CHAIRMAN of the GTM Group of Insurance Companies, Mr. Ram L. Singh, has reported what he described as “another successful” year for the entity in his review of the company’s report and accounts for the year ended December 31st, 2012.

Singh delivered a review at the group’s Annual General Meeting, held last Wednesday at the Georgetown Club, in which he said the company has recorded a surplus of $263.2 million, which he said is an improvement over the previous year and is the largest surplus the company has ever recorded.
“During the year 2012, your company wrote new business amounting to $57B, with annualized premiums of $295 million,” Singh told shareholders, adding: “At the end of the year, your company’s total business in force amounted to $293 billion in sums insured, with annualized premium income of $1.5 billion.”
In addition, he disclosed that the company’s assets have increased by 16 percent since 2011, to a total of $5.1 billion at the end of 2012; and he revealed that the company has declared a 5 percent final dividend for all categories of shareholders.
The group will be paying to participating policyholders an amount equivalent to a “cash profit return of 60% of premiums.”
Singh also reminded attendees that the company has recently established a new branch in the Diamond/Grove community. He said: “This office was established to improve service delivery to our clients and prospective clients on the East Bank.”
He asserted that the company employs a very “aggressive strategy” to encourage repeat business, which he says “is evident in the policy retention ratio across the GTM Group.”
The efforts of “insurance advisors, brokers, and administrative staff contributed to this outstanding performance,” Singh disclosed.
Singh indicated that the company’s overall successful performance comes against the backdrop of a number of challenges in the “economies in Guyana and across the Caribbean,” which he noted included fierce competition, as well as new entrants in markets that are already saturated; unfortunate occurrences giving rise to claims; and the slow rate of recovery of the OECS (Organization of Eastern Caribbean States) from the impact of the global financial crisis.
“Caribbean economies dependent on tourism continue to struggle to regain economic stability,” Singh asserted, adding that increased unemployment, a rise in cost of living, and robust competition among players in the insurance market have impacted negatively on sales and retention of insurance policies in St. Lucia, Grenada, and St. Vincent.
Even though the Chairman’s review had alluded to “challenges” in the Guyana economy, Singh nevertheless stated that the Guyana economy continues to experience growth, to which the agriculture, timber, manufacturing, services, mining and quarrying sectors contribute significantly.
“In 2012, Guyana recorded yet another year of growth in gross domestic product,” he disclosed.
Singh explained that as a result of excess liquidity in lending institutions in Guyana, interest rates had fallen, giving way to lower lending rates on residential mortgages and motor vehicles. By extension, he observed, this has led to increased demand for insurance.
“Phenomenal expansion in the housing sector development schemes resulted in increases in property insurances for private dwellings and commercial buildings,” the GTM chairman pointed out, reassuring shareholders that, in spite of increased competition, the group has “a major share of the market for property insurance in Guyana.”
In the area of motor insurance, the chairman informed shareholders that, in 2012, “gross revenue for this class of business amounted to $900M.”  Noting that motor insurance claims totalled $401 million, Singh said, “The lack of discipline on our roads in Guyana, St. Lucia and Grenada continues to be of great concern, since it is the main cause of most accidents.”
He also warned that the threat of motor claims fraud “demands greater vigilance.” While gross claims for all classes of insurance totalled $744 million, Singh noted, the group recovered claims amounting to $107 million of these claims, leaving it to honour net claims worth $637 million.
In response to the large amount of claims, the group’s chairman told shareholders that the company endeavours to maintain its ongoing relationships with the Guyana Road Safety Council, the Guyana Fire Service and the Guyana Police Force through participation in their various activities on prevention and safety.