Sagicor Financial Reports First Quarter 2024 Results and Announces Meeting of Shareholders, Availability of 2023 Management Information Circular, Annual Report and Annual Information Form
This news release for |
-
Net income to shareholders of
$26.2 million -
New business CSM(1)of
$40.1 million -
Shareholders' equity of
$964.4 million , with book value per share ofUS$6.84 orC$9.27 -
Shareholders' equity plus net CSM to shareholders(1) of
$2.1 billion , orUS$14.97 orC$20.29 per share - Debt to capital ratio(1) of 26.7%
- MCCSR ratio(1)of 303%
- Group-LICAT(1) of 136%
-
Dividend of
US$0.06 per common share to be paid during the second quarter of 2024 (US$0.24 annualised dividend)
"Sagicor is pleased to report another solid quarter in Q1 2024. Net income to shareholders was slightly ahead of plan as we benefited from positive asset price movement in aggregate, in particular in our
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1 Represents a non-IFRS or other financial measure. See the Non-IFRS and Other Financial Measures section in this document and in our MD&A for relevant information about such measures. |
In Q1 2024, net income to shareholders was
Sagicor's capital position remained stable during Q1 with a slight increase to shareholders' equity plus net CSM to shareholders(1) and total net CSM(1). Sagicor remains well capitalized with an MCCSR ratio(1) for its insurance businesses of 303%, a Group-LICAT(1) of 136%, and a debt to capital ratio(1) of 26.7%.
Sagicor intends to disclose a drivers of earnings analysis and adopt a core net income to shareholders measure as a key performance indicator in future quarters. Sagicor believes this will support users' understanding of the underlying financial performance and the long-term performance and valuation of the business.
Profitability (US$ millions) |
Q1 2024 |
Q1 2023 |
Change |
Net income to shareholders |
26.2 |
1.4 |
>100% |
Annualised return on shareholders' equity(1) (%) |
12.2 % |
1.3 % |
>100% |
New business CSM(1) |
40.1 |
28.2 |
42 % |
|
|
|
|
Financial Strength (US$ millions) |
Q1 2024 |
Q4 2023 |
Change |
Shareholders' equity |
964.4 |
970.9 |
(1 %) |
Net CSM to shareholders(1) |
1,145.4 |
1,135.0 |
1 % |
Shareholders' equity plus net CSM to shareholders(1) |
2,109.8 |
2,105.9 |
0 % |
Total net CSM(1) |
1,285.5 |
1,278.5 |
1 % |
Book value per share(1) (US$ per share) |
|
|
(1 %) |
MCCSR ratio(1) |
303 % |
301 % |
2 pts |
Group-LICAT(1) |
136 % |
136 % |
0 pts |
Debt to capital ratio(1) |
26.7 % |
26.6 % |
0.1 pts |
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1 Represents a non-IFRS or other financial measure. See the Non-IFRS and Other Financial Measures section in this document and in our MD&A for relevant information about such measures. |
Sagicor has four main reporting operating segments: Sagicor Canada (ivari),
Performance (US$ millions) |
Q1 2024 |
Q1 2023 |
Change Y/Y |
Revenues(1) |
|
|
|
Sagicor Canada |
242.2 |
- |
- |
|
126.3 |
151.1 |
(16 %) |
Sagicor Jamaica |
157.9 |
156.9 |
1 % |
|
115.6 |
108.8 |
6 % |
Head office(2) |
(2.7) |
1.4 |
(>100%) |
Total |
639.3 |
418.2 |
53 % |
Insurance Revenue |
|
|
|
Sagicor Canada |
171.6 |
- |
- |
|
24.4 |
21.2 |
15 % |
Sagicor Jamaica |
80.6 |
72.0 |
12 % |
|
78.6 |
73.0 |
8 % |
Head office(2) |
- |
- |
- |
Total |
355.2 |
166.2 |
>100% |
Net Income / (Loss) to Shareholders |
|
|
|
Sagicor Canada |
5.2 |
- |
- |
|
37.1 |
4.4 |
>100% |
Sagicor Jamaica |
3.2 |
7.3 |
(56 %) |
|
9.8 |
5.0 |
96 % |
Head office(2) |
(29.1) |
(15.3) |
(90 %) |
Total |
26.2 |
1.4 |
>100% |
New Business CSM(1) |
|
|
|
Sagicor Canada |
10.0 |
- |
- |
|
13.7 |
8.2 |
67 % |
Sagicor Jamaica |
7.2 |
8.0 |
(10 %) |
|
9.2 |
12.0 |
(23 %) |
Head office(2) |
- |
- |
- |
Total |
40.1 |
28.2 |
42 % |
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1 Represents a non-IFRS or other financial measure. See the Non-IFRS and Other Financial Measures section in this document and in our MD&A for relevant information about such measures. |
2
Head office includes parent company financing costs, administrative expenses, an interest in |
Sagicor Canada
- Sagicor Canada had a solid quarter for premium production in universal life insurance.
- Net income to shareholders of
$5.2 million was negatively affected by the impact of rising interest rates, partially offset by favorable equity returns and narrowing corporate bond spreads. - Total net CSM(1) was
$568.0 million , an increase of 1% Q/Q.
-
Sagicor Life USA's new business production(1) was consistent with expectations at$238.5 million . - Net income to shareholders was
$37.1 million for the quarter, reflecting positive market value adjustments partially offset by insurance experience losses related to policyholder mortality. - Total net CSM(1) was
$209.9 million , an increase of 3% Q/Q driven by new business CSM(1) of$13.7 million .
Sagicor Jamaica
- Sagicor Jamaica had solid underlying performance which was mostly offset by unrealized fair value losses.
- Sagicor's share of Sagicor Jamaica's net income to shareholders was
$3.2 million for the quarter. - Total net CSM(1) was
$275.4 million , a decrease of 2% Q/Q.
-
Sagicor Life's insurance revenue reflects continued growth in the portfolio across all lines of business, with strong revenue growth in the short-term business driven by repricing initiatives on renewals and adjustments on product offerings. - Net income to shareholders was
$9.8 million for the quarter due to lower incidence of onerous contracts as a result of adjustments to product offerings and solid net investment income from growth in the portfolio. - Total net CSM(1) was
$232.3 million , an increase of 1% Q/Q.
Head Office, Other, and Adjustments
- Net income to shareholders was
($29.1) million for the quarter, consisting of net financing costs of($24.4) million , and head office and other expenses of($4.7) million .
On
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1 Represents a non-IFRS or other financial measure. See the Non-IFRS and Other Financial Measures section in this document and in our MD&A for relevant information about such measures. |
On
Sagicor repurchased 165,000 shares which were cancelled in Q1 2024 for a total cost of approximately
The annual meeting of shareholders will be held at
Sagicor is using "notice-and-access" to deliver its meeting materials and, as a result, the notice of meeting and accompanying management information circular will be accessible on Sagicor's website at https://www.sagicor.com/en/Investor-Relations/Annual-General-Meeting, under Sagicor's profile on SEDAR+ at www.sedarplus.ca, and at https://docs.tsxtrust.com/2173 from
The in-person meeting will take place at the
Registered shareholders and duly appointed proxyholders will be able to virtually attend, participate and vote at the meeting online at: https://web.lumiconnect.com/250230744 (password: sagicor2024 (case sensitive)).
As further detailed in the notice of meeting and accompanying management information circular, registered shareholders will receive a form of proxy by mail containing a unique "control number" that may be used, together with the password sagicor2024, to virtually attend, participate and vote at the meeting. If you are a registered shareholder and you do not receive your form of proxy by
Sagicor's 2023 Annual Report and 2023 Annual Information Form remain available on the meeting webpage and in the investor relations section of www.sagicor.com.
If you wish to receive a paper copy of the notice of meeting, management information circular or any other related document, please contact the
This press release, which was approved by the Company's Board of Directors and Audit Committee, should be read in conjunction with the Company's unaudited consolidated financial statements and accompanying MD&A. The unaudited financial statements and MD&A are available on the Company's website at www.sagicor.com and will soon be filed on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") at www.sedarplus.ca.
Certain information contained in this news release may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "expect", "anticipate", "target", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may", "would" and "should" and similar expressions or words suggesting future outcomes. These forward-looking statements reflect material factors and expectations and assumptions of Sagicor. Sagicor's estimates, beliefs, assumptions and expectations contained herein are inherently subject to uncertainties and contingencies regarding future events and the impact of IFRS 17 on the presentation of Sagicor's financial statements, and as such, are subject to change. Risks and uncertainties not presently known to Sagicor or that it presently believes are not material could cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional information on these and other factors that could affect events and results are included in other documents and reports that will be filed by Sagicor with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca). Readers are cautioned not to place undue reliance on the financial information or forward-looking statements contained herein, which reflect Sagicor's estimates, beliefs, assumptions and expectations (including with respect to the impact of IFRS 17) only as of the date of this document. Sagicor disclaims any obligation to update or revise any forward-looking statements contained herein, whether as a result of new information, new assumptions, future events or otherwise, except as expressly required by law.
The Company reports certain non-IFRS measures and insurance industry metrics that are used to evaluate its performance. As non-IFRS measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other companies. Securities regulators require such measures to be clearly defined and reconciled with their most comparable IFRS measures. These measures are provided as additional information to complement IFRS measures by providing further understanding of the results of the operations of the Company from management's perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute for analysis of the Company's financial information reported under IFRS. Non-IFRS measures used to analyze the performance of the Company's businesses are set out below. Please see the discussion below for an explanation or a reconciliation of certain non-IFRS measures.
Group Life Insurance Capital Adequacy Test ("Group-LICAT"): The Group's goal is to maintain adequate levels, at sufficient margins above minimum regulatory capital requirements, to maintain consumer confidence as well as credit ratings with external rating agencies. Management engages the Board with regards to actions necessary to maintain appropriate capital levels. Sagicor has voluntarily elected to follow OSFI's LICAT Guideline, specifically the latest amendment which became effective
Return on Shareholders' Equity ("ROE"): IFRS does not prescribe the calculation of return on shareholders' equity and therefore a comparable measure under IFRS is not available. To determine this measure, reported net income/(loss) attributable to shareholders is divided by the average of the opening and closing common shareholders' equity for the period. The quarterly return on shareholders' equity is annualised. This measure provides an indication of overall profitability of the company.
Book value per share: To determine the book value per share, shareholders' equity is divided by the number of shares outstanding at the period end, net of any treasury shares. All components of this measure are IFRS measures.
Revenues: Revenues is the sum of three IFRS measures: insurance revenue, net investment income, and fees and other income.
Debt to capital ratio: The debt-to-capital ratio is the ratio of notes and loans payable (refer to note 7 to the
Total capital: This measure provides an indicator for evaluating the Company's performance. Total capital (
New business CSM: This measure is the amount of the contractual service margin added from contracts initially recognized in the period.
New business production: This measure is equal to the amount of annuities and life insurance new business paid premium.
Total net CSM: This measure is the balance of the direct contractual service margin net of reinsurance contractual service margin.
Net CSM to shareholders: This measure is the amount of the total net CSM attributable to shareholders.
Shareholders' equity plus net CSM to shareholders: This measure is the sum of total shareholders' equity and net CSM to shareholders. It is an important measure for monitoring growth and measuring insurance businesses' value.
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