LIFE, HEALTH AND PENSION INSURANCE + RETIREMENT + INVESTMENT LIFE, HEALTH AND PENSIONS (LHP) GLOC GLL FATUM LIFE CURACAO FATUM LIFE ARUBA Leading market shares: # 1 In Trinidad Over 600 dedicated life sales agents GLOC AM Best A- Excellent rating recently reaffirmed # 2 In Jamaica Over 300 dedicated life sales agents Fatum has approximately 50% of the Dutch Caribbean market Sales primarily broker-driven FATUM HEALTH 15

16 ANNUALIZED PREMIUM INCOME An overall 8.5% decline vs Settled API ($million) A self-initiated change in product mix accounted for the 8.2% reduction in GLOC vs In addition 2014 was not a convention year The depreciation of the J$ currency caused most of the GLL decline GLOC GLL FATUM TOTAL 16

17 LHP GROSS PREMIUMS WRITTEN (GPW) GPW ($million) GLOC and FATUM each recorded 4% GPW growth The decline in GLL is driven mainly by the approximately 10% depreciation in J$ 3,000 2,500 2,000 1,500 1, , ,246 CAGR 6% 2,529 2, ,347 1,427 2,794 2, ,762 1, GLOC GLL FATUM 17

18 LHP REVENUE Revenue ($million) Revenue is largely driven by premiums Investment income continues to be pressured by the low interest rate environment, especially in Trinidad 4,000 3,500 3,000 2,500 2,000 1,500 1, CAGR 5% 2,961 3, ,495 1,589 3, ,737 3,576 3, ,030 2, GLOC GLL FATUM Excludes realized and unrealized gains/losses 18

19 Caribbean Property & Casualty (CPC) RICHARD ESPINET EXECUTIVE DIRECTOR / GROUP PRESIDENT CARIBBEAN PROPERTY & CASUALTY

20 CARIBBEAN PROPERTY & CASUALTY INSURANCE + RETIREMENT + INVESTMENT CARIBBEAN PROPERTY & CASUALTY (CPC) GGIL GGIJL (WIA & GLOBE) FATUM GENERAL THOMA EXPLOITATIE TRINIDAD BARBADOS CURACAO ARUBA RSA ANTILLES An established and distinguished Caribbean Property & Casualty Insurer, long recognized as the strongest and largest 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 Overall Caribbean Thoma & Kruit provide a stable source of fee income Boogaard- proposed new broker acquisition in the Dutch Antilles will be an additional source of fee income Financial strength and consistently applied underwriting discipline are competitive advantages TNI (54%) ROYALSTAR ASSURANCE (26%) BOOGAARD GROUP KRUIT EN VENEMA ASSURADEUREN Consistently delivers high profit margins Successfully manages the underwriting cycles Reputable claims service Good geographic spread Robust reinsurance program Strong global network Compliant with the revised insurance act before the T&T parliament 20

21 CPC GROSS PREMIUMS WRITTEN GPW of $2.1Bn grew by over 3.6%, an increase of $74MM over the comparative GPW at the end of 2013, and is reflective of the results in the following entities:- GGIL s GPW of $1.4B grew by $73MM (5.6%) mainly through business from our global network partners Fatum s GPW of $431M increased by $30MM (7.5%) mainly through Dutchco, and GGIJL s GPW of $297 declined by $29MM (8.9%) reflecting the loss of two large accounts to the international market 2,500 2,000 1,500 1, , , GPW ($million) 14% CAGR 1,761 2,115 2, ,266 1,314 1,387 1, GGIL FATUM GGIJL 21

22 COMBINED RATIO - CARIBBEAN PROPERTY & CASUALTY The improved Combined Ratio of 85.6% from 87.5% over the comparative 2013 period for the Caribbean P&C continues to be consistently below 90% over the last 5 years, and is reflective of the P&C Group successfully combining strong technical underwriting discipline resulting in a net claims ratio of 40.7% Operating expense discipline with an expense ratio of 44.9%; a reduction from the 49.2% in 2013, and its distinctive reinsurance strategies 22

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

24 ASSET MANAGEMENT Acts as investment manager for the group ASSET MANAGEMENT GAM Offers investment opportunities to retail and institutional market 13 independent mutual funds covering all asset classes Financial advisory services to high net worth individuals Discretionary Private Wealth Service Non-Discretionary Trading Accounts client directed trades Split of Asset Management and Trustee Companies Guardian Group Trust Limited - CBTT Guardian Asset Management Limited - SEC 24

25 ASSETS UNDER MANAGEMENT (TT$Bn) Assets under Management show an increase of 4.3% in Captive Funds 5% NDS Funds 26% % CAGR * GAM plus GAM Mutual Funds 25

26 AM GAM REVENUE & PROFITS Revenue Mix AUM Mix 83% 57% 34% 9% 17% Captive Third Party Proprietary Captive Third Party Third Party Business contributes largest portion to revenue, represents 17% of AUM 26

27 INVESTMENT MIX Group s investment mix shows no major changes; more cash and deposits mainly due to lack of new issues coupled with net premium income growth 27

28 QUESTIONS 28