The Guyana and Trinidad Mutual Life Insurance Company Limited (GTM) registered a surplus of $45M for 2008 – down sharply from the $153M the year before.
The company’s annual report showed that insurance premiums were up significantly for 2008 but so were expenses. Insurance premiums in 2008 totalled $720M while the figure in 2007 was $603M. Overall revenue reached $838M compared to $803M in the previous year. While income from investments rose measurably there was a $98M currency exchange adjustment loss.
In terms of expenditure, claims rose from $189M in 2007 to $226M last year. Surrenders of policies also appreciated from $114M in 2007 to $122M. Commissions and sales expenses also jumped by 58% from $57.2M in 2007 to $90.8M. Salaries and other staff costs also rose from $105M to $135M – an increase of 28%. Management expenses expanded from $164M in 2007 to $190M in 2008.
At the start of 2008 there were 10,356 policies in force insuring $24.3B with annual premiums of $421M. During the year 1, 202 policies were issued insuring $5.9B with annual premiums of $76M. At the end of the year, there were 10,655 policies in force insuring $27.8B yielding annual premiums of $458M.
By the end of 2008 there were 51 group life plans insuring a total of $6.1B and yielding $50.3M in premiums. There were six group pension plans in force garnering premium income of $21.4M with contemplated annuity benefits of $82M. There were 1,270 health plans in force at the end of the year producing annual premiums of $255M.
A total of $226M was paid out in claims for 2008. Death claims in relation to 38 policies totalled $28M. Health insurance benefits paid out amounted to $143M.
The company’s current liabilities of $416M was well below current assets of $3.1B at the end of the year.
The value of the life assurance fund at the end of the year was $3.5B.
