Sagicor’s profit virtually slashed in half from shocks

Sagicor Group Jamaica, the insurance conglomerate, recorded net profit of $2.0 billion for the first quarter ended March 2026, a 49 per cent decline from a year earlier, as geopolitical shocks and hurricane-related provisions weighed on results across its business lines.

"Against the backdrop of heightened geopolitical tensions, inflationary pressures, and continued market uncertainty, our first quarter performance reflects the resilience of our diversified business model and the strength of our core operations," said President and Chief Executive Christopher Zacca.

Earnings per share attributable to stockholders fell to $0.52 from $1.02 a year earlier, with return on equity at 7.0 per cent.

"While market conditions impacted investment valuations during the period, we continued to see robust insurance sales, strong banking activity, and disciplined execution across the group. Importantly, we remain well-capitalised and focused on delivering long-term value for our shareholders, clients and wider stakeholders."

Capital stood at $114.5 billion at March 2026, up from $106.3 billion a year earlier. 

Management also flagged uncertainty surrounding the US-Israel strikes on Iran, which pushed global oil prices higher and stoked inflation. 

"The US Federal Reserve is expected to remain cautious amid a softening labour market and uncertainty surrounding the macroeconomic implications of the US–Israel–Iran conflict," Sagicor said in the preface to its financials.

The island also suffered from Hurricanes Beryl and Melissa in 2024 and 2025. During the quarter, credit impairment losses narrowed to $139 million from $347 million a year earlier.

Divisions

The long-term insurance division — covering policies exceeding one year — posted net profit of $2.08 billion, easing from $2.35 billion a year earlier. The short-term insurance division swung to a near-breakeven net loss of $20 million from a profit of $870 million, as hurricane-related provisions compressed the segment's results.

Commercial banking was the standout performer, with net profit rising to $830 million from $490 million on a 13 per cent revenue increase. Net interest income and card payment volumes both contributed, with $12.46 billion in new loans written and interest income up $560 million. Deposit and funding liabilities also expanded during the period.

Investment banking retreated, with net profit falling to $120 million from $540 million. Net investment income declined 29 per cent to $1.12 billion, the prior year having been flattered by one-off trading gains. The group noted that short-term funding rates remain elevated and interest expense increased.

Outlook

Locally, Jamaica has moved further into the reconstruction phase following Hurricane Melissa, supported by the restoration of utilities and improving economic activity. The Bank of Jamaica maintained its focus on inflation management and foreign exchange stability, while projecting economic growth for the fiscal year.

"Notwithstanding the headwinds posed by elevated commodity prices and global geopolitical uncertainty, Sagicor Group Jamaica continued to deliver a strong financial performance," the group stated.

business@gleanerjm.com