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Sagicor Q1 profit up 14%

Published:Friday | May 11, 2012 | 12:00 AM

Sagicor Life Jamaica maintained its growth trajectory in the first quarter, after a stellar year of record profits.

The insurance group reported higher net profit of J$1.5 billion in the March quarter on the back of improvements in all three revenue lines: net premium revenue, net investment income, and fees and commissions.

Total revenue climbed to J$7.5 billion, up 10 per cent year-on-year.

Net profit grew at a more robust pace of 14.5 per cent, from J$1.35 billion to J$1.55 billion, notwithstanding a spike in administrative expenses and claims payments.

Total expenses climbed by half-billion dollars to J$5.7 billion.

For financial year ending December 2011, Sagicor made J$5.75 billion from revenue of J$28.7 billion.

The insurance group is valued at J$170 billion by total assets, and has a net worth of J$32 billion. The five per cent improvement in its asset base is partly linked to a bond transaction by banking and asset management subsidiary Pan Caribbean Financial Services.

Sagicor said PanCaribbean purchased a euro-denominated GOJ note during the quarter, which it said was fully hedged. It did not directly disclose the value of the transaction, but indications are that the note was valued about J$5 billion.

The insurance company said the transaction accounted for the increased derivative financial instruments on its balance sheet, which moved up from J$839.42 million in December to J$5.89 billion in March.

PanCaribbean group, which is owned 85 per cent by Sagicor, made J$452 million for the quarter or 10 per cent less than the comparative 2011 period.

Sagicor's liquidity position was virtually unchanged with net cash of J$3.3 billion.

The insurance company said its risk adjusted ratio, called the Minimum Continuing Capital and Solvency Requirement, was 174.7 per cent at the end of March.