Wednesday, November 13, 2013

Sagicor announces $1.52 billion in Q3 profits despite NDX

Sagicor Life Jamaica, on Friday announced the financial performance of its Group of companies including Sagicor Investments Jamaica Limited of which SLJ owns 85.45%. The Company generated consolidated net profits of $1.52 billion 9% more than the $1.39 billion posted in Q3 2012. 

Richard Byles, President and CEO of the Company said, "Our performance is largely due to the continuation of strong new business and a more favorable insurance benefits experience." 

Noting the impact of the National Debt Exchange (NDX) in quarter one which resulted in realized capital losses of $1.2 billion Byles said "We anticipated the negative effect of the NDX programme on our results but were also very aware of the long-term potential benefits to the national economy in which the Group operates." Following the NDX programme Sagicor now carries a large portion of GOJ securities with lower market values, lower coupon rates and extended tenors.

Total assets of the SLJ Group grew to $190.37 billion, up from $175.01 billion as at December 2012, a 10.7% increase over the nine month period. Total assets under management, as at September 2013, including pension fund assets managed on behalf of clients and unit trusts, amounted to $316.45 billion, up from $295.42 billion as at December 2012.

The company also announced that the Sagicor Real Estate X Fund Limited (X Fund) which was launched through an IPO in September and raised $1.5 billion has applied for a listing on the Jamaica Stock Exchange. Its primary investment will be in units of the Sagicor Sigma Real Estate Fund. Sagicor Sigma Real Estate is a unit trust portfolio invested in prime Jamaican real estate and currently owns 12 properties valued in excess of $12 billion.

Another significant development during the 3rd quarter of 2013 for Sagicor was the unanimous decision taken at an Extraordinary General Meeting (EGM) of Shareholders held in September to approve the reorganization of the Sagicor Jamaica Group of Companies under a Scheme of Arrangement. Work continues in earnest on the reorganization project which involves the establishment of a new listed holding company to carry the shares of Sagicor Life Jamaica Limited, Sagicor Investments Jamaica Limited and Sagicor Bank Jamaica Limited.

Sagicor Life Jamaica Limited is the leading life insurance group in the country. The company commenced operations in 1970 as Life of Jamaica Limited, the first locally owned life insurance company and the first life insurance company to be listed on the Jamaica Stock Exchange (JSE). Since its inception, Sagicor Life has gained a solid reputation as an innovator and leader in the Caribbean life insurance industry. The company continues to be the market leader among local life insurance companies.

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