One year after suffering a loss of $31 million as a result of debt restructuring (NDX) by the Jamaican Government, Guardian Holdings Ltd (GHL) is reporting profits of $286 million for the nine months of 2014 to September.Consolidated financial statements published yesterday show that the integrated financial services group, which specialises in life, health, property and casualty insurance, pensions and asset management, had an increase of $88 million or 45 per cent over the comparable period last year.
"Had we not incurred this loss last year, the increase of profits year-on-year would be $58 million or 25 per cent," chairman Arthur Lok Jack said in his report on the group's financial performance.Lok Jack said the group's insurance business top line grew by seven per cent from $3.9 billion to $4.1 billion, with an increase of $122 million or six per cent in the life, health and pensions segment over the corresponding period in 2013. The property and casualty segment increase by $132 million or eight per cent.
"The insurance underwriting activities of both segments produced profits of $453 million, an increase of $60 million or 15 per cent over the previous period," he said.He continued: "The persistent low interest rates regime coupled with the lack of new investment opportunities continue to be a challenge and as a result, our investment income fell from $666 million to $602 million, a decline of $63 million.
"This decline was offset by a favourable movement in fair value gains of $100 million inclusive of the Jamaiccan NDX."Lok Jack said GHL's operating expenses increased by $34 million or five per cent, of which $19 million was related to the Pointe Simon project. He explained that expenses from that project were capitalised in 2013 during the construction stage and this year they were booked through the income statement since the project has entered the commercialisation phase.
"Without this change on treatment, our operating expenses would have increased three per cent year-on-year," he said.Lok Jack said transactions for disposal of most of the Pointe Simon condominiums should be concluded by year-end. He said there is demand for retail space at the facility and signing of leases has started.He added: "The sale of the hotel will be concluded by year-end and we look forward to its opening in the latter half of next year.
"We continue to close a number of small leases in our office tower and are in the process of negotiating two large leases."Lok Jack told the group's shareholders the board is satisfied with the strong performance over the nine months and look forward to continued momentum to year-end.