Lower profits at Guardian

Guardian Sign 2Guardian Holdings reported lower profit for 2015 of TT$335 million or $1.14 per share compared to TT$341 million or $1.47 per share. While the bottom-line was lower in 2015 profit from continuing operations were higher at $334 million versus $303 million.
Insurance premium income rose to $5.17 billion from $5.03 billion while net profits from insurance activities jumped to TT$662 million from $490 million. Investment income was flat at $772 million but gains from investment securities dropped from $86 million to just $6 million. Expenses were held tightly with operating expenses rising 6.3 percent to $962 million while finance cost rose 8 percent to $141 million.
Guardian has assets of TTS22.18 billion at the end of 2015 with financial assets and loans of $16.624 billion. Borrowed funds amount to $2.15 billion and equity capital ended at $2.73 billion.
The stock last traded on the Trinidad Stock Exchange at $13.80 for a PE just below 10 times earnings. IC Insider considers the stock to be undervalued but with the Trinidad’s economy in recession and with the bulk of Guardian business emanating in that country it will be difficult for revenues to rise in a meaningful manner and deliver consistent increased profits.
Guardian Holdings is primarily involved in the business of life insurance, investments and general insurance with operations throughout the Caribbean. In 2015, National Commercial Bank agreed subject to regulatory approval acquire just under 30 percent of the issued shares from a group of shareholders.

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