Sagicor's Profits Up 54% In First Quarter Of 2021
Sagicor Group Jamaica Limited, posted net profit attributable to shareholders of $2.91 billion, a 54% improvement over the same period in 2020 which was sharply impacted by the novel COVID-19 virus. This significant turnaround was largely attributed to the group’s 38% spike in revenues to $23.12 billion which was negatively impacted in the prior year due to unrealized losses and credit loss provisions emanating from the pandemic shock experienced in March 2020.
Sagicor’s individual life insurance segment played its part in this strong recovery as net premium income grew by 5% to $7.28 billion. Against the backdrop of the pandemic, Sagicor managed to scale its portfolio to more than 630,000 policies in Jamaica and the Cayman Islands as people saw the greater need for insurance in the future. The employee benefits, commercial banking, and investment banking segments also all recorded growth in the improving business environment.
As a result of Sagicor’s sale of Playa Hotels in January, unlike 2020, the Group recorded no share of losses in, nor impairment of, its tourism assets in Q1 2021. Due to the disposal and derecognition of Playa as an associate, Sagicor Group Jamaica netted $13.6 billion in cash which saw its cash close out the period at $34.8 billion.
Though the pandemic continues to pose some risks for business lines in the group, Sagicor Group Jamaica remain optimistic about the future. Sagicor Bank and Sagicor Investments have been recovering solidly with a more open economy starting to pay dividends to their respective businesses.
Chris Zacca, President and CEO of Sagicor Group Jamaica said “We are pleased with the performance of the Group as a whole , as we continue to navigate a very difficult period globally. We intend to continue on this trajectory as we adapt to and innovate in the new environment.”