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**

99
out of 100

 

Financials

Guardian performed well in 2019. We ended the year with $9.3 billion in capital and $79.3 billion in assets under management. Additionally, operating income before tax and dividends was $1.7 billion. 

2019 Financial Highlights (on a consolidated basis)

Premiums

$9.6 billion

Operating Income (Before Taxes & Dividends To Policyholders)

$1.7 billion

Capital

$9.3 billion

Assets Under Management

$79.3 billion

Policyholder Dividend Declared

$984.4 million

Benefits Paid To Policyholders

$7.0 billion

Life Insurance In Force

$699 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) 2019 2018
Admitted assets
Bonds $41,870 $39,361
Unaffiliated common and preferred stocks 511 661
Investments in affiliates 1,210 1,150
Mortgage loans 4,879 4,520
Private and real estate equity 2,105 1,814
Policy loans 3,800 3,635
Receivable for securities, other invested assets and derivatives 1,449 1,197
Cash and short-term investments 778 732
Total invested assets 56,602 53,070
Due and accrued investment income 461 415
Premiums deferred and uncollected 1,137 1,115
Net deferred tax asset 694 650
Reinsurance recoverable from affiliate 2,989 2,803
Other assets 322 436
Total admitted assets $62,205 $58,489

 

As of December 31 (in millions) 2019 2018
Liabilities and surplus
Reserves for policy benefits 46,532 44,258
Policyholder dividends payable and other contract liabilities 4,186 3,753
Interest maintenance reserve 390 301
Asset valuation reserve 1,071 879
Amounts due to brokers and other liabilities 2,410 2,126
Total liabilities 54,589 51,317
Policyholders' surplus 6,417 5,974
Surplus notes 1,199 1,198
Total liabilities and surplus $62,205 $58,489

 

For the Year Ended December 31 (in millions) 2019 2018
Revenues
Premiums, annuity considerations and fund deposits $8,737 $8,381
Net investment income 2,304 2,132
Other income 431 344
Total revenue 11,472 10,857

 

For the Year Ended December 31 (in millions) 2019 2018
Benefits and expenses
Benefit payments to policyholders and beneficiaries 5,055 4,535
Net increase to policy benefit reserves 2,274 2,481
Commissions and operating expenses 2,677 2,445
Total benefits and expenses 10,006 9,461
Gain from operations before policyholder dividends and taxes 1,466 1,396
Policyholder dividends (968) (966)
Gain from operations before taxes and realized capital losses 498 430
Income tax benefit 118 52
Income from operations before net realized capital losses 616 482
Net realized capital losses (67) (172)
Net income $549 $310

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

  • 2019 Fourth quarter statutory filing - Download

  • 2018 Fourth quarter statutory filling - Download


Investments

As of 12/31/19, the majority of Guardian's total investment portfolio is comprised of public fixed income (55.5%) excluding surplus note debentures, private placement debt (18.5%), and commercial mortgages (8.6%). Public equity represents 0.8% 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 (72.2%), structured finance (11.8%), municipal securities (5.9%), U.S. governments (5.1%), high yield public corporates & bank loans (5.0%). Our portfolio is of excellent credit quality with strong liquidity; 94.9% of our total fixed income excluding surplus notes are investment grade.

Asset class allocation – December 31, 2019

Statement Value $ Millions % of Invested Assets

Public Fixed Income (Excl. Surplus Note Debentures)

31,421

55.5%

Private Placement Debt

10,449

18.5%

Commercial Mortgages

4,879

8.6%

Policy Loans

3,800

6.7%

Private & Real Estate Equity

2,244

4.0%

Affiliates & Subsidiaries1

1,778

3.1%

Cash, Short-Term & Other Invested Assets

1,595

2.8%

Public Equity2

436

0.8%

Total Invested Assets

$56,602

100%

 

Fixed income – December 31, 2019

Statement Value $ Millions % of Bonds

NAIC 1 (Aaa-A/AAA-A)

25,349

60.5%

NAIC 2 (Baa/BBB)

14,402

34.4%

Investment Grade Subtotal

39,751

94.9%

NAIC 3 (Ba/BB)

844

2.0%

NAIC 4 (B)

1,095

2.6%

NAIC 5&6 (Caa/CCC & Below)

180

0.5%

Below Investment Grade Subtotal

2,119

5.1%

Total Bonds3

$41,870

100%

 

Guardian fixed income investor presentation, January 2020 - Download

On May 11, 2020 Guardian made the following financial information available. - Download

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

On June 20, 2020 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 $569 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 12/2019 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, 2019, on a statutory basis: Admitted Assets = $62.2 Billion; Liabilities = $54.6 Billion (including $46.5 Billion of Reserves); and Surplus = $7.6 Billion.

2020-97033