By Curtis Rampersad, Contributor FORTUNE MAGAZINE does not write about entrepreneurs in the less glamorous, steady-as-she-goes life insurance business, Peter Ganteaume concedes.
No matter. As Ganteaume has realised in his capacity as group chief executive of Trinidad insurance and real estate titan Guardian Holdings Ltd, its rapid growth can be measured in other ways.
Without endangering shareholders interests, GHL has aggressively pursued profitable ventures and the company's performance has been outstanding.
Profits attributable for distribution in 2001 was $188.5 million, 36.6 per cent higher than 2000. Group assets increased by 10.1 per cent to $6.3 billion.
Its subsidiary Guardian Life of the Caribbean continues to be the industry leader in individual life business while its Jamaican subsidiary was the market leader in 2001, having wrested the position from one company which had led the industry in sales for 13 years.
GHL's aim is to dominate the Caribbean.
But its plan is to go about it in a way that uses sustainability of cash flows while managing the core business of life insurance, pensions and annuities.
With the attributes of "tremendous investment skills and advanced technology", GHL has learned how to "pursue investment activity that beefs up juicy returns," Ganteaume said in an interview last week at his office in Westmoorings.
Strategies do not always pay off, the way GHL would like.
Taken from the Trinidad Express website.
It has just come out of a corporate battle for insurance firm Life of Barbados, having lost out to rival bidder The Mutual.
While he says the group is disappointed at having not gained controlling interest in LoB, Ganteaume says the group has other avenues in Barbados.
He notes that GHL has formed alliances and demonstrated its professionalism in that market.
While wishing The Mutual success in its endeavours, Ganteaume commends the LoB board for the professional way it discharged its duties during the heated corporate battle and for getting a great price for its shareholders' LoB stock.
Shareholders eventually got Bds$5.10 for every stock unit.
But even without denting the life insurance market in Barbados, GHL maintains a strong presence in general insurance in that country and is looking at other opportunities, Ganteaume says.
As to the impact of The Mutual acquiring controlling interest in LoB, He explains: "We wouldn't be in the chairs that we occupy if we did not perceive the burden that the competitor now has to bear."
By managing its core insurance, the group has the surplus capital to pursue a variety of vehicles.
It has created Guardian Asset Management to pursue joint ventures like commercial real estate, following the model of its highly successful residential real estate venture.
The group is also looking at launching an energy investment fund as well as a real estate fund.
There are also several telecommunications opportunities. One that stands out is a technology-based endeavour in Jamaica, which GHL is putting together now.
Of course there is a risk to any venture, Ganteaume admits.
But cognisant of its model for success, and by "exercising great selectivity while managing the portfolio of investments and spreading risks", Ganteaume is confident of the group's growth path.
Involvement in the energy business is also in the cards, Ganteaume says.
"We don't have to be the owner or even the majority investor in six or eight or ten deals," he explains "But if we have a 15 per cent stake in a good cross-industry spread, we'd be happy."
During 2001, GHL consolidated its position in general insurance with the 100 per cent acquisition of Nemwil and Caribbean Home.
GHL also acquired from Neal and Massy Holdings its insurance brokerage firm and with the successful rights issue in June, 2001, shareholders' equity increased from $625.9 million to $997.8 million, an increase of 59.4 per cent. Ganteaume says GHL has spent about US$200 million in new investments during the past three years, all of which have put in good returns.
He says the Board remains dedicated toward future growth.
While the current economic climate does not augur for exceptional growth, GHL expects the United States will emerge from recession in the fourth quarter and Europe in early 2003.
Trinidad and Tobago and Jamaica may both experience a trying period as a result of the social and political conditions of business but insurance sales will grow nonetheless.
With pre-tax earnings of $273.6 million, Ganteaume says GHL has vigorously continued along its strategic growth path.
And while values are fundamental to all of its activity, he notes that earnings growth and returns on invested capital are "the key measures of our success".
