Ashford W. Meikle, Staff Reporter
Outgoing CEO of Guardian Holdings Limited, Peter Ganteaume (left) introduces CEO-designate Rory O'Brien at last week's investor's half yearly update. - NORMAN GRINDLEY/DEPUTY CHIEF PHOTOGRAPHER
THE TRINIDAD and Tobago-based financial conglomerate, Guardian Holdings Limited (GHL), now earns most of its insurance revenue outside of the Caribbean.
Up to June this year, Europe contributed about 36 per cent to the group's revenues, followed by Trinidad with 27 per cent and the Dutch Caribbean with 18 per cent. Guardian's Jamaican operation was responsible for 14 per cent of GHL's revenue stream.
At last week's investors' update, group financial officer, Howard Dottin told the media that Europe now contributes 75 per cent of the general insurance profits. Guardian Holdings operations in Europe are centred in the United Kingdom and Gibraltar, focusing entirely on general insurance.
GHL'S OPERATIONS
Europe is increasingly an important aspect of GHL's operations and the company has been aggressive in its expansion in that market as it diversifies outside of the Caribbean, which has seen a spate of increased hurricane activity in the region, a point acknowledged by Mr. Dottin.
"We were very exposed in terms of wind storms and even though the general insurance gave us a significant amount of profits over the years, last year we got hit and we were naked," said the CFO.
Consequently, as a result of the potentially high exposure, GHL, explained Mr. Dottin, "decided - and this decision was made a couple years ago because we recognised the risk - to diversify away from the wind storm areas and we have a significant presence now in Europe ... So the Caribbean area profits have shrunk and in Europe the profit contribution is huge."
THE GEOGRAPHICAL SHIFT
It is this risk in the Caribbean that has "driven the geographical shift across the Atlantic, altogether," commented outgoing CEO of GHL, Peter Ganteaume. According to the CEO, revenues from Europe is "much more stable over time."
In fact, as part of its expansion in Europe, Guardian General Limited, a GHL subsidiary, acquired the London-based insurance company, Zenith Group of Companies earlier this year. "That decision to acquire [Zenith] was made in order to diversify from windstorm areas," said Mr. Dottin.
While Europe generated over a third of the total revenues, it accounts for about 19 per cent of total group assets, compared to the Trinidadian operations, which owns 39 per cent of the assets. Jamaica accounts for 18 per cent of total assets and the Dutch Caribbean 20 per cent.
NO LIMITATIONS
But, Guardian's expansion will not be limited to Europe solely, said Mr. Ganteaume. "We do have certain geographical areas defined. Studies are being conducted - in some areas that we are competing - where we want to grow our business."
And, one of those areas will be Latin America.
"In life, health and pensions we see the natural reaching out from our base in the English speaking Caribbean to embrace the Spanish larger population around us," noted Mr. Ganteaume. Panama, El Salvador and the Dominican Republic are being targeted.
For its six months to June this year, Guardian Holdings and its subsidiaries reported revenue of US$354 million ($22 billion) with net profit of US$24 million ($1.4 billion).
The CEO-designate, Rory O'Brien, who will succeed Mr. Ganteaume next July, was also introduced at the forum.
