Analyst Briefing Financial Results

Transcription

1 Analyst Briefing Financial Results For The Half Year Ended 30 June, Guardian Drive, Westmoorings 8 th August, 2014

2 GROUP CHIEF EXECUTIVE OFFICER 2

3 CONSOLIDATED FINANCIAL HIGHLIGHTS YTD June 2014 (TT$MM) YTD June 2013 (TT$MM) Var $ Var % Reported Profit to equity shareholders % Basic EPS $ 0.79 $ 0.46 $ % Discontinued Net gain / (loss) 12 (2) % Continuing Profit to equity shareholders % Basic EPS $ 0.74 $ 0.47 $ % Q2/2014 profits to equity shareholders of $183MM increased $78MM, 72% compared to Q2/2013 3

4 SEGMENTS LIFE HEALTH AND PENSION CARIBBEAN PROPERTY & CASUALTY INTERNATIONAL PROPERTY & CASUALTY ASSET MANAGEMENT STRATEGIC ALTERNATIVE INVESTMENTS GLOC GGIL GUARDIAN RE GAM RGM (33%) GLL FATUM LIFE CURACAO FATUM LIFE ARUBA FATUM HEALTH GGIJL (WIA & GLOBE) FATUM GENERAL THOMA EXPLOITATIE KRUIT EN VENEMA ASSURADEUREN CURACAO ARUBA RSA ANTILLES LAEVULOSE (79%) ECGPC (15%) TNI (54%) ROYALSTAR ASSURANCE (26%) 4

5 SYSTEMATIC DEPLOYMENT OF STRATEGY Drive strong organic sales Growth by acquisition Operational efficiency Build scalable, centralized group infrastructure 5

6 POINTE SIMON DESCRIPTION Condo Block 7 stories tall 45 2 & 3 bedroom units 1 penthouse unit Retail space on ground floor for health club & spa 23% 6,577 sq m of condos & 951 sq m of retail space Tower Block 17% 25% 18 stories tall 14,945 sq m of rentable space Part of ground floor to be rented to a Starbucks Other space to rent as office space Hotel Block 8 stories tall Ground floor is all retail First floor comprises hotel lobby and hotel offices Other floors split between hotel and office 5,230 sq m of hotel, 2,067 sq m of office, 1,985 sq m of retail Courtyard Open space with 500 sq m of retail 6

7 POINTE SIMON STATUS Construction of condos and office tower is substantially complete and will be finished by the end of Q3. About to commence outfitting of hotel Focus now turns to commercializing the office tower 23% Have closed a number of small leases. Discussion on a 25% number 17% of large leases are at an advanced stage Demand for retail space is strong. We expect to start closing leases from September We anticipate cash returning to the Group by the end of the year The level of the write-down reflects current rental rates and economic conditions and is at a level that allows us to market the entire development 7

8 GROUP CHIEF FINANCIAL OFFICER 8

9 SUMMARY CONSOLIDATED FINANCIALS YTD June 2014 (TT$MM) YTD June 2013 (TT$MM) Var $ Var % Net income from insurance activities % Realised loss on NDX - (31) % Net fair value gains/(losses) 29 (48) % Net income from other investing activities (42) -9% Net income from all activities % Mainly lower investment income (TT$31MM) and lower Other Income (timing) Operating expenses (463) (427) (36) 8% Finance charges (64) (63) (1) 2% Share of associate results % Taxation & other (37) (43) 6-14% Insurance businesses up approx 3%. Remainder from Pointe Simon and one-off costs (projects etc.) Profit from continuing operations % Net gain/(loss) on discontinued operations 12 (2) % Loss attributable to NCI 9-9 0% Profit to equity shareholders % 9

10 FIVE-YEAR HISTORY Gross Premiums Written ($million) 6,000 5,000 11% CAGR 4,000 3,000 2,000 1,000 3,583 4,007 4,365 4,911 2,777 3, YTD June 2013 YTD June 2014 Excludes Zenith & Lloyds Consistent growth despite soft economic conditions in our markets Q2/2014 vs Q2/2013 shows a +$354MM, 13% growth in both insurance segments 10

11 GEOGRAPHIC DISTRIBUTION OF REVENUE YTD June $2.4 billion YTD June $2.5 billion Trinidad & other Caribbean 0.06, 3% Trinidad & other Caribbean 0.06, 2% Jamaica Dutch Caribbean 0.59, 25% 0.53, 22% 1.19, 50% Jamaica Dutch Caribbean 0.63, 26% 0.46, 19% 1.30, 53% Non Caribbean Non Caribbean Excludes realised and unrealised gains/losses Geographic distribution continues to be stable, with approximately 50% earned in Trinidad and Tobago 11

12 SEGMENT INFORMATION 12

13 ANAND PASCAL President Guardian Life of the Caribbean Limited 13

14 LIFE, HEALTH & PENSION (LHP) LIFE, HEALTH AND PENSION GLOC GLL FATUM LIFE CURACAO 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 LIFE ARUBA FATUM HEALTH 14

15 LHP ANNUALIZED PREMIUM INCOME (API) Settled API ($million) YTD June 2013 YTD June 2014 GLOC GLL FATUM GLOC s momentum from 2013 continued in Q2 resulting in a 14% growth over the PY quarter GLL and Fatum remained relatively flat over PY. The depreciation of the J$ currency caused most of the GLL decline. 15

16 LHP GROSS PREMIUMS WRITTEN (GPW) GPW ($million) 3,000 2,500 2,000 1,500 1, ,241 8% CAGR 2,529 2, ,246 1,347 1,427 2, ,762 1, , , YTD June 2013 YTD June 2014 GLOC GLL FATUM Growth in the LHP continues to be driven in Trinidad by GLOC The 12% growth over PY almost entirely due to new sales and retention in Trinidad 16

17 LHP REVENUE 4,000 3,500 3,000 2,500 2,000 1,500 1, Revenue ($million) 6% CAGR 3,571 3,413 2,961 3, ,780 1, ,025 1,495 1,589 1, , YTD June 2013 YTD June 2014 GLOC GLL FATUM Excludes realised and unrealised gains/losses Total LHP Revenue grew by approximately 5% over the prior year Largely driven by premiums as investment income remains flat 17

18 RICHARD ESPINET Executive Director / Group President Caribbean Property and Casualty 18

19 CARIBBEAN PROPERTY & CASUALTY GGIL GGIJL (WIA & GLOBE) FATUM GENERAL THOMA EXPLOITATIE TNI (54%) ROYALSTAR ASSURANCE (26%) CARIBBEAN PROPERTY & CASUALTY (CPC) CURACAO ARUBA RSA ANTILLES KRUIT EN VENEMA ASSURADEUREN An established and well recognized Caribbean Property & Casualty Insurer / The largest indigenous Property & Casualty Insurer in the Caribbean 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 provides a stable source of fee income Financial strength and consistently applied underwriting discipline are competitive advantages GGIL s rating of A- Excellent was confirmed by AM Best on 30 th July 2014 Consistently delivers high profit margins Successfully manages the underwriting cycles Good geographic spread Robust reinsurance program Established global network 19

20 CPC GROSS PREMIUMS WRITTEN 2,500 GPW ($million) 2,000 1,500 1,000 1, % CAGR 1, , , , , ,119 1,266 1, YTD June 2013 YTD June 2014 GGIL FATUM GGIJL $1.4B in GPW, which grew by $160MM (13%) over the comparative 2 nd quarter 2013, reflected improvements in the three major entities:- GGIL s $977M in GPW increased by $127MM (15%) mainly from business through our global network partners Fatum s $249M in GPW increased by $21MM (10%) mainly due to the RSA acquisition GGIJL s $189M in GPW increased by $11MM (6%) due mainly to the Globe s acquisition 20

21 CPC COMBINED RATIO 90.0% Combined ratio (Caribbean Operations) 80.0% 70.0% 60.0% 50.0% YTD June 2014 The improved Combined Ratio over the comparative 2013 period for the Caribbean P&C continues to be consistently below 90%, reflective of the Group s strong discipline in technical underwriting, and its distinctive reinsurance strategies 21

22 BRENT FORD Group Chief Investment Officer/Group President Asset Management 22

23 ASSET MANAGEMENT ASSET MANAGEMENT GAM Acts as investment manager for the group Offers investment opportunities to 13 independent mutual funds Offers financial advisory services to high net worth individuals Total Assets Under Management $10.1Bn Consistently profitable 23

24 AM ASSETS UNDER MANAGEMENT (AUM) 12.0 Assets Under Management* (TT$Bn) % CAGR YTD June 2014 * GAM & GAM mutual funds Assets under Management show an increase of 8% for the half year to June

25 AM GAM REVENUE & PROFITS YTD June 2013 YTD June 2014 Revenue ($MM) PAT ($MM) Revenue and Profit After Tax for Q increased by 5% and 18% respectively versus prior comparative period 25

26 CONSOLIDATED INVESTMENT MIX Investment properties YTD June 2014 $1.9, 12% $0.8, 5% $1.4, 10% $2.3, 16% YTD June 2013 $1.1, 7% Government securities Debentures & Corporate bonds Other $2.1, 14% $1.3, 8% $0.1, 0% $1.7, 11% $7.2, 48% Equities Term Deposits Cash & Cash equivalents $1.5, 10% $0.1, 1% $1.8, 12% $7.0, 46% 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 26

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