NASSAU, BAHAMAS — FamGuard Corporation, the BISX-listed holding company for Family Guardian continues to ‘weather the storms’ as it saw a $4.5 million profit for the first six months of the year, while cautioning shareholders that it may have to further adjust or possibly defer future dividends due to the impact of the COVID-19 pandemic.
Norbert Boissiere FamGuard Corporation’s chairman, in a statement on the company’s Q2 financial results noted that for the six months of 2020, the economy has been impacted by the COVID-19 pandemic which significantly affected economic activity within the country; this coming on the heels of hurricane Dorian in the last quarter of 2019.
“Despite these challenging economic conditions for which the pandemic has subjected our economy, FamGuard continues to weather the storms, with reported profits of $4.5 million for the period ending 30 June 2020 compared to $5.5m in the comparative period for 2019. Profit attributable to ordinary shareholders represented $0.44 per ordinary share, compared to $0.48 per share in 2019,” said Boissiere.
“The company recorded revenues totaling $63.0 million for the six months ended June 2020, which trailed the $65.6 million recorded in June 2019. Investment income declined by 27.2 percent over the corresponding prior period.
“Net fair value losses from fluctuations in market prices in the equity and bond market continue to be the main contributor to the negative variance, reflective of the impacts of the pandemic.”
He said: “Policyholder benefits totaled $39.5 million compared to $42.5 million for the six month period of 2019. The positive variance in benefits is primarily attributed to a decline in individual and group medical claims incurred during quarter two, as restrictions on movement and the elimination of elective procedures impacted the normal access to medical care.”
Boissiere noted that the company’s balance sheet remains strong with total assets exceeding $349 million, of which investment assets comprised $268 million, representing 77 percent of its total asset base.
“The company’s insurance subsidiary, Family Guardian Insurance Company Limited continues to maintain capital solvency measures above the local and international minimum requirements. 2020 continues to be a year of unprecedented challenges,” said Boissiere.
“While we are cautiously optimistic that this pandemic will eventually be behind us, a second surge of the virus has led to additional lockdowns and restrictions, bringing further uncertainty as to the duration and extent of the impact that it will have on the economy and the company.
He said: “These challenges compel management and the Board of Directors to exercise greater prudence in our fiscal responsibilities as we work to preserve capital adequacy, protect the company’s value, and achieve targeted performance as a part of our commitment to policyholders and shareholders.
“To this end, the Board of Directors has declared a dividend of $0.06 per share for shareholders of record as of 19 August 2020, payable on 26 August 2020. The Board remains vigilant in monitoring the developments surrounding COVID-19 and wishes to advise shareholders that it may be required to further adjust or possibly defer future dividends.”