Tue | Jul 17, 2018

Sagicor nets $2.6b profit in March

Published:Friday | May 12, 2017 | 12:00 AMSteven Jackson
Retired CEO of Sagicor Group Jamaica, Richard Byles.

Sagicor Group Jamaica (SGJ) made $2.59 billion net profit for shareholders in its March quarter, or 36 per cent higher profit than a year earlier.

The financial conglomerate attributed the profit rise to the "strong growth" in its insurance segments as its banking segment made less profit.

The earnings per stock unit totalled $0.67 compared to $0.49 for last year and the return on average stockholders' equity stood at 18 per cent versus 16 per cent a year earlier.

"Our core insurance and annuities businesses produced good earnings. However, profitability of the banks was negatively impacted by loan-loss provisions, as well as higher costs, some of which were one-time expense items," stated the financials signed by director, Richard Byles, who retired as president and chief executive officer at the end of April. Chris Zacca assumed his role on May 1.

Total revenues climbed 11 per cent to $15.26 billion with net premium income accounting for just over half at $8.53 billion. The group earned 13 per cent higher premiums on its individual lines of business, while group insurance and annuities premiums increased six per cent. Investment income before interest expense and capital gains of $5.05 billion increased four per cent higher than in 2016. Fees and other revenues of $2.01 billion rose 34 per cent year on year.

"While we experienced lower yields on invested assets in the current quarter, the growth in overall revenue stemmed primarily from business expansion," stated the group.

Segment results show higher revenues for all segments which includes individual, employee, investment banking and commercial banking. Segment profits totalled $649.1 million, for individual, $2 billion for employee, $192.9 million for investment banking and $92.3 million for commercial banking.

Total assets of the group totalled f $338.7 billion, up from $315.18 billion as at March 2016, but slightly lower than the $340.95 billion as at December 2016.

On the first of June, Danny Williams will retire as chairman and will be appointed director emeritus for a number of Sagicor boards, while Byles will assume the chairmanship of Sagicor Group.