Apr 2011 Financial News

GHL declares $425m after-tax profit

Apr 01, 2011

Guardian Holdings yesterday declared an after-tax profit of $425 million for its 2010 financial year—a sharp turnaround from the group’s loss of $824 million in 2009 and its best performance since 2004, according to the group’s chairman, Arthur Lok Jack. In his chairman’s report, Lok Jack said that the company’s earnings per share for 2010 amounted to $1.94 versus a loss of $4.10 in 2009, which was driven primarily from the loss on disposal of Zenith Insurance Company. According to the company, if the effects of the Zenith write-off are eliminating, GHL’s earnings per share from continuing operations increased seven per cent during the year under review over an increased equity base related to the issue of new shares to the International Finance Corporation and an IFC fund.

GHL said that its balance sheet was significantly strengthened in 2010 with shareholders’ capital increasing 34 per cent from $2.264 billion at the end of 2009 to stand at $3.039 billion at the end of 2010. All of GHL’s operating subsidiaries’ capital and solvency levels are well above statutory minimums, which is fundamental to its obligations to meet all policyholder liabilities, the company said. GHL said that its core businesses in the Caribbean continued to perform very well with the life, health and pension business segment increasing its operating profit before fair value movements by 32 per cent from $232 million in 2009 to $307 million this reporting period. GHL said that its regional property and casualty business segment produced an operating profit before fair value movements of $149 million.

This was achieved despite the fact that 2010 was the second most active hurricane season on record since 1969, according to the company. It noted that the most significant storm was Tomas, which knocked $32 million off its bottom line. The asset management segment contributed after-tax profit of $39 million, while the group’s lone poor performer was the international property and casualty business, which produced a net loss of $77 million. “This loss stemmed in particular from our Lloyds of London business, Jubilee, and was mainly attributable to catastrophe and motor losses,” said Lok Jack. GHL will pay a final dividend of 33 cents per share.


Source:
Trinidad Guardian
Friday April 1, 2011

http://guardian.co.tt/business/2011/03/31/ghl-declares-425m-after-tax-profit