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 |
A.M.Best Company |
A++ |
Standard & Poor's |
AA+ |
COMDEX** |
99 |
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.
Statutory filings
- 2022 Fourth quarter statutory filing - Download
- 2021 Fourth quarter statutory filing - Download
- 2020 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 2023 - 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