Home' Trinidad and Tobago Guardian : March 13th 2015 Contents A26
Guardian www.guardian.co.tt Friday, March 13, 2015
Consolidated Financial Statements
Year ended December 31, 2014
Guardian Holdings Limited
Expressed in Trinidad and Tobago Dollars
The Group's performance for e year 2014 resulted in a Net Profit A er Tax Attributable to Shareholders
of $400.5 million, an increase of 779% as compared to 2013 when we wrote down our Pointe Simon
asset. Consequently, earnings per share for 2014 are $1.73 as compared to $0.20 in 2013.
I am pleased to report substantial progress in e commercialisation of Pointe Simon.
We have concluded sales transactions for 35 of e 45 condominium units. This includes e sale of
25 units under a block transaction taking advantage of an incentive available under e French tax regime.
We expect to secure outright sales of e remaining units during 2015.
The rental of e o ce tower is progressing according to our marketing plan. Having closed a number of
leases we expect to move towards full occupancy by e end of 2015.
The hotel, which is scheduled to open in e last quarter of 2015, was sold to a Martinique incorporated
company known as Sas Compagnie Hoteliere de la Pointe Simon (CHPS) for €21.16 million generating
a profit of €1.1 million. The Group provided vendor financing for e sale while retaining a 24% interest.
The vendor financing is interest bearing and is fully secured by e hotel. It has already been reduced by
€3.5 million and will be reduced by a fur er €3.8 million before e end of 2015.
It is important to note at Pointe Simon has no ird-party debt and all revenue would redound to e
Group, positively impacting our bottom line.
Following double-digit grow in revenue over bo 2012 and 2013, Gross Premium Income grew by
a disappointing 2% from $4.9 billion to $5.0 billion. This is as a result of a change in our approach to
underwriting as we tactically refocused e sales effort wi in e Life division to traditional protection
products and away from investment products. These traditional products have higher profit margins at
more an compensate for e reduction in gross premiums. Fur er, during 2013 we received significant
one-off annuity premium income from our Jamaican operations at was not repeated in 2014. In 2015
we expect to return to our normal levels of strong grow .
Notwi standing at Net Income from Insurance Underwriting Activities fell from $580.6 million in
2013 to $546.0 million in 2014, Operating Profits before fair value adjustments on Pointe Simon totalled
$433.8 million, an increase of $40.6 million or 10% over e 2013 figure of $393.2 million. The drop in
Net Income from Insurance Underwriting Activities is as a result of adverse claims experience in our heal
and general insurance business as well as actuarial streng ening of reserves in some lines. It should be
noted at nei er of ese factors is structural and we expect at ey would have no material impact on
performance going forward as ey resulted from normal statistical volatility in our business.
Total contribution from Investing Activities was $923.3 million, an overall increase of $65.5 million over
Operating Expenses have reduced from $917.9 million in 2013 to $905.1 million in 2014. This is despite
an additional $27 million of expenses in 2014 due to e accounting standards relating to commercialising
Pointe Simon. Robust effort is being made to fur er reduce operating expenses across all areas.
Our portfolio of financial service companies diversified across lines of insurance and geographies toge er
wi our diversified investment portfolio has wi stood operating volatility and provided strong overall
performance, generating a Return on Equity of 13.7%.
Confident in e fact at our negative legacy issues which have plagued us over recent years have been
resolved, and given our solid business franchises and significant market positions roughout e region,
your Board of Directors, a er many years of flat dividend payment, has decided to increase e total
dividend per share by 9.6% to fi y-seven (57) cents. Consequently, fur er to e interim dividend of
seventeen (17) cents, e final dividend will be forty (40) cents and will be paid to shareholders on record
on March 25, 2015 when e Register of Members will be closed for is purpose.
This year has been of special significance to e Group as it sets e tone for a future of solid, increasing
The Directors have also fixed e date of e Annual Meeting for May 11, 2015 at 4:30 p.m. at e
Guardian Corporate Centre, 1 Guardian Drive, Westmoorings. The formal Notice of Annual Meeting
wi e Directors' Report and summary of e audited financial statements for e financial year ended
December 31, 2014 will be forwarded to Shareholders in due course.
Ar ur Lok Jack
March 11, 2015
REPORT OF THE INDEPENDENT AUDITORS ON THE
SUMMARY CONSOLIDATED FINANCIAL STATEMENTS
To e Shareholders of Guardian Holdings Limited
The accompanying summary consolidated financial statements, which comprise e summary
consolidated statement of financial position as at December 31, 2014, and e summary consolidated
statements of income, comprehensive income, changes in equity and cash flows for e year en ended,
are derived from e audited financial statements of Guardian Holdings Limited and its subsidiaries ( e
"Group") for e year ended December 31, 2014. We expressed an unmodified audit opinion on ose
consolidated financial statements in our report dated March 11, 2015.
The summary consolidated financial statements do not contain all e disclosures required by Interna-
tional Financial Reporting Standards. Reading e summary consolidated financial statements, erefore,
is not a substitute for reading e audited financial statements of e Group.
Management's Responsibility for e Summary Financial Statements
Management is responsible for e preparation of a summary of e audited consolidated financial
statements on e basis of eir established criteria as described in Note 1.
Our responsibility is to express an opinion on e summary consolidated financial statements based on
our procedures, which were conducted in accordance wi International Standard on Auditing (ISA) 810,
"Engagements to Report on Summary Financial Statements."
In our opinion, e summary consolidated financial statements derived from e audited consolidated
financial statements of e Group for e year ended December 31, 2014 are consistent, in all material
respects, wi ose financial statements, on e basis of management's established criteria as described
in Note 1.
Port of Spain,
March 11, 2015
STATEMENT OF INCOME
12 Mon s
12 Mon s
Gross premiums written
Net premiums written
Net income from insurance underwriting activities
Realised loss on NDX
Net fair value gains/(losses) on financial instruments
Net income from o er investing activities
Net income from all activities before fair value
adjustment on Pointe Simon
Operating pro t before fair value adjustment on Pointe Simon 433,764
Fair value adjustment on Pointe Simon
Share of profit of associated companies
Pro t/(loss) before taxation
Pro t/(loss) a er taxation
Amount attributable to participating policyholders
Pro t/(loss) from continuing operations
Net gain on discontinued operations
Pro t/(loss) for e year
Loss attributable to non-controlling interests
Pro t attributable to equity holders of e parent
Earnings per share
- Basic - for continuing operations
This statement may contain certain forward looking statements, including but not limited to, statements
as to future operating results and plans at involve risks and uncertainties. We use words such as
"expects", "anticipates", "believes", or "estimates", e negative of ese terms and similar expressions to
identify forward-looking statements. Such forward-looking statements involve known and unknown risks,
uncertainties and o er factors which may cause e actual results, performance or achievements of e
Company to differ materially from any future results, performance or achievements expressed or implied
by ose projected in e forward-looking statements for any reason.
Forward Looking Statements
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