Financial highlights and Ratings

​​​

Ratings

Ratings agencies are responsible for gauging the financial strength of companies so that investors, policyholders, or partners can work with the facts. Exemplary ratings indicate that a company can honor its financial commitments and pay its claims. Guardian continues to receive high ratings across the board, a position the company has occupied for many years.

  Ratings*
Moody's Investors Service

Aa1
High Quality
2 of 21

A.M.Best Company

A++
Superior
1 of 15

Standard & Poor's

AA+
Very Strong
2 of 20

COMDEX**

99
out of 100

 

Financials

We had one of our best years financially in 2021, driven by our strong long-term investment focus, sound underwriting, prudent expense management, and earnings from complementary businesses. We achieved these results despite the uncertain economic environment and the adverse impact of COVID-19.

We ended the year with $10.7 billion in capital, 13 percent more than in 2020 and an all-time record for Guardian. Our assets under management also rose to $90.2 billion, another record. Additionally, operating income rose 10 percent to a record $1.9 billion, reflecting our robust investment returns and revenue growth.

2021 Financial Highlights (on a consolidated basis)

Premiums, Deposits, Fees & Equivalents

$12.3 billion

Operating Income (Before Taxes & Dividends To Policyholders)

$1.9 billion

Total Adjusted Capital

$10.7 billion

Assets Under Management

$90.2 billion

Policyholder Dividend Declared

$1.1 billion

Benefits Paid To Policyholders

$7.4 billion

Life Insurance In Force

$776 billion


The following condensed financial statements of The Guardian Life Insurance Company of America have been derived from audited statutory financial statements, which are available upon request.

Results are for The Guardian Life Insurance Company of America only (not consolidated).

As of December 31 (in millions) 2021 2020
Admitted assets
Bonds $50,112 $47,972
Unaffiliated common 111 112
Investments in affiliates 1,197 1,205
Mortgage loans 5,330 4,816
Private and real estate equity 3,240 2,314
Policy loans 3,765 3,810
Receivable for securities, other invested assets and derivatives 1,498 1,448
Cash and short-term investments 791 422
Total invested assets $66,044 $62,099
Premiums deferred and uncollected 1,153 1,157
Reinsurance recoverable from affiliate 3,381 3,176
Other assets 1,549 1,613
Total admitted assets $72,127 $68,045

 

As of December 31 (in millions) 2021 2020
Liabilities and surplus
Reserves for policy benefits $51,774 $48,948
Policyholder dividends payable and other contract liabilities 6,734 6,691
Interest maintenance reserve 779 703
General expenses due or accrued 1,350 1,364
Asset valuation reserve 1,444 1,132
Other liabilities 1,457 1,447
Total liabilities $63,538 $60,285
Policyholders' surplus 7,091 6,263
Surplus notes 1,498 1,497
Total liabilities and surplus $72,127 $68,045

 

For the Year Ended December 31 (in millions) 2021 2020
Revenues
Premiums, annuity considerations and fund deposits $9,445 $8,951
Net investment income 2,704 2,368
Other income 390 362
Total revenue $12,539 $11,681

 

For the Year Ended December 31 (in millions) 2021 2020
Benefits and expenses
Benefit payments to policyholders and beneficiaries $5,347 $5,154
Net increase to policy benefit reserves 2,826 2,354
Commissions and operating expenses 2,881 2,744
Total benefits and expenses $11,054 $10,252
   
Gain from operations before policyholder dividends and taxes 1,485 1,429
Policyholder dividends (1,114) (1,036)
Gain from operations before taxes and realized capital losses 371 393
Income tax (expense)/benefit (9) 100
Net realized capital losses (139) (346)
Net income $223 $147

Guardian’s Dividend and Financial Performance

Guardian is a mutual life insurance company, which means that our participating life policyholders share in our financial results, in part, through the payment of annual dividends. Download the PDF to learn more about Guardian’s dividend payments.

Download

Statutory filings

  • 2021 Fourth quarter statutory filing - Download
  • 2020 Fourth quarter statutory filing - Download
  • 2019 Fourth quarter statutory filing - Download


Investments

Guardian strategically targeted the private equity market 15 years ago as a sector that could generate long-term profitable returns that were not available in the public markets. As a result of a consistent investment pace in private equity, Guardian has constructed a portfolio of top-tier buyout and venture capital funds that were able to take advantage of historic M&A markets in 2021, resulting in exceptional returns and income generation along with very strong portfolio appreciation.

Asset class allocation – December 31, 2021

Statement Value $ Millions % of Invested Assets

Public Fixed Income (Excl. Surplus Note Debentures)1

38,717 58.6%

Private Placement Debt

11,395 17.3%

Commercial Mortgages

5,330 8.1%

Policy Loans

3,765 5.7%

Private & Real Estate Equity

3,259 4.9%

Affiliates & Subsidiaries2

1,756 2.7%

Cash, Short-Term & Other Invested Assets

1,787 2.7%

Public Equity3

35 0.1%

Total Invested Assets

$66,044 100%

 

Fixed income – December 31, 2020

Statement Value $ Millions % of Bonds

NAIC 1 (Aaa-A/AAA-A)

26,516 52.9%

NAIC 2 (Baa/BBB)

20,506 40.9%

Investment Grade Subtotal

44,022 93.8%

NAIC 3 (Ba/BB)

1,120 2.2%

NAIC 4 (B)

1,738 3.5%

NAIC 5&6 (Caa/CCC & Below)

232 0.5%

Below Investment Grade Subtotal

3,090 6.2%

Total Bonds4

$50,112 100%

Guardian fixed income investor presentation, March 2022 - Download

IRS Form 8937- Report of organizational actions affecting basis of securities - Download

On March 23, 2022 Guardian made the following financial information available - Download

On September 6, 2022 Guardian made the following financial information available - Download

Disclaimer

Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors. The total dividend calculation includes mortality experience and expense management as well as investment results.

Public fixed-income holdings excluding surplus note debentures are comprised of public corporates (77.8%), structured finance (8.3%), municipal securities (3.5%), US governments (3.5%), high yield public corporates & bank loans (5.9%), and emerging market securities (1.0%).

Affiliates and Subsidiaries includes $560 million in affiliates classified as LLCs on the annual statement that are not private equity.

Public Equity excludes Bond & Cash Mutual Funds and is hedged to protect Guardian’s capital from market volatility.

Total Bonds includes public and private debt but excludes surplus note debentures classified as Schedule BA invested assets, commercial mortgages and preferred stock.

* Ratings as of 9/2022 and are subject to change. Source: Vital Signs and Third Party Rating Agencies. The ratings earned by Guardian do not apply to the investments issued by GIAC or distributed through PAS.

** Comdex is not a rating, but a composite of all ratings that a company has received from the major rating agencies. Comdex represents a company’s percentile standing, on a scale of 1 to 100 (with 100 being the best), in 2022 in relation to other companies that have been rated by the major agencies.

Financial information concerning Guardian as of December 31, 2021, on a statutory basis: Admitted Assets = $72.1 Billion; Liabilities = $63.5 Billion (including $51.8 Billion of Reserves); and Surplus = $8.6 Billion.

2022-144030 20240930