The Sagicor Life Jamaica (SLJ) Group has reported a solid financial performance in the just released Q3 results. Earnings for Q3 2012 were $1.387 billion, 6% up on the Q3 2011 results. Year-to-date earnings were reported at $4 billion, 3% ahead of last year.
Richard Byles, SLJ president and CEO, said the Group’s performance was driven by continued good growth in insurance business, an investments portfolio that performed well under the circumstances and tight control of operating costs. “I am pleased with the results. While our business segments performed well, we had to carry a significant charge to earnings for asset tax,” Blyes declared.
Group revenues for the nine month period of $23 billion were 5% more than last year. There was a very large single premium annuity contract issued during Q3 2011 by the Employee Benefits Division so consolidated revenue growth appears moderate. The Individual Insurance segment generated total revenues of $7.9 billion, a 13% growth over a year-earlier while Employee Benefits revenues remained flat at $11.3 billion due to the large single premium in 2011. Revenues in Banking and Asset Management fell by 2% to $3 billion.
Benefits paid to policyholders or their beneficiaries totalled $7.8 billion and were 14% more than in 2011. Administrative expenses of almost $5 billion were 11% more than in 2011, reflecting mainly higher staff costs. The efficiency ratio (expenses to revenue) for SLJ remained at around 22%; whist for the PCFS banking Group it increased to 47%.
The earnings for the first nine months of 2012 represent basic earnings per stock unit of $1.06 and an annualized return on average Stockholders’ Equity of 18%, the company said. SLJ Stockholders’ Equity as at September 2012 was $31.84 billion, compared to $28.29 billion as at December 2011. To the end of October stockholders would have received two interim dividend payments totalling 56 cents per share.
“Generally we are operated to target, except for the new asset tax. We also anticipate a reasonable 4th quarter. ,” stated Byles.
In speaking to news which broke in late September, of subsidiary PanCaribbean’s intention to rebrand as Sagicor; Byles was keen on highlighting the benefits of this recently announced change. “Strategically we want to align our operations more closely and leverage capabilities across the Group,” shared Byles.