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 firm holds a sufficient balance of cash reserves in proportion to its commitments, signifying stability. Guardian continues to receive high ratings across the board, a position the company has occupied for many years.

  Ratings*
Moody's Investors Service

Aa2
Excellent

A.M.Best Company

A++
Superior

Standard & Poor's

AA+
Very Strong

Fitch

AA+
Very Strong

COMDEX**

98
out of 100

 

Financials

Guardian performed well in 2020. We ended the year with $9.5 billion in capital and $85.5 billion in assets under management. Additionally, operating income before tax and dividends was $1.7 billion. 

2020 Financial Highlights (on a consolidated basis)

Premiums

$11 billion

Operating Income (Before Taxes & Dividends To Policyholders)

$1.7 billion

Capital

$9.5 billion

Assets Under Management

$85.5 billion

Policyholder Dividend Declared

$1.1 billion

Benefits Paid To Policyholders

$6.7 billion

Life Insurance In Force

$722 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) 2020 2019
Admitted assets
Bonds $47,972 $41,870
Unaffiliated common and preferred stocks 112 511
Investments in affiliates 1,205 1,210
Mortgage loans 4,816 4,879
Private and real estate equity 2,314 2,105
Policy loans 3,810 3,800
Receivable for securities, other invested assets and derivatives 1,448 1,449
Cash and short-term investments 422 778
Total invested assets 62,099 56,602
Due and accrued investment income 518 461
Premiums deferred and uncollected 1,157 1,137
Net deferred tax asset 728 694
Reinsurance recoverable from affiliate 3,176 2,989
Other assets 367 322
Total admitted assets $68,045 $62,205

 

As of December 31 (in millions) 2020 2019
Liabilities and surplus
Reserves for policy benefits 48,948 46,532
Policyholder dividends payable and other contract liabilities 6,691 4,186
Interest maintenance reserve 703 390
General expenses due or accrued 1,364 1,148
Asset valuation reserve 1,132 1,071
Other liabilities 1,447 1,262
Total liabilities 60,285 54,589
Policyholders' surplus 6,263 6,417
Surplus notes 1,497 1,199
Total liabilities and surplus $68,045 $62,205

 

For the Year Ended December 31 (in millions) 2020 2019
Revenues
Premiums, annuity considerations and fund deposits $8,951 $8,737
Net investment income 2,368 2,304
Other income 362 431
Total revenue 11,681 11,472

 

For the Year Ended December 31 (in millions) 2020 2019
Benefits and expenses
Benefit payments to policyholders and beneficiaries 5,154 5,055
Net increase to policy benefit reserves 2,354 2,274
Commissions and operating expenses 2,744 2,677
Total benefits and expenses 10,252 10,006
Gain from operations before policyholder dividends and taxes 1,429 1,466
Policyholder dividends (1,036) (968)
Gain from operations before taxes and realized capital losses 393 498
Income tax benefit 100 118
Income from operations before net realized capital losses 493 616
Net realized capital losses (346) (67)
Net income $147 $549

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

  • 2020 Fourth quarter statutory filling - Download

  • 2019 Fourth quarter statutory filing - Download

  • 2018 Fourth quarter statutory filling - Download


Investments

As of 12/31/2020, the majority of Guardian's total investment portfolio is comprised of public fixed income (59.2%) excluding surplus note debentures, private placement debt (18.0%), and commercial mortgages (7.8%). Public equity represents 0.1% of our total investment portfolio and is hedged to protect Guardian's capital from market volatility. Public fixed income holdings excluding surplus note debentures are comprised of public corporates (76.4%), structured finance (8.2%), municipal securities (4.9%), U.S. governments (4.5%), high yield public corporates & bank loans (6.0%). Our portfolio is of excellent credit quality with strong liquidity; 93.3% of our total fixed income excluding surplus notes are investment grade.

Asset class allocation – December 31, 2020

Statement Value $ Millions % of Invested Assets

Public Fixed Income (Excl. Surplus Note Debentures)

36,777

59.2%

Private Placement Debt

11,195

18.0%

Commercial Mortgages

4,816

7.8%

Policy Loans

3,810

6.1%

Private & Real Estate Equity

2,337

3.8%

Affiliates & Subsidiaries1

1,667

2.7%

Cash, Short-Term & Other Invested Assets

1,463

2.3%

Public Equity2

34

0.1%

Total Invested Assets

$62,099

100%

 

Fixed income – December 31, 2020

Statement Value $ Millions % of Bonds

NAIC 1 (Aaa-A/AAA-A)

25,828

53.8%

NAIC 2 (Baa/BBB)

18,932

39.5%

Investment Grade Subtotal

44,760

93.3%

NAIC 3 (Ba/BB)

1,139

2.4%

NAIC 4 (B)

1,701

3.5%

NAIC 5&6 (Caa/CCC & Below)

372

0.8%

Below Investment Grade Subtotal

3,212

6.7%

Total Bonds3

$47,972

100%

Guardian fixed income investor presentation, May 2021 - Download

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

On May 4, 2021 Guardian made the following financial information available - Download

On September 7, 2021 Guardian made the following financial information available - Download

Disclaimer

Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.

1Affiliates and Subsidiaries includes $462 million in affiliates classified as LLCs on the annual statement that are not private equity.

2Public Equity excludes Bond & Cash Mutual Funds.

3Total 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 12/2020 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 (A.M. Best, Standard & Poor's, Moody's, and Fitch). Comdex percentile ranks the companies, on a scale of 1 to 100 (with 100 being the best). 

Financial information concerning Guardian as of December 31, 2020, on a statutory basis: Admitted Assets = $68.1 Billion; Liabilities = $60.3 Billion (including $48.9 Billion of Reserves); and Surplus = $7.8 Billion.

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