Company also hit hard by COVID-19 and its associated restrictions

Regional insurance giant Guardian Holdings’ financial performance last year was rocked by higher reinsurance premiums.

While the region did not suffer from any significant hurricane losses in 2020, international property reinsurers significantly increased rates for ­the Caribbean following heavy losses ­incurred as a result of Hurricanes Irma and Maria in 2017 and Hurricane Dorian in 2019. This had a significant adverse impact on Guardian’s financial performance, as purchasing reinsurance to cover its exposure to earthquakes and catastrophic hurricanes is one of its largest expenses.

The Trinidad and Tobago-based Guardian reported in its just completed annual report that, “indeed, 2020 was a year fraught wi­th tremendous challenges for our Group. It is in ­is context that I am very happy to report that we overcame these challenges and produced anoth­er very satisfactory year. Our staff and agents demonstrated commitment and resolve in quickly instigating digital channels to service our customers and make new sales”.

The robustness and flexibility of th­e new technological infrastructure in which the company had  invested over ­the past few years has paid off and “provided the bedrock for securely enabling our digital channels of sales and service”.

Managing inherent volatility through deliberate strategy

As have been done over ­the years, the insurance conglomerate has been able to absorb risk wi­th th­e associated volatility in returns. This was achieved by “deploying a deliberate strategy to dampen ­is inherent volatility by diversifying our revenues by line-of business and geography and our asset portfolio by asset class and geography”.

This strategy has served the company well in dealing wi­th th­e challenges of 2020. Profit attributable to equity holders for the year was TT$774 million, which signifies a strong continuation of the  pattern of grow­ in profitability. The performance is 12 per cent above the 2019 profit attributable to equity holders of TT$692 million.

Of even greater significance is ­that ­the five-year period since December 2015, Guardian has more ­than doubled profits, giving great confidence and enthusiasm, the regional insurance giant continue to systematically deploy its strategy of creating a robust company of outstanding financial performance ­that provides world-class employment opportunities.

Financial Highlights

Gross Written Premium has increased by three per cent from TT$6.36 billion in 2019 to TT$6.55 billion in 2020. The contribution from Life, Heal­th and Pensions business has stayed flat from TT$3.73 billion in 2019 to TT$3.70 billion in 2020. While Guardian would have preferred growth in this business line, the company is however, satisfied with the efforts in sales and premium conservation given ­the economic slowdown and t­he lack of mobility of customers and sales advisors, due to restrictions related to ­the pandemic.

Contribution from Property and Casualty business (General Insurance) has increased by eight per cent from TT$2.63 billion to TT$2.85 billion. All of the major Property and Casualty subsidiaries have contributed to ­this  increase.

This growth by Guardian has been driven by rate increases in ­the Northern Caribbean, growth­ in its Dutch business, enhancements to sales channels and new product offerings. During 2020, across all lines of business, Guardian started to deploy initiatives to increase product density, cross-sales and sales ­rough digital channels and is expecting that this would contribute to significant future growth­.

The company has also highlighted that 2020 was an unprecedented year in recent human history, as COVID-19 emerged as a calamity on a global scale inflicting death­ and economic malaise as it spread. As global lockdowns and travel restrictions were instituted, tourist arrivals plummeted, hydrocarbon prices accelerated and a decline in general economic activity.