GHL records $382m profit

Guardian Holdings Ltd (GHL) – the regional insurance and financial services conglomerate – has recorded a group profit of $382 million for the nine months ended September 30.

This represents a 187 per cent or $249 million increase over the previous corresponding period.

In its summary consolidated financial statements, GHL said its earnings per share increased to $1.65 versus $0.57 in the previous comparative period.

Equity value per share was $21.13 versus its comparative of $17.77.

"Our results benefited from year-over-year revenue growth as well as fair value gains generated in the current year versus losses in the prior year. This was partially offset by increasing reinsurance costs, higher operating expenses due to increased sales activities and international financial reporting standard (IFRS) 17 implementation costs as well as an increase in insurance finance expenses partially due to the impact of interest rate movements on liabilities and higher taxation expense," GHL chairman Robert Almeida said.

Almeida reminded shareholders that GHL has implemented IFRS 17 insurance contracts effective January 1.

IFRS 17 replaced IFRS 4 insurance contracts and materially changed the financial statements in terms of presentation, recognition and measurement of insurance contracts mainly in the life, health and pension segment.

GHL said its excellent performance was driven by its life, health and pension (LHP) segment, which contributed insurance revenues of $2.083 billion up from $1.797 billion in the prior year.

The property and casualty segment also reported increases in insurance revenues of $2.006 billion up from $1.836 billion in the prior year, principally from operations in the Dutch Caribbean and Bermuda markets.

Revenue from the insurance brokerage segment was $178 million, up 11 per cent from the prior year.

Net income from investing activities also increased by $747 million over the prior year to $1.2 billion. The net change from fair value movements over the previous year was gains of $666 million achieved from all main classes of investments, with local equities being a significant contributor.

Foreign exchange gains in the current year versus prior year losses also contributed to the favourable results.

"GHL continues to focus efforts on developing through thirdparty business, increased structuring and trade activities. Other operating expenses that were not attributable to insurance portfolios increased by $22 million or four per cent year-over-year. This was in part due to a combination of inflationary impacts on cost structure, continued investment in IFRS 17 implementation and increased technological expenses," Almeida said.

He added that GHL remains resolute on optimising performance whilst building out the phases of its strategic journey geared toward further digital technology, and exploring new markets, products and services.