Home' Trinidad and Tobago Guardian : March 15th 2016 Contents A48
Guardian www.guardian.co.tt Tuesday, March 15, 2016
Consolidated Financial Statements
Year ended December 31, 2015
Guardian Holdings Limited
Expressed in Trinidad and Tobago Dollars
Change in Accounting Policy and Restatement
In order to conform to e reserving me odology prescribed in e Trinidad & Tobago
Insurance Bill which we expect will be enacted in e near future, and which itself is in line wi
internationally accepted practice, we have effected is change in computing actuarial reserves
effective Financial Year 2015. In compliance wi IFRS, e 2014 Financial Statements presented
herewi for purposes of comparison have been restated accordingly.
The succeeding commentary on e 2015 performance of your Group makes reference to e
restated 2014 Financial Statements as opposed to ose previously reported. I believe at is
provides more meaningful and more easily comprehensible analysis of your Group's progress.
I am pleased to report at e Group's 2015 Profit before Tax totalled $449 million, an
improvement of $51 million (13%) from $398 million in 2014. Net Income from Insurance
Underwriting Activities totalled $662 million, an increase of $172 million (35%) from $490 million
in 2014. This resulted from e continued grow in e operating performance of our various
business units toge er wi e favourable impact of reserve releases arising from changes to
Jamaica tax legislation governing e insurance industry, which were partly offset by changing
e reserving me odology for our Jamaican annuity business.
2015 has been a challenging year on e investment front globally. Net Income from Investing
Activities for 2015 totalled $788 million, a decline of $82 million (9%) when compared to e
prior year figure of $870 million, which was mainly driven by a $94 million swing in fair values
reflecting e turbulent market conditions. We are actively continuing to rebalance our investment
portfolio and are well positioned to take advantage of significant opportunities to improve our
investment performance as interest rates rise.
The $27 million increase in operating expenses from $859 million in 2014 to $886 million in
2015 includes a $13 million one-off levy arising from e change in e tax-regime for insurance
companies in Jamaica as described above. I am again pleased to report at we are beginning to
benefit from our projects to drive down our cost as wi out is one-off levy operating expenses
would have increased by a modest 1.6%. During 2016 we will deploy a number of projects to
fur er drive down our costs.
Profits Attributable to Participating Policyholders increased by $4 million from $9 million in 2014
to $13 million in 2015, reflecting e significant increase in Net Income from Insurance Activities.
Net gain on discontinued operations mainly reflects our Lloyds Syndicates at we closed to new
business in 2011, wi only one of ese syndicates remaining in force as at December 31, 2014.
During 2014 we released $27 million of reserves from is Syndicate as its business quickly
came off our book. During 2015 is Syndicate registered a small loss of $4 million and we have
executed a reinsurance transaction to completely remove any exposure, erefore eliminating a
great source of volatility to our financial results.
Share of profit of associates fell by $4 million due to a mark to market loss in our associated
Taxation increased by $16 million from $86 million to $102 million mainly due to a tax credit of
$12 million booked in 2014.
Profit to equity holders declined from $341 million to $335 million driven by reductions in income
from investing activities and discontinued operations as well as one-off expenses, masking e
strong increase in operating performance of our business units. The Guardian Group consists of
e strongest portfolio of insurance companies across e Caribbean, holding a strong number
one position in Trinidad & Tobago, which is e largest insurance market in e English-speaking
Caribbean as well as number one or number two positions in all o er key markets. Our operating
companies have demonstrated robust performance producing a Return on Equity of 12.2%
despite e di cult investment market conditions. We are long-term investors and will produce
superior long-term investment returns despite short-term vagaries in investment markets.
Confident in e future outlook of e Group, e total dividend per share will be increased by
7% from 57¢ to 61¢. Consequently, fur er to e interim dividend of 19¢, e final dividend
will be 42¢ and will be paid to shareholders on record on March 29, 2016 when e Register of
Members will be closed for is purpose.
The Directors have also fixed a date for e Annual Meeting of April 29, 2016 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 audited financial statements for e financial year ended
December 31, 2015 will be available to shareholders in due course.
Ar ur Lok Jack
March 9, 2016
REPORT OF THE INDEPENDENT AUDITOR
ON THE SUMMARY CONSOLIDATED
To e Shareholders of Guardian Holdings Limited
The accompanying summary consolidated financial statements, which comprise e summary consoli-
dated statement of financial position as at 31 December 2015, and e summary consolidated state-
ments of income, comprehensive income, changes in equity and cash flows for e year en ended,
are derived from e audited consolidated financial statements of Guardian Holdings Limited and its
subsidiaries ( e "Group") for e year ended 31 December 2015. We expressed an unmodified audit
opinion on ose consolidated financial statements in our report dated 9 March 2016.
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 consolidated financial statements of e Group.
Management's Responsibility for e Summary Consolidated 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 31 December 2015 are consistent, in all mate-
rial respects, wi ose consolidated financial statements, on e basis of management's established
criteria as described in Note 1.
Port of Spain,
March 9, 2016
SUMMARY CONSOLIDATED STATEMENT
Gross premiums written
Net underwriting revenue
Selling and distribution expenses
Net income from insurance underwriting activities
Net investment income
Net fair value (losses)/gains
Net income from investing activities
Net income from brokerage activities
Net income from all activities
Operating pro t
Share of profit of associated companies
Pro t before taxation
Pro t a er taxation
Amount attributable to participating policyholders
Pro t from continuing operations
Net gain on discontinued operations
Pro t for e year
Pro t attributable to:
- Equity holders of e parent
- Non-controlling interests
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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