Sagicor Financial Company, the parent company of the Jamaica-based Sagicor Group, had a torrid 2020 first quarter, with revenues and profit collapsing. The second quarter ending June could be better as capital markets are enjoying some rebound that could reverse some of the investment losses in the first quarter.
Premium income dropped from US438 million in 2019 to $342 million and net premium Income declined to $318 million from $265 million. Profit for the quarter was impacted, mostly by the performance of the banking and investment operations, with credit impairment losses rising, from just $48,000 to $16 million and fair value changes and interest income falling from a positive contribution of $36 million to a loss of $94 million. The net effect of the above resulted in total revenues plummeted from $516 million to $343 million in 2020. Thankfully, a sharp drop in Policy benefits and change in actuarial liabilities contributed $232 million to a reduction in expenses bringing net benefits to policyholders down to $203 million versus $348 million in the 2019 March quarter. Administrative and other expenses rose, from $131 to $153 million and resulted in a loss after taxes and results of the associated company to $25 million from a profit of $32 million in 2019.
The company ended the quarter with total assets of $8.5 billion and shareholders’ equity of $1.05 billion, down from $1.15 billion in March 2019.
The company’s shares trade on the Toronto Stock Exchange.
Big drop in Sagicor Financial profit
June 29, 2020 by
