…income pegged at $1.9B

THE Guyana and Trinidad Mutual Fire Insurance Company Limited (GTM), at its 94th Annual General Meeting (AGM) held on Wednesday, reported that the company has recorded a growth of $133.76M in insurance premiums written.

This was announced by Chairman of the Board of Directors, Ram L. Singh, who was also re-elected to serve in the same capacity for the ensuing year.

Singh pointed out the challenges the company would have had over the past year, the main one being the increase in provisions for actuarial liabilities.

“There was a significant increase in provisions for actuarial liabilities amounting to $610M, due mainly to the continued decline in returns on investments other than in shares in other companies,” he said.

“Regrettably,” he further added, “if the continued absence of investment opportunities with acceptable returns persist, coupled with unrealistic limitations on the amounts than can be invested outside Guyana, your company may in future need to take drastic actions to arrest unfavourable movements in policyholders’ liabilities.”

Despite the challenges, however, GTM was still able to see progress.
After payment of reinsurance, Singh said the company’s net premium growth was $121.67M over 2017. Taking into account income from investments and currency translation, the total income was $1.93B or $124M more than the previous year.

An annual actuarial valuation was completed for the year ended December 31, 2018.
“I am pleased to advise that your company’s solvency ratio improved from 318.3 per cent at the end of December 31, 2017, to 467.9 per cent ; that is for every dollar of liability; your company has $3.67B in assets to cover that liability. The total capital required to cover liabilities as recommended by the Consulting Actuary was $1.18B and your company has total available capital of $4.35B… The Total Company Surplus grew from $3.06B to $4.61B, a growth of $1.55B or 50.64 per cent,” Singh proudly announced.

Another challenge faced by the company that was highlighted at the meeting is policy retention. However, Singh said GTM has adopted a business retention strategy that encourages policyholders to withdraw cash values or surrender the policy bonus as opposed to surrendering their policies outright due to financial constraints.

“In preserving the policy, a policyholder maintains the financial security for his or her beneficiary or beneficiaries while rebuilding the cash value should he or she require cash in the future. As a result of our efforts, the majority of payouts under the line item ‘Surrenders’ are in fact withdrawal of cash and bonus surrenders,” Singh explained.

In the Statement of Financial Position, he noted that as of December 31, 2018, the company’s asset base grew by $2.47B. This represents a growth of 23.97 per cent over the previous financial year. This growth was credited to the increase in value of non-current assets and improved share values of local companies in which GTM invested.

Singh expressed gratitude to the company’s valued policyholders for their unwavering support and loyalty over the years, and to the other directors on the Board who would have committed to the company.

He said that he is happy to be re-elected as Chairman and has no doubt about the support that will be received to ensure that the company moves forward.
Following the formal meeting, several staff members were recognised for differing achievements.