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Hurricanes hit GHL’s profits

Monday, November 20, 2017

Guardian Holdings Limited (GHL) achieved group profit $254 million for the nine months ended September 30. This was a decline of $6 million or two per cent compared to the corresponding period last year.

Deputy chairman Henry Peter Ganteaume said: “The sole cause of the somewhat disappointing financial performance was the net loss reserve booked as a result of the two catastrophic hurricanes, Irma and Maria, that affected the Caribbean during September. The group has fully provided for the claims expected to arise from both events in the amount of $100.3 million before tax.”

He said one positive from the catastrophic impact of the hurricanes is that the group’s reinsurance programme “again stood the sternest of tests and our scientific quantitative approach has protected the interests of policyowners and shareholders alike.”

Gauteaume said there are indication of a hardening of rates next year, particularly in countries most vulnerable to windstorm and flood.

GHL achieved net income from insurance underwriting activities of $197 million—$179 million lower than 2016—due in part to losses incurred as a result of the hurricanes.

“In addition, during 2016 net favourable adjustments were booked by our life, health and pension division following our adoption of the Caribbean Policy Premium Method of determining policyowner reserves; therefore, the results of the two periods are not strictly comparable.

“These circumstances notwithstanding, I am happy to report that our core business maintained its healthy growth trend with Group Net Written Premiums 10 per cent greater than prior period,” Ganteaume said.