Insurance and real estate giant the Guardian Group (Guardian Holdings Ltd) has seen its net profit after tax in 2013 plummet 87 per cent from 2012.
While the Port of Spain-based group of companies noted that its net after tax profit to shareholders at the end of 2013 stood at $46 million, this was a “decline of 87 per cent when compared to $353 million in 2012”.
In published financial statements to December 31, 2013 yesterday, group chairman Arthur Lok Jack said this “significant decline” was mainly due to a further and substantial write-down of $457 million of Guardian Group’s Pointe Simon asset in Martinique coupled with a realised loss of $30 million due to Jamaica’s national debt exchange as well as fair value losses of $27 million.
The Pointe Simon project consists of an office tower building (for which leases are now being negotiated), condominiums and a hotel which will be completed later this year.
An agreement for sale has been entered into for the hotel with a French hotel operator and the write-down, commercialisation of the office tower and condominiums will make Pointe Simon a viable project that will begin to contribute cash profits to the Guardian Group, Lok Jack said.
He noted that the group’s insurance companies are all strongly capitalised and hold dominant positions and are expected to continue to sustained growth.