press releases
Sagicor Financial Company Ltd. (TSX: SFC) today announced its results for the first quarter ended March 31, 2020
Sagicor Financial Company Ltd. (TSX: SFC) today announced its results for the first quarter ended March 31, 2020. First quarter reported net income to shareholders was a loss of $29 million, while underlying net income, which is a non-IFRS measure that excludes the estimated effect of the COVID-19 pandemic, was a profit of $18 million.
Highlights
- Total revenue declined 33% in the quarter to $343 million as asset devaluations lowered net investment income
- Net insurance premiums declined 13%, mainly impacted by lower new annuity business in the US offset in part by premium growth across all business lines in Jamaica
- Net loss from continuing operations attributed to shareholders of $29 million in the quarter was largely impacted by realized and unrealized market declines from the impact to broad markets from COVID-19 and increased provisions for expected credit losses
- Management’s estimate of underlying net income attributed to shareholders, excluding asset price declines, increased provisions to expected credit losses and other non-recurring items, which is a non-IFRS measure, was $18 million in the quarter, compared to net income attributed to shareholders of $15 million in the same period in 2019
- Earnings per share from continuing operations was a loss of $0.197 for quarter
- Strong financial position with total capital available of $2.1 billion and MCCSR of 227%
- Book value of per share was $7.07, a decline of 9% from $7.81 at December 31, 2019, driven by asset price declines
Dodridge Miller, Group President and Chief Executive Officer, said:
“The COVID-19 pandemic has created unprecedented disruption to the markets in which we operate. As COVID-19 was spreading globally and entering the Caribbean, Sagicor very early undertook a comprehensive response plan guided by the objectives of the safety of our people, business continuity for our customers and compassion for our communities. Sagicor provided much needed financial support and contributed to local government discussions on country preparedness and responses. Lock-downs and stay-at-home orders are forcing us to rethink how we engage with customers, staff and wider stakeholders. We at Sagicor are busy readying ourselves to quickly and efficiently operate in a post COVID-19 environment as lock-down restrictions ease in our markets, which is currently expected to occur gradually. We are pleased that our teams have stepped up to the challenge and have continued to serve the communities that rely on us.”
“We are also pleased that the underlying performance of our company, excluding the effects the pandemic had on asset prices at the end of the quarter, showed robust year over year growth. Many of the asset price declines we observed in March 2020 have substantially reversed themselves already in Q2. While new business generation will continue to be disrupted for the foreseeable future, we are well-positioned to resume our growth position when the economies in which we operate return to normal function.”
