Home' Trinidad and Tobago Guardian : May 15th 2015 Contents A38
Guardian www.guardian.co.tt Friday, May 15, 2015
SAGICOR FINANCIAL CORPORATION
FOR THE THREE MONTHS ENDED MARCH 31, 2015
The Sagicor Group recorded net income from continuing operations of US $18.5 million for the
first three months to March 31, 2015, compared to US $14.4 million for the same quarter of 2014.
Net income from continuing operations attributable to shareholders was US $12.7 million, compared
to the prior year result of US $9.8 million. Earnings per common share from continuing operations
was US 3.9¢, and represented an annualised return on common shareholders' equity of 9.9%.
Continuing operations comprising our businesses in the Caribbean and in the USA closed the
period with total revenue amounting to US $271.6 million, compared to US $261.7 million for the
corresponding period in 2014. Net premium revenue stood at US $164.9 million, and was in line
with the same period in the prior year. Net investment income and other income improved by
9.6% to US $106.7 million.
Benefits reached US $147.8 million for the quarter, compared to US $156.1 million for the
previous year and reflected a lower level of annuity business in the period when compared to the
prior year. Expenses amounted to US $100.2 million, (US $87.1 million for 2014) and included
US $8.4 million in asset taxes (2014, US $1.9 million) paid in March 2015 and fully expensed in
the period in accordance with reporting standards. Expenses also included amounts incurred
within the banking division, following the acquisition of the RBC Royal Bank's Jamaica banking
operations on June 27, 2014.
Total comprehensive income for the period was US $6.1 million, compared to US $7.9 million
for the same period in the prior year. Included in comprehensive income were net gains on
financial assets of US $1.4 million (2014, US$15.2 million). Retranslation losses amounted to
US $1.4 million, an improvement over the loss of US $11.5 million reported in the prior year,
largely resulting from the improved stability of the Jamaican dollar to the United States dollar,
during the period.
The discontinued operation represents our UK business, which was sold on December 23, 2013.
The terms of the sale required the Sagicor Group to retain an interest in the 2011, 2012 and
2013 underwriting years of account. During the period, management completed the negotiation
of reinsurance to cover this residual exposure, at a cost of US $12.7 million. The cost of this
reinsurance is expensed in these financial statements and this will bring to an end our exposure
to the Lloyd's market.
In the statement of financial position as at March 31, 2015, assets amounted to US $6.2 billion,
and liabilities totalled US $5.5 billion. Sagicor's Group equity totalled US $763.9 million. The
Group's debt, which is included in other liabilities, totalled US $362.3 million at the end of
the period, and represented an increase over the prior year amount of US $296.7 million. On
March 20, 2015, the Group entered into a convertible note arrangement in the amount of
US $58.0 million. The resulting debt to equity ratio temporarily increased to 47.4%.
The economic challenges currently being experienced in the Caribbean are expected to continue
during 2015. While modest growth is expected, hindrances to economic stability remain. The
Board and Management will continue to adopt prudent strategies, while focusing on reducing
operating costs and improving customer service.
On behalf of the Board of Sagicor, I wish to thank our Shareholders and Customers for their
May 14, 2015.
Three months ended March 31
(in US currency except percentages)
Group net income from continuing operations
Group net loss from discontinued operations
Overall Group net income
Shareholders' net income from continuing
Shareholders' net (loss) from discontinued
Overall Shareholders' net income/(loss)
Net income allocated to non-controlling interests $6.4m
Ratio of Debt to Equity
Earnings per common share from continuing
Annualised return of continuing operations on
common shareholders' equity
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Amounts expressed in US $000
March 31 December 31
(unaudited) (unaudited) (audited)
Other investments and assets
6,247,072 5,404,711 6,180,420
3,175,904 2,942,402 3,120,602
2,307,317 1,680,260 2,240,480
Liabilities of discontinued operation
Total liabilities and equity
6,247,072 5,404,711 6,180,420
These financial statements have been approved for issue by the Board of Directors
on May 14, 2015.
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