ANSA Merchant Bank: celebrating success

On August 10, AMB published its unaudited interim results, in which the ANSA McAL Group of Companies subsidiary reported PBT for the six month period ended June 30 had increased by 43 per cent or almost TT $50 million to TT $164 million compared to the same period last year, when the bank recorded PBT of $115 million. Earnings per share improved by 41 per cent to $1.51 ($1.07 in 2016).

Speaking with Business Day about AMB’s performance, Hill said “despite the challenging environment”, the bank’s increase in PBT meant it was able to contribute $164 million “and a significant fillip to the overall performance of the ANSA McAL Group.”

Hill said AMB saw growth in its investment portfolios in all companies: expanded mortgage lending, increases in insurance premiums and underwriting and, with the full integration of the Consolidated Finance Company Limited in Barbados, “our results were further enhanced by a regional uplift.

“All in all, we are starting to see the benefits of several strategic initiatives in all our companies. We launched our Securities Trading platform in the bank in 2015 and followed this in 2017 with the launch of our Private Wealth Management business, which has already started to gain momentum.

“We understand wealth creation and preservation in our Group, as its in our Corporate DNA,” Hill added. “So this new service was an easy bolt on for us to our suite of financial services. These solid advances have mitigated the other areas of the business where we deliberately were a bit more conservative, such as our retail and commercial lending, where we see the most exposure to the current tough economic climate.”

For the period under review, AMB’s subsidiary, Trinidad and Tobago Insurance Limited (TATIL), gained market share in its Motor and Property books over the prior year. Hill told Business Day that the insurance company “has demonstrated a focus on growing the business” which has included the use of “endearing TATIL ads which have become a hallmark of the brand strategy for our General Insurance business, where you are not a policy number, but a person.”

Quoting the popular tagline from one of its best known ads, Hill said, “TATIL, where people are people.

“This has been quite successful in driving an increase in policy count and market share. Policy growth was also as a result of the cross selling across our companies and its direct sales initiatives. If I might also add, once again A.M. Best confirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “A-” with a Stable Outlook for TATIL. This rating was based on TATIL’s continued solid risk-adjusted capitalisation, reinsurance support, history of profitability and overall strong operating performance which it has become known for, given its favourable underwriting results augmented by its steady investment income.”

Like its parent company, TATIL Life, also recorded an improved performance in PBT of $61 million ($2.8 million in 2016) as well as a market share gain in its mortgage and life products.

Regarding this subsidiary, Hill told Business Day that, “In addition to the exceptional performance of its investment portfolio, TATIL Life increased its underwriting on its annuity business and its mortgage lending business, both of which contributed to the improved performance over 2016.”

Hill credited the “very dedicated team at TATIL Life, led by Ron (Ronald Milford), a very entrepreneurial MD who has really been working the business since he joined us just about two years ago.”

Looking ahead, Hill said while the local and international environment “continues to present challenges”, AMB remains “confident of delivering a solid performance in 2017.

“Our businesses are well capitalised, our underwriting conservative and our teams fully energised to create shareholder value every day, so we anticipate that we will overcome any challenge thrown at us in the markets in which we operate, while we look for opportunities to grow both organically and inorganically.”