Home' Trinidad and Tobago Guardian : November 14th 2013 Contents A52
Guardian www.guardian.co.tt Thursday, November 14, 2013
SAGICOR FINANCIAL CORPORATION
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013
NINE months ended SEPTEMBER 30
(in US currency except percentages)
Group net income from continuing operations
Group net (loss)/income from discontinued operations
Overall Group net (loss)/income
Shareholders' net income from continuing operations
Overall Shareholders' net (loss)/income
Ratio of Debt to Equity
Earnings per common share from continuing operations
Annualised return of continuing operations on common shareholders' equity
The Sagicor Group recorded net income from continuing operations of
US $39.3 million for the nine months to September 30, 2013, a slight
improvement over the US $38.6 million, for the 2012 comparative period.
Net income from continuing operations attributable to shareholders was
US $23.8 million, a 31% increase over the previous year's result of US $18.2
million and includes a capital loss of US $11.8 million, (US $5.7 million
to shareholders) incurred as a participant in the Government of Jamaica
National Debt Exchange Programme in January this year. Earnings per
common share from continuing operations were US 7.6 , and represented
an annualised return on common shareholders' equity of 6.1%.
Continuing operations comprising our businesses in the Caribbean and in
the USA performed well, with revenue amounting to US $790.6 million, an
improvement of US $50.1 million over the corresponding period in 2012.
Net premium revenue closed the period at US $506.1 million, an increase
when compared with the US $468.1 million, recorded for the same
period in the previous year. Net investment income and other income
improved from US $272.4 million to US $284.5 million and includes the
abovementioned capital loss.
Total benefits and expenses (including agents and broker's commissions)
increased by US $51.8 million to close at US $738.5 million for the period
compared with US $686.7 million for the prior period. This growth was
consistent with the growth in premium revenue.
As previously indicated, the Sagicor Group entered into an agreement
with AmTrust Financial Services Inc. on July 26, 2013, for the sale of
Sagicor Europe Limited (SEL) and its subsidiaries, which includes Sagicor
at Lloyd's Limited. This arrangement will result in Sagicor retaining an
interest in the ultimate results of the 2011, 2012 and 2013 underwriting
years of account after the syndicate has been formally sold. The impact of
this transaction and the performance of SEL are included in these results
to September 30, 2013. This transaction is expected to close in the fourth
quarter of 2013 upon regulatory approval.
The discontinued operation recorded a net loss of US $41.2 million
for the nine-month period, and includes an impairment estimate of
all future losses of US $10.8 million, which was essentially unchanged
from the second quarter. This impairment provision is based on current
estimates, and is subject to revision if there is a change in the syndicate's
performance relating to the above noted underwriting years. The provision
is also subject to future currency exchange movements.
In the statement of financial position as at September 30, 2013, assets
amounted to US $5.8 billion and liabilities totalled US $5.1 billion.
Sagicor's Group equity totalled US $730.2 million. The Group's debt,
which is included in other liabilities, totalled US $249.4 million. The
resulting debt to equity ratio was 34.2%.
The global economy continues to be fragile, although showing signs of
modest improvement. The Caribbean economies with the exception of
Trinidad & Tobago continue to be under pressure, with no noticeable
improvement in economic activity. In this economic environment, the
continuing operations of the Sagicor Group produced encouraging results.
On behalf of the Board of Sagicor, I wish to thank our Shareholders and
Customers for their continued support.
November 07, 2013.
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