Annual Shareholders Meeting Year ended 31 December 2011 10 May 2012 - - PowerPoint PPT Presentation

Annual Shareholders Meeting Year ended 31 December 2011

10 May 2012

“Building for the future”

Jeffrey Mack Group Chief Executive Officer

“Building for the future”

2011 Highlights: Environment

17% 15% 17% 25% 23% 5/17/2012 3

Characterized by 2 key macro events:

• An uncertain business climate caused by the continued weak economic conditions in our

region, and in particular, within the Eurozone.

• Punctuated by historic low interest rates and volatile equity markets.

This affected our investing objectives through lower yielding fixed income securities, a higher than desired amount of cash and short term instruments, and below average

• pportunities for achieving realized gains.
• 2011 saw the highest level of worldwide catastrophe related losses in history.
• US$ 370Bn in economic losses
• US$ 116Bn in insured losses

Our Lloyds of London business, Jubilee, sustained losses of TT$ 210MM driven largely from its worldwide property account.

2011 Highlights: Financial Results

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2011 2010

Var $ Var %

Reported Profit for the Year 246 425 (179)

• 42%

Basic EPS $ 1.13 $ 1.94

($0.81)

• 42%

Discontinued Net Loss (210) (56) (154)

278%

Continuing Profit for the Year 456 481 (25)

• 5%

Basic EPS $ 2.04 $ 2.20

($0.16)

• 7%

Full Year Actual (TT$MM)

GAMJA (100%) Sold Jul 10

Segments

5

LIFE HEALTH AND PENSION INTERNATIONAL PROPERTY & CASUALTY ASSET MANAGEMENT STRATEGIC ALTERNATIVE INVESTMENTS

GLOC (100%) GLL (100%) FATUM LIFE CURACAO (100%) FATUM LIFE ARUBA (100%) FATUM HEALTH (100%) GGIL (100%) WIA (100%) FATUM GENERAL CURACAO (100%) FATUM GENERAL ARUBA (100%) TNI (54%) RSA (25%) GUARDIAN RE (100%) JUBILEE (39.1%) Sold Aug 11 RGM (33.33%) SERVUS (50%) ECGPC (15%) LAEVULOSE (79%) GAM (100%)

CARIBBEAN PROPERTY & CASUALTY

ZENITH (100%) Sold Dec 09

17% 15% 17% 25% 23% 5/17/2012 6

After our (2010) reported strategic review of our Lloyd’s business:

• The Group sold Jubilee Group Holdings Ltd (JGHL)to Ryan Specialty Group (RSG) in Q3 2011
• Reported a $74MM profit on sale of shares of JGHL
• Ceased underwriting at Lloyd’s at the end of Q3
• RSG took over management of Jubilee Managing Agency, including oversight of the prior years’

business

• RSG took a much more aggressive position on loss reserves, well in excess of GHL’s own

technical estimates

• GHL required to book to enhanced estimates in Q4 - $210MM (as at Q3 losses were

$67MM)

• Business segment accounted for as “discontinued”
• GHL is satisfied that it has for all intents and purposes subsumed future material movement
• Any improvement from this level of loss reserves will flow to the GHL’s “bottom line”

Discontinued operations

5/17/2012 7

(827) 406 261 365 461 471 (1,000) (800) (600) (400) (200)

• 200

400 600 2009 2010 2011

Profit attributable to equity holders ($millions)

Reported Continuing operations CAGR 14.5%

Profit attributable to equity holders

• Continuing operations are delivering stable consistent growth

Earnings per share

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• EPS from continuing operations reflects the positive performance

$1.81 $2.20 $2.04

$1.75 $2.14 $1.98

201.8 209.3 231.1 185 190 195 200 205 210 215 220 225 230 235 $- $0.50 $1.00 $1.50 $2.00 $2.50

2009 2010 2011

EPS (continuing operations)

Basic Diluted Weighted Average Shares

Dividends per share

5/17/2012 9 * - excludes $0.25 special dividend paid in 2008

$0.30 $0.52 $0.44 $0.50 $0.52 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2007 2008 2009 2010 2011

Dividends per share

• Dividend per share reflects pattern of growth from our core operations

5/17/2012 10

2011 Achievements

• Designated the Caribbean Company of the Decade by World Finance

Magazine

• Guardian Life of the Caribbean named Company of the Year by World

Finance Magazine

• An unprecedented fours years in a row
• The Jamaica Stock Exchange awarded Guardian Life Limited the

award for best website Achievements

Strategic Priorities

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Creating shareholder value through delivering stable and growing earnings

• Increasing revenue organically, while maintaining our disciplined

underwriting

• Inorganic revenue and accretive earnings growth
• Best in region Risk Management and Corporate Governance framework

Kerri Maharaj Group Chief Financial Officer

5/17/2012

“Building for the future”

Consolidated financial highlights 2011

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2011 2010 Change

Net result from insurance activities 360 261

37.9%

Net income from investment activities 1,056 1,159

• 8.9%

Net income from all activities 1,416 1,420

• 0.3%

Operating expenses (729) (728)

0.1%

Finance charges (110) (83)

32.8%

Operating profit 577 609

• 5.3%

Profit from continuing operations 456 481

• 5.2%

Full Year Actual (TT$MM)

• Excellent core results despite challenging environment

Geographic distribution of net income from all activities

17% 17% 25% 23%

5/17/2012 14

0.6 , 46% 0.4 , 26% 0.3 , 18% 0.1 , 10%

2011 - $1.42 billion

Trinidad & other Caribbean Jamaica Netherland Antilles International P&C 0.8 , 57% 0.3 , 23% 0.3 , 19% (0.0), -1%

2010 - $1.42 billion

Trinidad & other Caribbean Jamaica Netherland Antilles International P&C

• IPC unfavorably affected in 2010 by hurricane Tomas and Chilean earthquake

Balance sheet composition

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• High quality assets: intangibles less than $0.3Bn each year
• Consistent equity growth

21.7 21.0 21.5 19.4 17.9 18.3 2.3 3.1 3.2

• 5.0

10.0 15.0 20.0 25.0

2009 2010 2011

Consolidated Balance Sheet ($billions)

Total assets Total liabilities Net equity

Consolidated Investment mix

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8% 49% 13% 0% 8% 9% 13% 2011 Investment properties Government securities Debentures & Corporate bonds Other Equities Term Deposits Cash & Cash equivalents 7% 49% 18% 0% 8% 7% 11% 2010 Investment properties Government securities Debentures & Corporate bonds Other Equities Term Deposits Cash & Cash equivalents

• Stable investment profile in line with Group strategy

Gearing ratio

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0.84 0.37 0.40

• 0.10

0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 2009 2010 2011 Debt-Equity

• Leverage ratio is carefully managed

5/17/2012 18

Life Health and Pensions (LHP)

Life Health & Pension

19

LIFE HEALTH AND PENSION

GLOC (100%) GLL (100%) FATUM LIFE CURACAO (100%) FATUM LIFE ARUBA (100%) FATUM HEALTH (100%)

• Leading market shares:

– # 1 In Trinidad

• Over 600 dedicated life sales agents
• GLOC carries an “A-” Excellent rating

by AM Best – # 2 In Jamaica

• Over 300 dedicated life sales agents

– Fatum has approximately 50% of the Dutch Caribbean market

• Sales primarily broker-driven

LHP – Financial Highlights 2011

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190 120 66 225 120 65

• 50

100 150 200 250 GLOC FATUM GLL

Annualised Premium Income ($million)

2010 2011

303 323 200 220 240 260 280 300 320 2010 2011

Profits ($million)

• $410MM
• $376MM

5/17/2012 21

Caribbean Property and Casualty (CPC)

Property & Casualty

22

GGIL (100%) WIA (100%) FATUM GENERAL CURACAO (100%) FATUM GENERAL ARUBA (100%) TNI (54%) RSA (25%)

CARIBBEAN PROPERTY & CASUALTY

 Largest Caribbean property & casualty insurer

• Double the size of its nearest competitor measured by

gross premiums written

• Underwrites in every English speaking Commonwealth

country in the Caribbean

 Financial strength and consistently applied underwriting discipline are competitive advantages

• GGIL carries an “A-” Excellent rating by AM Best
• Consistently delivers high profit margins

 Manages the underwriting cycles  Good geographic spread  Excellent reinsurance program

CPC – Financial highlights 2011

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115 146

• 20

40 60 80 100 120 140 160 2010 2011

Profits ($million)

1,009 263 1,347 287

• 200

400 600 800 1,000 1,200 1,400 1,600 GGIL FATUM

GPW ($million)

2010 2011

• $1.3Bn
• $1.6Bn

60.0% 70.0% 80.0% 90.0% 100.0% 2007 2008 2009 2010 2011

Combined ratio

(caribbean operations)

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Asset Management (AM)

Asset Management

25

ASSET MANAGEMENT

GAM (100%)

 Acts as investment manager for the

group

 Offers investment opportunities to 13

independent mutual funds

 Offers financial advisory services to high

net worth individuals

 Total Assets Under Management $8.2Bn

• Consistently profitable

AM – Financial highlights 2011

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6.2 6.9 7.4 8.2

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2008 2009 2010 2011

AUM ($billion)

CAGR 10% 18 20 10 12 14 16 18 20 2010 2011

Profits ($million)

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Thank You