Guardian Life posts strong financial results for 2020Sunday, April 11, 2021
Guardian Life Limited (GLL) is reporting after-tax profits of $9.3 billion for the year ended December 31, 2020, an increase of 17 per cent on the $7.9 billion achieved in 2019.
This performance, the company said in a news release, reflects growth in core business and improvements in its asset-liability matching and operational efficiency.
The company closed the year with an asset base of $135 billion, a strong solvency or MCCSR (minimum continuing capital and surplus requirements) ratio of 211.3 per cent and a return on average shareholders' equity of 34 per cent.
The company noted that the novel coronavirus pandemic had a deleterious impact on the economy during 2020, resulting in the curtailment of domestic investments as evidenced by the bearish performance of the Jamaica Stock Exchange.
“This negatively impacted GLL's local equities portfolio as it returned a disappointing -32.58 per cent compared to a positive return of 43.24 per cent in 2019. While the resultant fair value losses tempered the income from investment activities, the results from insurance activities more than offset these losses as the business grew, both organically and inorganically,” Guardian said.
“Premium income grew year-on-year by 12 per cent to $15.5 billion and at the end of the third quarter GLL acquired the life insurance and annuities portfolios of NCB Insurance Company Limited for $4.9 billion,” the company added.
“This acquisition has widened our customer base, increased our product offerings to the market and resulted in significant synergies,” the release quotes Guardian Life Limited President Eric Hosin.
The company also said that during the year it reaffirmed its commitment to the community as a responsible corporate entity by supporting a number of initiatives to ease the debilitating effects of COVID-19 on several sectors, including health and education.
“This included the donation of vital equipment to several hospitals, including University Hospital of the West Indies, Kingston Public and Victoria Jubilee hospitals. Several schools also benefited from donations of electronic devices to assist students with online learning,” Guardian said.
Despite the challenges brought on by COVID-19, Hosin reiterated his team's optimism in the Jamaican market, and noted that 2021 will be the company's best year yet, as he and his team continue to strategically manage stakeholder relationships, focus on growth in core business, service excellence, asset liability management, liquidity and risk management, and drive operational efficiency through technological improvements.
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