GUARDIAN LIFE recorded profits of more than $300 million for 2002, a 55 per cent increase over the previous year. The calculations, based on unaudited figures, also showed that the company's revenue jumped by 32 per cent over 2001, and exceeded targeted projections by 22 per cent.
This was announced by Earl Moore, Guardian Life's president and chief executive officer as he addressed sales and administrative staff at the company's third annual awards ceremony at the Jamaica Pegasus Hotel on Monday.
According to Mr. Moore, the company also broke a seven-year industry record by settling a total of $529.3 million annualised premium income (API) during 2002, "the highest amount ever settled by any one life insurance company in the 200-year history of the Jamaican insurance industry."
Mr. Moore also said the Company established a target of $436 million API for 2002, but surpassed that by about $93.3 million, having settled 18,140 cases. The company's average API grew by 51 per cent, compared with the industry's average growth of 12 per cent for the same period.
He said that "despite a challenging investment climate, the company achieved an average rate of return on investments of 18 per cent and a 16 per cent increase in asset base through prudent asset utilisation and management."
He also noted that the company reduced its expense ratio by 17 per cent over 2001, as a result of "greater operational efficiency and cost containment."
During last year, Guardian Life's asset base grew by 16 per cent. Mr. Moore said "the disposal of non-performing assets owned by the company, as well as assets that do not factor in our long term objectives, was another strategy that we employed, and during the year, we successfully disposed of land at the corner of Waterloo Avenue and Hope Road, and the Terra Nova Hotel."
In commenting on the status of the insurance industry, Mr. Moore said the Insurance Act and Regulations 2001, as well as Jamaica's adoption of International Accounting Standards in 2002, would "undoubtedly improve transparency accountability within the industry, while protecting the interests of policyholders and pensioners. The industry must therefore improve risk capital management and implement realistic product pricing and eliminate inefficiencies."
