THE Guyana and Trinidad Life Insurance Company Limited (GTM) has recorded a net profit, after tax, of $31.4M, Chairman R. L. Singh told the Annual General Meeting on Tuesday at the Georgetown Club, Camp Street, Georgetown,

He said further that GTM had achieved a surplus of revenue over expenditure of $187M in 2013, compared to $184M for 2012, notwithstanding a number of challenges.

Chairman Singh told the AGM that the year 2013 was another challenging one for GTM Life Insurance Company, particularly in the Eastern Caribbean territories in which the company operates.

However, the company saw a 12.5% growth in premiums net of reinsurance and 10.38% growth in total revenue amounting to $1.45B, offset by expenditures of $1.26B, resulting in a surplus of revenue over expenditure of $187M compared to $184M for 2012.

He added that after taking into account provisions for increase in policyholders’ liabilities of $156M, the company recorded a net profit after tax of $31.4M.

The Chairman noted that the adoption of new reporting requirements under international standards and practices requires that changes in actuarial liabilities must now be recorded as an expenditure in the Statement of Profit and Loss and Other Comprehensive Income under the new line item ‘Net Movement in policyholders’ liability’.

Singh pointed out that in Guyana, notwithstanding increased competition, the company continues to plough ahead with the sale of 811 of the 1,460 new individual life policies sold with annualised premiums of $61.33M.

He added that the continued fall in interest rates on investments, including fixed deposits, treasury bills and saving accounts has had a negative impact on the sale of Universal Life policies, but this was offset by an increase in sale of the Futura, a fixed-term policy.

Singh stated that the actuarial valuation done at the end of 2013 indicates that the company’s total surplus increased from $2B at the end of 2012 to $2.4B, despite the decline in viable medium to long-term investment opportunities and interest rates.

The Chairman said that the company’s Solvency Ratio, which is one of the ratios used to measure the company’s ability to meet long-term debts, has increased from 315.5% at the end of 2012, to 325.8% at the end of 2013. This ratio is significantly above the 150% required.
Written By Michel Outridge