Sagicor Financial Company Ltd. Announces Filing of ivari Business Acquisition Report and Comments on Financial Impact

December 14, 2023

Toronto and Barbados (December 14, 2023) – Sagicor Financial Company Ltd. (“Sagicor” or the “Company”) (TSX: SFC) today announced the filing of its Business Acquisition Report (“BAR”) for its acquisition of ivari which closed on October 3, 2023 (the “Acquisition”) which is available on SEDAR+ and on the Company’s website.

 

In connection with the filing of the BAR, Sagicor is updating its previous guidance on the pro forma([1]) impact of the ivari acquisition on key measures as denoted in the table below.

 

Q3 2023 (US$ millions unless otherwise noted)

Sagicor Standalone

(Reported)

Previous Guidance

(Pro Forma)(1)

Updated Impact

(Pro Forma)(1)

Shareholders' Equity

$443

At or Above

$650 to $725

$857

Net CSM to Shareholders(2)

$559

Approximately

$1,100 to $1,300

$1,126

Shareholders' Equity and Net CSM to Shareholders(2)

$1,001

At or Above

$1,800 to $2,000

$1,983

Debt to Capital Ratio(2)

31.0%

Neutral or Better

28.2%

 

The figures in the table above indicate a pro forma(1) book value per share(2) of US$6.04 or C$8.16 per share, and pro forma(1) shareholders’ equity and net CSM to shareholders per share(2), a measure of risk-bearing capital, of US$13.97 or C$18.88 per share as at Q3 2023.

 

Core earnings to shareholders(2) for 2024 is expected to be $90 million to $110 million, consistent with previous guidance. Given the higher than previously guided bargain purchase gain(1) on the ivari acquisition, and the resulting increase in our shareholders’ equity, our previous 2024 pro forma(1) guidance of the low range of 14% to 16% return on shareholders’ equity(2) will be reduced accordingly to reflect that increase.

 

For additional details regarding the transaction, please refer to the news releases dated November 13, 2023, October 3, 2023, and August 25, 2022, along with related materials available on SEDAR+ and on the Company’s website.

About Sagicor Financial Company Ltd.

Sagicor Financial Company Ltd. (TSX: SFC) is a leading financial services provider with over 180 years of history in the Caribbean, over 90 years of history in Canada, and a growing presence in the United States. Sagicor offers a wide range of products and services, including life, health, and general insurance, banking, pensions, annuities, and real estate. Sagicor’s registered office is located at Clarendon House, 2 Church Street, Hamilton, HM 11, Bermuda, with its principal office located at Cecil F De Caires Building, Wildey, St. Michael, Barbados.  Additional information about Sagicor can be obtained by visiting www.sagicor.com.

[1]Pro forma values are preliminary estimates subject to change and are detailed in the BAR. Balance sheet impacts assume acquisition was completed on September 30, 2023.

2Represents a non-IFRS measure. See the Non-IFRS Measures section in this document and in our MD&A for relevant information about such measures.

Note: Figures translated at USD/CAD exchange rate of 1.3520 as at September 30, 2023.