Updated: 16-08-2024 - 12:00PM 3 12 CLOSED
Aug 04, 2015
A $38 million reduction in investment returns mainly due to changes in the fair value of its bond portfolio was among developments that negatively affected Guardian Group’s investment performance for the half year ended June 30.
Other factors were a $15 million reduction in investment income in the continuing low interest rate regime and a $12 million decline in foreign exchange gains, chairman Arthur Lok Jack said in a statement which accompanied the group’s latest financial results.
“We are presently engaged in adjusting our investment portfolio to try to achieve better investment returns without compromising our current risk profile,” he said.
The group’s profit attributable to equity shareholders for the period totalled $168 million, which was lower than the $183 million reported in the same period last year.
However, net income from insurance activities increased by $80 million or 30 per cent from $267 million to $347 million. This increase included a favourable reserve release of $60 million from the group’s Jamaican Life subsidiary due to a change in the basis of taxation of life insurance companies in Jamaica.
Lok Jack said: “Our insurance companies, in all markets, have achieved excellent results as evidenced by the fact that without this reserve release net income from insurance activities would have increased by 7.5 per cent. We expect an additional release later in the year when the final calculations are performed by our actuaries.
“We are continuing in our drive to reduce costs and realise synergies across our business units.”
He said the board is satisfied with the group’s half-year performance and remains positive about the outlook for the rest of the financial year.
Source:
Trinidad Guardian
Tuesday August 4, 2015
http://www.guardian.co.tt/business/2015-08-04/guardian-group%E2%80%99s-investment-returns-down-38m