NASSAU, BAHAMAS — FamGuard Corporation, the BISX-listed holding company for Family Guardian saw its share price increase more than 20 percent in 2019, duplicating its 2018 net income of $8 million.
FamGuard’s chairman Norbert Boissiere noted in the company’s 2019 annual report that the final months of the year produced a historic challenge for the country with the severe damage inflicted by Hurricane Dorian.
“The impact on residents and businesses in Abaco and Grand Bahama was far-reaching, and rebuilding the affected communities and their economies will be a long journey,” Boissiere said.
“We extend our heartfelt thoughts and prayers to those who lost loved ones, their homes, and their employment, and we remain committed to assisting in the restoration efforts.”
He added: “Despite the hurricane’s effect on our operations in Marsh Harbour and Freeport in the fourth quarter, the group achieved notable progress in significant areas, reflecting the dedicated focus of our sales force and administrative staff and the loyalty of our policyholders.”
Boissiere noted that at year’s end December, 31, 2019, FamGuard recorded net income of $8 million, duplicating its 2018 performance when the company posted “the highest earnings in its history”.
“Profit attributable to ordinary shareholders of $7.1 million exceeded prior year by $769 thousand. Earnings per ordinary share increased to $0.71 compared to $0.64 in 2018. Shareholders’ equity attributable to the owners of the parent totaled $87.3 million in 2019. Total assets stood at $342.4 million at year-end,” he said.
The chairman further noted that gross premium income continued its positive trajectory increasing by $3.1 million to $110.8 million.
“This trend has resulted in a growth in premium income of $9.7 million over the past four years (2016-2019), affirming the public’s trust in our products and confidence in our financial strength,” Boissiere said.
“It is this strength that our policyholders rely on to protect their families’ financial security and mitigate risk. During 2019, policyholder benefits – covering death claims, hospitalization, sickness and accident andmajor medical, and policy maturities – totaled $85 million.“
Boissiere further noted that the company’s share price increased more than 20 percent in 2019, moving from the $6.30 recorded by the Bahamas International Securities Exchange (BISX) in 2018 to $7.60 (BISX) at year-end 2019.
It was also noted that in 2019 a decision was made to sell the portfolios of FamGuard’s wealth management subsidiaries, FGFinancial Limited and FG Capital Markets Limited, and the investment fund business of FG Financial Fund LimitedSAC with a view to focusing exclusively on the further growth of the Group’s core insurance business.
The company’s board approved the portfolios’ sale to LENO Corporate Services , with the transaction concluding on June 1.