GHL Annual Report 2004
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2004 A YEAR OF
CHALLENGES AND ACHIEVEMENTS
I am delighted on the occasion of my first
statement to the shareholders as Group
Chairman of Guardian Holdings Limited (GHL)
to report excellent results for the
year ended December 31st, 2004. Operating
Profit rose by 52% to $831.7 million
from $545.6 million in 2003. It is important
to note that this increase was recorded
despite substantial losses incurred as a
result of the damage wrought by four
hurricanes in various territories in the
Caribbean and Florida in which our general
insurance subsidiaries write business. The
provision for these losses amounting to
TT$147 million (US$23 million) was, however,
offset by exceptionally strong
performances from our life companies in both
Trinidad and Tobago and Jamaica,
and an increase in the surplus amounting to
$125 million arising from the winding
up of the pension plan of Guardian Life of
the Caribbean Limited (GLOC). Profit
attributable to shareholders was $583.2
million or $3.05 per share as compared
with the $2.25 per share achieved in 2003
excluding non-recurrent items, an
increase of 36%.
Group revenues were 30% higher in 2004 due
in large part to the acquisition of the
Link Insurance group in the United Kingdom
and Gibraltar, which was consummated
in late 2003. Total revenue in the General
Insurance division rose by 66% from $632
million to $1,050 million, while total
revenue in the Life, Health and Pensions
division increased by 13% from $1,456
million to $1,650 million. The Group’s total
assets grew by 19% to $13.8 billion (US$2.2
billion), reflecting an increase of 20%
in Investments and growth of 18% in
Insurance Funds.
Medium term debt was higher by 18% to reach
$1,252.6 million (US$199.6 million).
In December 2004 GHL successfully completed
the largest corporate bond
issue in the Caribbean for $700 million
(US$111 million). This has allowed the
Group to retire an existing bond in order to
take advantage of the significantly lower
borrowing costs available in the Trinidad
and Tobago market and thereby to reduce
our average cost of funds. The Group’s
overall debt:equity ratio remains in line
with
international norms for insurance groups.
The details of the excellent performance
of our operating companies are provided in
the Group CEO’s Review and in the
Management Discussion and Analysis.
I would like to make special mention of the
performance of the Caribbean general
insurance companies. In 2004, the Caribbean
experienced a hurricane season of
unusual frequency and severity. There were
14 named storms of which nine developed
into hurricanes; four of these hurricanes
struck various territories and caused
extensive
property damage. Particularly hard hit were
Grenada, Cayman Islands and
Florida. These are precisely the
circumstances in which insurance comes into
its
own. They provide insurance companies the
opportunity to honour the promises
made to their policyholders to indemnify
them in accordance with the terms of their
contracts and to do so promptly and
fairly.... |
